The overall performance is stable, and there will be more volume in the second half of the year.
According to the company's 21H1 performance report, the operating income in the first half of the year was 1.777 billion yuan, an increase of 10.48% over the same period last year; the net profit belonging to shareholders of listed companies was 507 million yuan, an increase of 2.43% over the same period last year. In the context of rising raw material prices, the sales price of the coenzyme Q10 series rose as well as the sales volume, the revenue increased by 43.92% over the same period last year, and the proportion of business in total revenue exceeded that of VA for the first time. With the substantial increase in cross-border e-commerce and member store channel traffic of the company's multi-brands, the share of overseas market business has increased by 2.65% compared with the same period last year.
Actively promote production capacity construction, NMN series ready to start
The new VA and VD3 projects will be put into trial operation, while the 500T coenzyme expansion project has been completed and put into production.
The company's NMN raw material products have been certified by the American FDA standard GRAS. Combined with the production capacity construction, NMN products will have a greater volume in the whole market. NMN category products showed great potential as soon as they were launched last year. With the gradual expansion of the production line, NMN will carry coenzyme Q10 to fully activate the Doctor'sBest brand vitality.
The "double main business" model creates the whole industry chain model.
The company has higher brands and technical barriers in raw materials such as coenzyme Q10 and vitamin A, and owns brands such as DRB and Zipfizz to build a health food terminal product matrix, and then through equity participation in e-commerce platform iHerb, relying on upstream core raw materials endorsement, to achieve the layout of the upstream, middle and downstream industry chain. In addition, the company has also carried out diversified expansion in terms of channels, establishing 57 distribution customers and 214 store group customers in China in the first half of the year, and cooperating with 17 duty-free stores in Hainan. In the future, the company will enter the medical and beauty industry and gradually develop "hyaluronic acid" of food grade, cosmetic grade and pharmaceutical grade based on the original production technology.
Raw material projects inject new impetus into the long-term development of the company.
Profit forecast and investment suggestion
Considering that the company's future performance growth is supported by many factors, it maintains the revenue forecast for 2021-2023, the corresponding annual EPS is 2.02,2.34,2.62 yuan respectively, and the corresponding share price PE is 18,15,14 times, maintaining the "overweight" rating.
Risk hint
Raw material price fluctuation risk; M & A management risk; food safety risk and other risks.