Events:
The company publishes its 2021 annual report.
Main points of the report:
Revenue is under short-term pressure affected by the switching of brand cooperation mode. the profit end of the company achieved 4.155 billion yuan in 2021, down 9.67% from the same period last year, and the net profit was 411 million yuan, an increase of 20.99% over the same period last year. 363 million yuan, an increase of 17.32% over the same period last year.
In 2021, the company's gross profit margin is 36.46%, year-on-year + 6.10pcts, sales / management / R & D / financial expense rate 20.12%, 2.96%, 0.27%, + 3.54/+0.79/+0.01/-0.15pcts, net profit 9.86%, year-on-year + 2.52pcts. The income and profit structure of the company has changed greatly, with both gross profit margin and net profit margin rising. It is mainly affected by the switching of brand cooperation mode (the proportion of high gross profit service fee model increases), the change of some brand cooperation terms (the company purchases at a lower discount and bears the marketing expenses) and the scale effect.
In a single quarter, the Q1-4 company's revenue was 7.55, 11.00, and 645 million yuan, respectively, compared with the same period last year. + 15.51%, 4.38%, 2.15%, 22.56%, 0.44, 0.61, 0.56, and 0.49 million, respectively, with an increase of 5.01%, 49.06, 35.76, and 0.96%.
Douyin business is growing rapidly and independent brands are coming to the fore.
In terms of business, the company's retail business / marketing services business income in 2021 was 2.872 billion yuan, which was 8.85% compared with the same period last year. This was mainly affected by the change of Ponzi, Vaseline and other brands from distribution to service charge mode. The cooperation with the main brands Sulwhasoo, Hou, Furious, Yayang and other brands remained stable. In 2021, the company's advantage in the field of beauty makeup was further consolidated, and the company reached a cooperation with luxury goods group COTY and Suffina brand of Flower King in a number of e-commerce channels. The service brand covers all categories of beauty makeup and high, middle and low-end levels. From a platform-by-platform point of view, Tmall domestic / Tmall International / other platforms have an income of RMB 2.709, which is RMB 1.64 million, which is-14.78% more than that of last year. Among them, Douyin business relies on the original customer resources and strong marketing ability to achieve rapid growth, the annual contribution income of about 200 million, the proportion continues to increase. In addition, the company seized the new opportunities in the market and actively laid out its own brand, successively launched the skin care brand Meitang, which locates moisturizing technology and repair, and Yurong Chu, a skin care brand that focuses on plant skin care and aims at sensitive muscle people. the revenue of its own brand will reach tens of millions in 2021.
Investment advice and profit Forecast
The company is a domestic beauty makeup head generation operator with strong e-commerce operation ability. since 2021, it has actively developed Douyin business, steadily incubated its own brands, appropriately invested in emerging brands, and developed steadily. We estimate that the company's 2022-2024 net profit from homing is 4.58 million, 510, 564 million, and EPS is 1.14, 1.27 and 1.40, respectively, and the corresponding PE is 18, 17, 15x, maintaining a "buy" rating.
Risk hint
The growth rate of the industry slows down, the competition intensifies, and the head brand withdraws the risk of acting operation rights.