Main points of investment
Event: in 2021, the company achieved revenue of 4.155 billion yuan / year-on-year-9.67%, net profit of 411 million yuan / year-on-year + 20.99%, deduction of non-return net profit of 363 million yuan / year-on-year + 17.32%, gross profit of 36.46% / year-on-year + 6.10pct (adjusted, same below), net profit 9.9% / year-on-year + 2.52pct.
From a platform-by-platform point of view, Tmall domestic, Tmall International and other platforms achieved revenue of 37.1% 1.6 / 280 million yuan, respectively, compared with the same period last year. The gross profit margin was 37%, 47%, 23%, respectively, and was still dominated by Tmall. Emerging platforms such as Douyin are growing rapidly; from a product point of view, cosmetic revenue is 4.05 billion yuan / year-on-year-9.25%, which is still the main business. From a sub-model point of view, e-commerce retail and brand agent operation respectively achieved revenue of 3.87 billion yuan, compared with the same period last year. 8.85% of retail revenue was 8.85% compared with the same period last year, mainly due to the conversion of Ponzi, Vaseline and other brands to generation operation mode.
Omni-directional strategic layout to enhance its core competitiveness: 1) expand cooperative brands and consolidate its leading position in cosmetics e-commerce retail: in addition to stable cooperation with more than 60 brands such as Sulwhasoo, Houwei and Furifang, it reached cooperation with Koty Group in 2021 to provide operational services for luxury cosmetics brands such as Burberry, Mac Jacobs and Philosophy, and reached cooperation intention with Sufina on Tmall's flagship stores, Douyin, Little Sweet Potato and other channels. 2) develop new platforms and look for new growth points: the company continues to invest in emerging e-commerce marketing platforms and has cooperated with Henkel, Huawang, Pierfarb, LG, Koty and other groups. at present, the number of Douyin stores has reached 33; open up a non-cosmetic track represented by Kuduoduo, and enrich its business scope. 3) actively incubate their own brands: Mei Yitang and Yurong have launched their own brands with distinct positioning to meet the diversified needs of consumers.
In terms of financial indicators, 1) profitability: gross profit margin 36.46% / year-on-year + 6.10pct in 2021, mainly due to the change of some cooperative brand business models from distribution mode to agent operation mode, sales rate 20.12% / year-on-year + 3.54pct, management rate 2.96% / year-on-year + 0.79pct, net profit 9.9% / year-on-year + 2.52pct 2) operating net cash flow-134 million yuan, a sharp decline, inventory turnover days of 143.6 days, a significant increase, mainly due to a substantial increase in procurement of goods.
Profit forecast and rating: at a time when the Internet industry policy is tightening and traffic growth is slowing down, the company is actively laying out new brands, new platforms and new categories to reduce costs and increase efficiency. It is estimated that the return net profit of the company from 2022 to 2024 is 4.66,5.00 and 570 million yuan respectively, and the EPS is 1.16,1.24,1.42 yuan per share respectively, and the PE corresponding to the closing price on March 3, 2022 is 17.7,16.5,14.5 times respectively, which is rated as "prudent increase" for the first time.
Risk tips: policy risk, intensified market competition, downstream customer loss, etc.