Deep ploughing mother-child racing track for many years, expand the field of medical & medical services. Founded in 1996, the company specializes in medium-and high-end mother and baby products, with three independent brands: LABIBABY, ILOVEBABY and BABYLABI, and was listed on the Shenzhen Stock Exchange in 2015. After listing, the company continues to enrich the layout of maternal and infant market segments, subscribing to the Asia-Pacific International Maternal and Infant Industrial Fund in 2016 and investing in Mille Dairy in 2017, helping the company indirectly enter the field of maternal and infant smart appliances and baby food.
In 2018, the company put forward the strategy of "product + service + Internet", and cut into the medical & medical track through equity acquisition in 2021 to create a new model of "maternal and infant products + medical and medical services".
The poor performance of some investment targets leads to fluctuations in the net profit margin. After the listing of the company, the income fluctuated slightly and the net profit fluctuated greatly from 2015 to 2019. In 2018, due to the poor performance of Jiangtong Media, the investment target, the provision for large asset impairment dragged down the return net profit by 57%. Affected by the epidemic in 2020, income / return net profit decreased by 28.55% and 30.05% respectively. Revenue fell slightly by 4.41 per cent in 2021, but net profit fell 57 per cent due to difficulties in Mille's operation, asset impairment losses on the sale of the investment project and an investment loss of 44 million yuan.
The growth of the main business of maternal and infant consumer goods is slightly weaker. Due to the decline in the one-child fertility rate, maternal and infant consumption has been relatively weak in recent years, and the growth of the company's income on consumer goods for mothers and infants has slowed, with CAGR4.65%,2020/2021 falling by 29.29% in 2015-2019. 1) from a sub-channel point of view, offline income has declined continuously in recent years, while online income has grown steadily and its share has gradually increased. In 2021, revenue from online / offline / other channels accounted for 31.15%, 67.78%, 1.07%, and + 19.07%, 12.23%, 12.86% respectively. 2) from the point of view of offline endogenous extension, the number of stores continues to shrink and the store efficiency stabilizes. Offline channels are mainly franchise (direct marketing / franchise revenue accounts for 25%, 75%). At the end of 2021, there are 917 stores (112 +) and 98 Jingguan stores (72). The efficiency of the store is 221200 yuan (452828,1890, respectively) and-2.85% compared with the same period last year (direct marketing + 0.27%, joining-1.81%).
"Mother and infant + medical treatment, medical beauty" form "product + service" two-wheel drive. In 2021, the company formulated the strategy of "Maternal and Infant products + Medical, Medical and Beauty Services", and laid out the field of medical beauty, gynaecology and obstetrics. 2021.4 acquires Han Fei's 36% equity, participates in the establishment of a medical and beauty industry fund, and is involved in the medical and beauty track, 2021.8
Investment in the establishment of maternity hospitals and Yuezi center, the current maternity hospital building has entered the stage of internal decoration, the project is progressing steadily. Han Fei invests and holdings five medical and cosmetic institutions (all located in Guangdong). Its Guangzhou Hanfei obtained the qualification of the only third-tier medical plastic surgery hospital in Guangdong Province in 2021. Han Fei's investment in 2019max 2020 realized a net profit of about-5621pm 1186 million yuan respectively. According to the gambling agreement, Han Fei promised that the net profit of deducting non-home net profit in 2021pm 2022 would not be less than 50,000,000,000 RMB respectively. The achievement in 2021 was 29.7 million yuan, and the promised performance was not fulfilled due to the repeated epidemic situation in the Greater Bay area where the organization is located.
Profit forecast and investment rating: the company has been deeply engaged in the mother and child industry for many years, and its performance is affected by weak terminal consumption and short-term investment losses. it is expected to provide a new driving force for growth by laying out the medical & medical and beauty business in 2021 and cutting into the medical and beauty track with strong demand and rapid growth. It is estimated that the homing net profit from 2022 to 2024 will increase by 171.89%, 16.67% and 15.90%, corresponding to a PE of 74, 64 and 55X, with a high valuation and a "neutral" rating for the first time.
Risk hints: recurrent epidemic situation, weak consumption in maternal and infant industries, and lower-than-expected development of medical and beauty business.