Event: the company released the three-quarter report of 2022, the company achieved operating income of 2.417 billion yuan in the first three quarters, + 45.79% year-on-year; net profit of 44 million yuan, + 14.19%; deduction of non-return net profit of 19 million yuan, + 335.52%, turning losses into profits over the same period last year; gross profit margin 35.17%, year-on-year-17.49pct Cost control is good, sales / management / R & D / financial expense rates are 23.99%, 5.17%, 0.61%, 1.34%, respectively, year-on-year-8.72 pct/-2.94pct/-0.86 pct/-2.38pct, net interest 1.95%, year-on-year-0.66pct single quarter, 2022Q3, the company's main positive and new products continue to release, achieving revenue of 803 million yuan, year-on-year + 49.62% The net profit is 1 million yuan,-74.46% compared with the same period last year; the gross profit margin is 29.43%,-21.27 pct year-on-year, month-on-month; the net profit rate is 0.41%, year-on-year-0.57pct, month-on-month-2.45pct operating margin is improved, and the dilemma reverses the trend. The founder of the company has resumed trading to promote the transformation to a new retail direction, and the management and operational efficiency has been continuously improved. During the third quarter, the company quickly switched products and cleaned up the old inventory in accordance with the requirements of the new GB policy. The gross profit margin is under pressure. The second formula registration will be implemented in February 2023. The terminal market competition is fierce. The company is in a critical moment of seizing market share, taking the initiative to give profits to some categories to seize the market, as well as the rising cost of raw materials and auxiliary materials and changes in business structure. Net operating cash flow has increased significantly. It rose from 91.83 million yuan in the same period last year to 304 million yuan in the current reporting period, an increase of 231.36% over the same period last year.
The traditional main business is steady growth, and the performance of the new retail business is outstanding. The company's main business and innovation business have shown a good momentum of growth this year. In terms of main business, as the first star product of the company's new retail direct supply channel, Beinmei "Ke Ruixin" has strong product strength and high repurchase rate. and has taken the lead to obtain the new GB secondary formula registration certificate, registered new products will also be listed in the near future, the company's large single "Aijia" and other formulations have completed on-site review The registration of other series of infant formula is progressing smoothly. In terms of innovative business, it mainly focuses on the construction of the mother-child ecosystem, which is conducive to enhancing the upstream discourse power of the company, increasing user stickiness, reducing customer acquisition costs, raising customer unit prices, and forming a benign collaborative ecology.
Equity incentive binds the core backbone interests to enhance the cohesion of the company. During the reporting period, the company launched a stock option incentive plan with an exercise price of 4.89 yuan per share, requiring that between 2022 and 2024, the operating income should not be less than 3.54 billion yuan, 6.637 billion yuan and 10.619 billion yuan, and the return net profit should not be less than 120 million yuan, 400 million yuan, and 800 million yuan. The trigger value is not less than 80% of the target for that year, and each half of the income and profit are weighted.
Investment suggestion: the company takes the "Beinmei beingmate" brand as the leader, user thinking as the guide, to build a new retail model to improve operational efficiency, to create an open maternal and infant ecosystem, and to provide a comprehensive solution for the new generation of parents in the birth, rearing and education of their babies, leading the new "scientific and refined" parenting model. It is estimated that the return net profit of the company from 2022 to 2024 is 1.28pm 2.49 / 457 million yuan respectively, and the EPS is 0.12max 0.23max 0.42 yuan respectively. The current share price corresponding to PE is respectively times that of 41-21-11, maintaining the "buy" rating.
Risk tips: repeated impact of the epidemic, industry policy risk, new business promotion is not as expected, industry competition intensifies risk, sales platform management risk.
