Event: in the first quarter of 2021, the company realized business of 901 million yuan, an increase of 12.60% over the same period last year, a net profit of 300 million yuan, an increase of 38.37% over the same period last year, and a net profit of 277 million yuan for deduction, an increase of 32.92% over the same period last year.
Profitability increased significantly in the first quarter, with gross profit margin rising to 56.23% (year-on-year + 3.69pcts) and net profit margin rising to 33.60% (year-on-year + 6.65pcts). From the perspective of profitability, the company's gross profit margin still rebounded sharply in the first quarter despite the freight adjustment of the new accounting standards, which may be mainly due to the continued price increase of the main product coenzyme Q10, which fully benefited the company. In terms of expense rate, the 21Q1 sales expense rate was 6.38%, down 2.75pcts from the same period last year, the management expense rate was 11.77%, an increase of 1.98pcts over the same period last year, and the financial expense rate was 0.19%, down 0.39pct from the same period last year. Judging from the situation of new products and new projects, this year's health care product NMN still has a lot of interesting points. first, the company launched three series of new products for the content of NMN in the first quarter, which belong to different prices, giving different consumers more choice and more conducive to opening the market. according to Tmall's data, the company's NMN products have led the sales of similar products since they were put on shelves in July last year. Second, the 500T coenzyme reconstruction and expansion project will be put into production this year, mainly to produce NMN, to ensure the supply of raw materials for NMN products. Generally speaking, the price of coenzyme Q10, the main product of the company, continues to rise this year, vitamins maintain stability, the sales of health products are expected to be good, and the annual performance will be able to record good growth.
Investment suggestion: Jindawei is one of the major global vitamin A suppliers, coenzyme Q10 market share is expected to be more than 60%, health products have the whole industry chain, the strategy is optimistic about the development of NMN, the company will continue the dual main business model of "manufacturing + brand operation" in the future. It is estimated that the company's EPS from 2021 to 2023 will be 2.04,2.41,2.83 yuan, corresponding to PE 18.6,15.8 and 13.4 times respectively, maintaining a "buy" rating.
Risk tips: market expansion is less than expected, downstream demand is lower than expected, product prices have fallen sharply, raw material prices have fluctuated sharply, the risk of environmental protection, the risk of production safety, and the impact of domestic industry regulatory policies on the company's operation. NMN products account for a low proportion of the company's sales and do not have a significant impact on the company's current performance. The effectiveness of the company's NMN products has not been evaluated by FDA and is not used to diagnose, treat, cure or prevent any disease.