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中国有赞(08083.HK):高基数压低同比增速 产品矩阵和销售网络蓄力待发

China Yoosan (08083.HK): High base reduces year-on-year growth rate, product matrices and sales networks are ready to go

興業證券 ·  May 13, 2021 00:00

Main points of investment

Revenue growth slowed, gross profit margin increased, and operating expenses increased, resulting in a further expansion of the net loss. The company's 2021Q1 realized operating income of 417 million yuan (YoY+11.9%) and gross profit of 245 million yuan (YoY+15.7%), corresponding to a gross profit margin of 58.7% (YoY+1.9pcts). The increase in gross profit margin was mainly brought about by the increase in the proportion of subscription solutions with high gross margin from 57.1% to 61.6%. The company's 2021Q1 net loss was 168 million yuan (YoY+27.1%), corresponding to a net loss rate of 40.3%, mainly due to a substantial increase in operating expenses, including sales expenses of 210 million yuan (YoY+29.9%), administrative expenses of 71 million yuan (YoY+56.4%), and other operating expenses of 137 million yuan (YoY+34.7%).

The number of new paying merchants decreased compared with the same period last year, but the structure was further optimized. 2021Q1 has 95692 paid merchants in stock (YoY+4.9%) and 7961 new paying merchants (YoY-43.1%). This is mainly due to the rapid opening of online stores by many merchants affected by the epidemic in the same period in 2020, resulting in a high base for this period. However, the structure of the new paid merchants has been optimized, of which more than 50% subscribe to the professional version and the flagship version. Structural optimization has also brought about an improvement in ACV, with 2021Q1's ACV reaching 13060 yuan, an increase of 10% from 11880 yuan in 2020. On the other hand, high-level subscribers have a strong ability to continue to operate, which will also bring the growth of sales and renewal rate.

Slow GMV growth is hampering revenue growth for merchant solutions. The GMV of 2021Q1 reached 23.6 billion yuan (YoY+13%), which is lower than that of the same period in 2020. On the one hand, it is due to the high base number in the same period in 2020, on the other hand, due to the continuous construction of Kuaishou Technology's own closed-loop e-commerce ecology, resulting in the loss of anchors who used to use praise store services, thus reducing the company's GMV from Kuaishou Technology platform. Slow GMV growth led to a 0.2% year-on-year drop in revenue from merchant solutions that charge service fees based on transaction volume, to 157 million yuan.

Further upgrade the sales network and launch a variety of rich product matrix at the same time. 2021Q1 has set up regional operation centers in Wuhan and Nanjing, with direct sales teams covering Hangzhou, Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Wuhan and Nanjing. At the same time, the company's channel agents are located in 153cities across the country, covering all first-tier cities, and gradually expanding the coverage of emerging markets. At present, the number of regional channels in Shandong, Jiangsu, Zhejiang and Guangdong has exceeded 40. In addition, the company also launched in 2021Q1 like WeCom assistant, Wang Xiaodian and AllValue three new products to further enrich the product matrix to meet the business needs of different scenarios.

Investment suggestion: the company is the leading SaaS service provider in the field of private domain traffic, and has formed a more mature SaaS product system. Youzan Technology, a subsidiary of the company, will be listed on the main board of the Stock Exchange by way of introduction, which will further accelerate the implementation of SaaS business strategy, consolidate the company's leading position in China's cloud business services industry, and its growth potential will be further released. In addition, the optimization of the company's new paying user structure is expected to lead to an increase in sales and renewal rates; at the same time, the rich product matrix can meet the business needs of different scenarios, coupled with the upgrading of the sales network, the company still has a lot of room for growth. Investors are advised to pay attention to it actively.

Risk hints: 1) intensified market competition; 2) macroeconomic downturn; 3) industry policy risks

The translation is provided by third-party software.


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