\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Events
The company released the operating data from January to February. After preliminary accounting, the company achieved a total operating revenue of about 630 million yuan from January to February 2022, an increase of about 30% year-on-year; The net profit attributable to shareholders of listed companies was about 60 million yuan, with a year-on-year increase of about 35%.
The main brand Proya Cosmetics Co.Ltd(603605) gmv has increased rapidly, and a variety of star products are firmly at the top of the category
According to the company’s official war report, during the “March 8” festival, Proya Cosmetics Co.Ltd(603605) boarded the top 5 of tmall beauty industry, the top 1 of tmall beauty products and the top 1 of JD skin care products. The main brand Proya Cosmetics Co.Ltd(603605) Tmall official flagship store turnover (GMV) grew by more than 200%, and the turnover volume of tiktok platform (GMV) increased by more than 100% over the same period. The strategy of “big single product” has been effective, and many of its star products are firmly in the forefront of category sales. Among them, Proya Cosmetics Co.Ltd(603605) “morning C night a” ace suits have sold more than 78000 pieces in total; The total sales volume of “anti double cream” and “Ruby essence” of the first year old product were 160 thousand and 39 thousand respectively. Proya Cosmetics Co.Ltd(603605) “source power essence” accumulative total sales volume reaches 85 thousand, “feather sense sunscreen” accumulative total sales volume amounts to 28 yuan.
Caitang, a cutting-edge brand, has a strong momentum and is expected to become another growth curve of the company
During the “March 8” festival, the Gmv of Caitang tmall flagship store increased by 400% year-on-year and opened for 40 minutes, breaking through the full-time Gmv of March 8 last year, with a strong brand momentum. The channel of sound tiktok is coming into full play. During the 3 / 8 activity, the total amount of self broadcast broadcast exceeded 60w+, and GMV grew by 1800% over the same period. Make-up large single product to create the first prototype, the master repair disk high gloss category TOP1, the master makeup before the milk was awarded the makeup category TOP4, double high gloss and high gloss category TOP3, the new Concealer disk rushed into the category of Concealer TOP4.
3.8 re planning, brand exposure and double growth of reputation
On March 8, the company specially planned and launched the theme marketing activity that gender is not the boundary line, and bias is the topic heat exceeded 120 million, and the brand achieved further out of the circle. The theme film “lion awakening girl” was filmed online, and Wang Shuang, a female football player, was invited to dub, and thousands of talents were invited to plant grass on multiple platforms; Offline joint BabyCare, Little Swan, meituan takeout and other brands put advertisements on landmarks in Beijing, Shanghai, Hangzhou, Shenzhen, Chengdu and other cities, realizing the double growth of brand exposure and reputation.
Investment advice
Thanks to strong R & D support, the company’s main brands have been upgraded and new brands have been added one after another, driving high performance growth, category expansion and matrix improvement. With the continuous consolidation of online operation capacity, explosive products quickly break the circle, the flow is natural, and strengthen brand construction. Online as the main line and offline parallel sales mode, while enjoying the dividend of e-commerce, pay attention to the marginal change of traffic structure, and transition from traditional e-commerce to short video emerging platform, highlighting the first mover advantage. We expect that the company’s EPS from 2021 to 2023 will be 2.91, 3.52 and 4.24 yuan / share respectively, corresponding to 58, 47 and 39 times of the current share price PE respectively. Maintain the “buy” rating.
Risk tips
Industry competition intensifies; Channel expansion is less than expected; The marketing effect is not as good as expected.
