\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Event:
Proya Cosmetics Co.Ltd(603605) released the operating data from January to February 2022. It is estimated that the revenue from January to February 2022 will reach 630 million yuan / year-on-year increase of about 30%; The net profit attributable to the parent company is about 60 million yuan / + 35%.
From January to February, the online growth remained strong, and the offline adjustment is expected to be gradually stable. From January to February, the company achieved a revenue of about 630 million / + 30% and a net profit attributable to the parent company of about 60 million / + 35%, with strong growth in revenue and performance. According to Taobao data, Proya Cosmetics Co.Ltd(603605) main brand achieved strong growth of about 100% year-on-year in tmall channel in February, with early C and late a and force repair as the core products. In terms of shaking, according to the data of cicada mother, it is estimated that the Proya Cosmetics Co.Ltd(603605) GMV will exceed 100 million yuan in 1-2 months, of which the proportion of self broadcasting + small tiktok is over 70%. 2) Caitang achieved a cumulative year-on-year growth of 16% in tmall channel from January to February. Offline, it is expected that the company’s offline channels may remain stable throughout the year after the adjustment in 2021.
The achievements in the March 8th quarter are brilliant, and large items are the core of growth. The company has made brilliant achievements in the March 8th Festival, and its main brand Proya Cosmetics Co.Ltd(603605) achieves the top 5 in tmall beauty industry. Sub brands: 1) the main brand Proya Cosmetics Co.Ltd(603605) 38 quarter Tmall / jitter channel grew 200%+/100%+ compared to the same period, the trump card “early C late A” total sales volume of 78 thousand + parts / double anti essence reached 16+ million / RUBY essence reached 3.9+ million / force tiktok reached 8.5+ million / feather feeling sunscreen reached 28+ million, it is expected that the large single product series is the core of brand growth; 2) Gmv of Caitang 38 Festival increased by 400% year-on-year. In terms of tmall channel, the master of star products has been ranked as the top 1 in highlight category. And the master makeup milk / new product Concealer sector gets the TOP4/ Concealer category TOP4 before makeup. Tiktok won the TOP2 ranking of Chinese cosmetics and 2.26-3.8 sales increased by 18 times compared with the same period last year.
Release of product power + marketing power, “new” Proya Cosmetics Co.Ltd(603605) set sail. With the gradual expansion of the main brand Proya Cosmetics Co.Ltd(603605) large item matrix and the gradual improvement of the product system of color makeup brand Caitang, we believe that today’s image of Proya Cosmetics Co.Ltd(603605) has taken on a new look compared with that before 2019. The main brand Proya Cosmetics Co.Ltd(603605) , in addition to the early C night A, the essence of the essence, feather feeling sunscreen and other series, such as bowling series and other new products also have greater room for development. Since its 2 iteration in 2022, Cai Tang has formed a product matrix, such as a dressing table, makeup milk and concealer, which is expected to improve its profitability in 2022. On the marketing side, the company’s 3.8 theme film “lion awakening girl” has attracted extensive attention, helping the company’s special planning heat to exceed 120 million. In addition, the company also launched high-speed city landmarks with BabyCare, Little Swan, meituan takeout and other brands to continuously improve the brand impression.
Profit forecast and investment rating: the company’s data from January to February are bright, which verifies the strong brand potential of the company’s main brand. Caitang product matrix is also gradually improved, and its future development can be expected. We expect the company to achieve revenue of RMB 4.7 billion / 58 billion / 7 billion in 2021 / 2022 / 2023, with a year-on-year increase of 25% / 24% / 21%. It is estimated that the net profit attributable to the parent company will be RMB 580 / 740 / 920 million from 2021 to 2022 to 2023, with a year-on-year increase of 22.6% / 27.3% / 23.5%. For the first time, it will be rated as “overweight”.
Risk Tips 1) the flow cost has increased significantly; 2) Overseas brands cut prices to seize market share; 3) Product quality problems; 4) Stricter supervision leads to the new products being less than expected; 5) The rapid rise of cutting-edge brands intensifies competition; 6) If relevant materials and data are inconsistent with Proya Cosmetics Co.Ltd(603605) announcement, the announcement of the company shall prevail.
