\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Events
The company disclosed the main operating data from January to February 2022. According to the preliminary accounting of the company, the revenue from January to February 2022 was about 630 million yuan, with a year-on-year increase of about 30%, and the net profit attributable to the parent was about 60 million yuan, with a year-on-year increase of about 35%. During the 38 session of 2022, the main brand tiktok Proya Cosmetics Co.Ltd(603605) Tmall flagship store GMV grew by more than 200% over the same period, and the GMV platform grew by more than 100%.
Key investment points
2022 has made a good start, and the effect of Proya Cosmetics Co.Ltd(603605) brand’s big single product strategy continues to highlight: on the revenue side, the company achieved a revenue of about 630 million yuan from January to February of 22 years. On the basis of a year-on-year growth of 48.88% in 21q1, the company achieved a high-speed growth of about 30% from January to February of 22 years. We believe that the company’s revenue growth is mainly due to continuous improvement of Proya Cosmetics Co.Ltd(603605) brand large single product matrix, from cream category to cream, eye cream category, large single product strategy results have achieved good results, drive customer unit price and repeat purchase rate upward. On the net profit side, from January to February of 22 years, the company realized a net profit of about 60 million yuan, with a year-on-year increase of about 35%. The performance growth rate was faster than the revenue growth. The company’s operation quality and sales management efficiency continued to be optimized. Thanks to the excellent sales of large single products with higher gross profit level, the proportion of large single product revenue of tmall pingtaichung has increased to 55% in the first three quarters of 21 years.
The 38 quarter activities were blooming tiktok and the brand influence was further out of the circle: the company mainly took online channels, and the proportion of online business revenue was 81.85% in the three quarter of 21 years ago, with Tmall accounting for over 40%, and chattering accounted for over 10%, Jingdong accounting for 10%, vip.com accounting for 5% +. According to the “3. 8” battle report released by the company, in 2022, the 38 quarter, Proya Cosmetics Co.Ltd(603605) tiktok Tmall fifth, Tmall / Jingdong beauty first, Tmall official flagship store GMV grew by more than 200%, the shaking platform GMV grew by 100% over the same period, many stars, large single product sales results brilliant, double anti elite, ruby essence, source of repair essence. The cumulative sales of Yugan sunscreen exceeded 160000, 39000, 85000 and 280000 respectively. Based on the high growth of revenue from January to February, the company achieved another good performance during the March 8 Festival. It is expected that the high growth trend of 22q1 is expected to continue. In terms of marketing, during the festival, the company launched gender is not the boundary line, and Prejudice is the theme marketing activities. Offline, the company jointly launched a number of brands such as BabyCare, Little Swan and meituan takeout in Beijing, Shanghai, Hangzhou, Shenzhen and other cities. The topic has been read 290 million times, and the influence of Proya Cosmetics Co.Ltd(603605) brand has further emerged.
Caitang brand quickly built the company’s second growth curve. According to the “March 8” war report released by the company, during the March 8 event, Caitang Gmv increased by 400% year-on-year + and opened for 40 minutes, breaking through the Gmv of 38 full time last year. Star category seized several categories of Top, the master repair sector reclaimed high gloss category Top1, master makeup before the milk was awarded the makeup category Top4, double specular high gloss and high gloss category Top3, new defect Concealer sprint, Concealer category Top4. During the festival, the tiktok self seeding is the national makeup Top2, with a total of 60w+ breaking up, and sales increased by 1800%+ over the same period last year.
Investment suggestion: the company has a good start in 2022. The sales data of the March 8th Festival continues to increase, which verifies that the company’s large single product strategy continues to be fulfilled. With the successful incubation of more categories of large single products, the company is expected to continue to drive the improvement of profitability and repurchase rate. The company’s operating data from January to February slightly exceeded expectations. We raised the company’s profit forecast for 20222023. It is expected that the company’s earnings per share from 2021 to 2023 will be 2.91 yuan, 3.72 yuan and 4.66 yuan respectively. The closing price on March 9 corresponds to about 45 times of the company’s PE (22e), maintaining the “buy-b” proposal.
Risk tip: overseas brand promotion affects the competition of cosmetics market; Marketing promotion and brand cultivation may put pressure on the expense rate; The epidemic situation in China may be repeated.
