\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Matters:
Company announcement: from January to February 2022, the company’s sales momentum will improve and achieve stable growth. After preliminary accounting, from January to February 2022, the company achieved a total operating revenue of about 630 million yuan, 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%. During the 38 session of March 2022, sales of brand names increased rapidly. Among them, the turnover of main brand Proya Cosmetics Co.Ltd(603605) Tmall official flagship store (GMV) increased by more than 200%, and the turnover volume of tiktok platform (GMV) increased by 100% over the same period. Guoxin retail view: as a leading brand of domestic cosmetics, the company has strong product strength, brand power and multi-channel operation capability. Specifically, 1: channel side: online tiktok is expected to focus on Tmall platform and actively expand the platform of shaking platform, and the offline channel is expected to achieve gradual growth throughout the year after adjustment. 2) Product side: continue to follow the route of large single products, actively expand new series such as whitening on the premise of consolidating and upgrading the original two mature series products, so as to continuously promote the increase of brand volume and price; 3) Brand side: actively promote multi brand construction, among which Caitang new brand has excellent performance and is expected to gradually grow into the second growth pole of the company. On the whole, since last year, under the background of the overall growth of the industry slowing down, the company has still achieved growth higher than the average level of the industry relying on accurate delivery layout and continuously upgraded product power. In the future, on the basis of consolidating the advantages of channels and products, the company will increase the group layout of multiple brands, so as to achieve medium and long-term sustainable iterative growth. We temporarily maintain the company’s EPS of 21-23 years = 2.86/3.47/4.31 yuan / share, corresponding to PE = 58 / 48 / 38 times, and maintain the “buy” rating.
Comments:
Revenue and net profit grew steadily
From January to February 2022, Proya Cosmetics Co.Ltd(603605) company’s sales momentum improved and achieved stable growth. After preliminary accounting, from January to February 2022, the company achieved a total operating revenue of about 630 million yuan, 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%. Since the second half of last year, under the background of the slowdown of the overall growth rate of the industry, the company has still achieved growth far better than the average level of the industry through active product upgrading and effective precision delivery.
38 battle report: the big pieces are brilliant, and Caitang makes further efforts
1. Main brand Proya Cosmetics Co.Ltd(603605) : outstanding performance of large single products and advanced marketing
The tiktok Proya Cosmetics Co.Ltd(603605) performance is 38: 1) Tmall’s base market is increasing, and its tiktok continues to be heavy: the main brand Proya Cosmetics Co.Ltd(603605) is Tmall’s beauty industry TOP5, ranking the TOP of Tmall’s domestic products, and Jingdong’s home care ranking TOP1. Tmall grew by 200%+ compared to the same period last year, and the growth of the voice was up 100%+ compared with the same period last year. 2) a number of star products are selling brightest: the trump card set “early C night A” total sales volume 78 thousand + pieces, double anti essence cumulative sales 160 thousand + branch, ruby essence cumulative sales 39 thousand + branch, source power essence cumulative sales volume 85 thousand + branch, feather sense sunscreen cumulative sales volume 280 thousand + branch; 3) Continuous improvement of marketing: 38 specially planned the theme film “lion awakening girl”, with a topic heat of more than 120 million, double growth of brand exposure and public praise, offline joint advertising posters, combined with BabyCare, Little Swan, meituan takeout and other brands, and launched in many landmarks of first and second tier cities; Tiktok tiktok tiktok: 4) tremble sound: further efforts: the official voice of the master is 18 hours in March 8th, and it ranks the top in the blue V list of TOP1. Social networking has reached 1000 people and multi platforms, and has been growing 450 million.
2. Guofeng color makeup brand Caitang: Based on the polishing of early-stage product strength, it is currently in rapid volume. During the March 8th Festival this year, the situation of Caitang brand is as follows: 1) the sales of Gmv increased by 400% year-on-year, and the sales exceeded 38 full-time Gmv in the whole year in 40 minutes; 2) star category gains several categories: TOP: the master repair sector is reclaimed by Gao Guang category TOP1, the master makeup milk is awarded the TOP4 of the makeup front category, the double specular high gloss and the high gloss category TOP3, the new Concealer disk sprints the concealer category TOP4; 3) tiktok live and tiktok self broadcast: during the period, the voice was self broadcast, which ranked the national makeup TOP2, and the total amount of watching was 60W+, and sales increased by 1800% over the same period last year.
Investment suggestion: the effectiveness of the large single product strategy has been further highlighted. The omni-channel operation ability + channel upgrading have helped the growth. As a leading brand of domestic cosmetics, the “buy” rating company has increased the creation of star single products and new brands under the changing situation of industry traffic last year. At the same time, it has actively grasped the incremental opportunities of the new e-commerce platform and achieved stable and rapid development of performance, This year, the industry continues to differentiate tiktok, and is expected to continue to deepen product strength, brand power and multi-channel operation capabilities. Specifically, 1: channel side: online is expected to focus on Tmall platform as the main force, and actively expand the platform of shaking platform, and the offline channel is expected to achieve gradual improvement throughout the year after adjustment. 2) Product side: continue to follow the route of large single products, actively expand new series such as whitening on the premise of consolidating and upgrading the original two mature series products, so as to continuously promote the increase of brand volume and price; 3) Brand side: actively promote multi brand construction, among which Caitang new brand continues to perform well and is expected to gradually grow into the second growth pole of the company. We temporarily maintain the company’s EPS of 21-23 years = 2.86/3.47/4.31 yuan / share, corresponding to PE = 58 / 48 / 38 times, and maintain the “buy” rating.
Risk tips
The risk of changes in consumer demand, the risk of changes in relevant policies in the cosmetics industry, the risk of decline in e-commerce growth, and the risk that the launch of new products is less than expected.
