\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
The company released the operating data from January to February. From January to February 2022, the revenue increased by 30% to 630 million yuan, and the net profit attributable to the parent increased by 35% to 60 million yuan. The company’s large single product strategy has been recognized by consumers, new products have been continuously launched, and new brands have been continuously expanded. It is expected to further improve in the future and maintain the buy rating.
Key points
The large item matrix is constantly enriched, and the sales performance from January to February is bright. From January to February 2022, the revenue increased by 30% to 630 million yuan, accounting for 69.6% of the revenue in the first quarter of last year; The net profit attributable to the parent company increased by 35% to 60 million, accounting for 54.5% of the performance in the first quarter of last year. The high growth of income is mainly due to: 1) the continuous development of the original large single product Ruby series and double resistance series; 2) the source force repair series expands the source of repair cream to further improve the product matrix, and obtains consumers’ recognition with a series of products at the same time. 3) new bowling pin ampoule essence and bowling orange bottle VC ring. In addition, the business data from January to February showed that the growth rate of the company’s performance was higher than that of revenue, which reflected the significant strengthening of the company’s management and operation efficiency.
On the Queen’s day of March 8th, there are many brands, products and platforms, and the business data in the first quarter is expected to continue to be bright. During the 38 session of 2022, sales of brand names increased rapidly. Among them, the main brand Proya Cosmetics Co.Ltd(603605) Tmall official flagship store increased by 200% or more, and the turnover volume of tiktok platform increased by 100% or more. It was honored as Tmall beauty industry TOP5, national product beauty makeup TOP1, Jingdong national skin care TOP1. Among the star series products, the total sales volume of early C evening A group is over 78 thousand, the double resistance essence is over 160 thousand, the ruby essence is over 39 thousand, and the source power essence is over 85 thousand. The new brand, GMV, increased by 400%+ over the same period last year, and the top five products in the Tmall platform are the make-up industry, including the master dressing table, the master makeup front milk, the double specular gloss and the concealer disk. Combined with the operating data from January to February and the company’s brilliant achievements during the March 8 event, it is expected that the operating performance of Q1 will continue to shine.
The company’s main brand is steadily improving, the new brand continues to make efforts, the superposition management and operation efficiency continues to improve, and the future is still foreseeable. In addition to the existing large single product series, the company’s main brand has rich product reserves. In the future, it will continue to promote new products, and the upward growth of the main brand will bring a stable driving force; Caitang’s product series is perfect, and its product strength has been certified in the hot sale of the March 8th Festival. We look forward to continuous development. In addition, with the improvement of brand strength, the repurchase rate is driven upward, and the operation efficiency is continuously improved, which is expected to drive the net interest rate further upward.
Valuation
Under the current share capital, the earnings per share from 2021 to 2023 are expected to be 3 / 3.7 / 4.5 yuan respectively; PE was 56 / 45 / 37 times respectively, maintaining the buy rating.
Major risks
The loss of online traffic affects sales, the expansion of large single products does not meet expectations, and the launch of new brands is less than expected.
