\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Event: the company released the business data announcement from January to February 2022. During the period from January to February, the company achieved a total operating revenue of 630 million, a year-on-year increase of 30%; The net profit attributable to the parent company was 60 million, with a year-on-year increase of 35%.
Proya Cosmetics Co.Ltd(603605) officially released the March 8 war report, and the sales of all brands of the company have achieved rapid growth. (1) Proya Cosmetics Co.Ltd(603605) : 1. Speed: the main brand Proya Cosmetics Co.Ltd(603605) Tmall grew by more than 200% over the same period, and the number of trembling sound increased by over 100%. Sales volume entered the top five of Tmall cosmetics industry, ranking first among Tmall’s national makeup and Jingdong tiktok skin care rankings. ② Large items: a number of star large items have achieved brilliant sales results. The sales of “big C” brand “78 thousand A” is excellent. ③ Marketing: brand exposure and word-of-mouth growth. 3.8 specially planned the theme short film “lion awakening girl”, deepened the brand connotation, and the topic heat broke 120 million, becoming a phenomenal marketing case; Offline joint advertising posters have been put into many city landmarks, and the brand influence has been further expanded. Tiktok tiktok: tiktok, the first official of the blue V ranking, is the first to shake the sound of the official self broadcasting. Thousands of master and multi platform have strong grass planting, and 450 million of them are interactive. (2) Caitang: ① growth rate: Caitang Gmv increased by more than 400% year-on-year, and sold for 40 minutes, breaking through the full-time Gmv of 3.8 last year. ② Large single product: multi product data is beautiful. Master’s repair sector replaces Gao Guang category. First, the master’s makeup is fourth before the make-up. Third of the highlights are high gloss, and the new Concealer is fourth. ③ Self broadcast: Tang Yi, the founder of the brand, flew to tmall store for self broadcast, ranking first in the list of cutting-edge beauty makeup on that day; Tiktok self made second place in national makeup, 600 thousand times the total viewing volume, GMV increased 1800% over the same period last year.
The big item strategy has been effective, and the second brand curve represented by Caitang has achieved rapid growth. (1) large single products: Ruby essence, double resistance essence and so on. The sales of many large single products will increase. In the future, besides the promotion and promotion of the existing large single products, the introduction of new large single product series, such as whitening, facial mask and so on, will contribute to the brand new increment. With the acceleration of online channel expansion, it is expected that the proportion of large single product revenue will continue to increase. (2) The second brand curve: the brand positioned as “Chinese style + makeup artist” continues to adjust the team structure, the growth rate continues to be strong, and it is expected to continue to increase in volume during the year; Scalp care brand off & relax is poised to open up growth space in the new track.
Profit forecast and investment rating: the company is a popular cosmetics group with flexible organization and leading efficiency in China, with leading multi platform layout and smooth implementation of large single product strategy. We maintain the parent net profit forecast of 583 / 718 / 889 million yuan from 2021 to 2023, with a year-on-year increase of 22.6% / 23.1% / 23.8%. The corresponding dynamic PE is 58 / 47 / 38 times, maintaining the “overweight” rating.
Risk warning: industry competition intensifies; The expansion of new brands is less than expected.
