\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Matters:
Company announcement: from January to February 2022, the revenue will reach about 630 million yuan, with a year-on-year increase of about 30%; The net profit attributable to the parent company was about 60 million yuan, with a year-on-year increase of about 35%.
Ping An View:
The company’s revenue grew steadily and the profit side grew faster: the company achieved a revenue of about 630 million yuan from January to February 2022, with a year-on-year increase of about 30%, and the sales momentum was good; The net profit attributable to the parent company was about 60 million yuan, with a year-on-year increase of about 35%. The growth rate of the profit side was higher and the overall development was stable.
The “March 8th Festival” activity showed a brilliant performance, and under the support of product strength, multi brands and multi platforms blossomed: according to the company’s war report, during the March 8th festival in 2022, the company’s main brand Proya Cosmetics Co.Ltd(603605) , and color Tang, a makeup brand, achieved brilliant results. Among them, Proya Cosmetics Co.Ltd(603605) brand Tmall official flagship store GMV with 200%+, shaking platform GMV with 100%+, Tmall beauty industry TOP5, Tmall makeup tiktok TOP1, Jingdong home products skin care TOP1. Large single product C early evening A sets, double anti essence, ruby essence, source power repair essence 3.8 activities during the cumulative sales volume of more than 7.8, 16, 3.9, 85 thousand, led brand sales growth. During the March 8th festival of Caitang brand, the Gmv of tmall’s flagship store increased by 400% + and opened for 40 minutes, breaking through the full-time Gmv of March 8th last year and gradually getting rid of the influence of super head events. The large single product master repair disc replaces the glistening category TOP1, the master makeup front milk is awarded the makeup category TOP4, the double specular high gloss and the high gloss category TOP3, the new Concealer disk breaks into the concealer category TOP4, is expected to become the next main single product. Cai Tang brand vibrate channel to usher in the outbreak, during the 3 / 8 activity, the total amount of self broadcast tiktok exceeded 600 thousand, GMV increased 1800%.
Profit forecast and Valuation: Based on the company’s sales situation, we fine tune the relevant profit forecast. It is predicted that the company’s revenue from 2021 to 2023 will be RMB 4.726 billion, RMB 5.806 billion and RMB 6.998 billion (originally predicted to be RMB 4.606 billion, RMB 5.637 billion and RMB 6.843 billion), and the net profit attributable to the parent company will be RMB 591 million, RMB 757 million and RMB 956 million (originally predicted to be RMB 588 million, RMB 7.37 million and RMB 908 million), corresponding to the PE of the current stock price respectively 44.4x and 35.1x. The company’s large single products have a good development momentum, and the “March 8” activity has performed well, maintaining the “recommended” rating.
Risk tips: 1) industry competition intensifies the risk. 2) The promotion of new products is not as risky as expected. 3) The development of cosmetics brand is not as good as expected. 4) Risk of tightening national policies.
