Announcement 1: from January to February of Proya Cosmetics Co.Ltd(603605) 22, the income / net profit attributable to the parent company increased by 30% / 35%.
Performance review: from January to February of 22 years, Proya Cosmetics Co.Ltd(603605) achieved a revenue of 630 million yuan (+ 30%); The net profit attributable to the parent company is about 60 million yuan (+ 35%). According to the backward growth of 22 years, Proya Cosmetics Co.Ltd(603605) from January to February 2021, the revenue is 480 million yuan, and the net profit attributable to the parent is about 40 million yuan, so the revenue in March 2021 is 420 million yuan, and the net profit attributable to the parent is about 70 million yuan. The monthly income / net profit attributable to the parent company in March accounted for 47% and 60% of the January March period of 21 years.
Performance Outlook: Proya Cosmetics Co.Ltd(603605) this year’s 3.8 activity sales exceeded expectations, which is expected to drive the first quarter report to exceed expectations. Achievements include Tmall official flag growth 200%+, jitter growth 100%+, Tmall beauty TOP1, Jingdong skin care TOP1, popular products C A/ A/ double anti acne tiktok sales volume over 7.8/16 million.
Interpretation of core reasons for performance exceeding expectations:
1) the large single product strategy was successful, extending the product life cycle and significantly increasing the customer unit price. With C A as the representative, the largest single product hatched successfully. According to the reptile data, we judged that the proportion of the essence of Tmall channel increased, and drove the unit price from 100 yuan to 200 yuan + last year.
2) actively tiktok channels bring new increments. In early 2021, tiktok, Proya Cosmetics Co.Ltd(603605) , was the first representative of the “smell sensitive” Chinese product, and was the first to be stationed in the jute. According to the reptile data, we tiktok Proya Cosmetics Co.Ltd(603605) in 2021, accounting for 10%+, and the ratio is expected to increase in 2022.
3) accelerate the incubation of new brands. Caitang, a cutting-edge cosmetics brand, is growing rapidly. It is expected that its revenue will exceed 200 million yuan in 2021 and is still expected to maintain rapid growth in 2022.
Announcement 2: Lushang Health Industry Development Co.Ltd(600223) 21 January February cosmetics revenue + 147%.
Performance review: from January to February 2022: the revenue of cosmetics sector was 220 million yuan, a year-on-year increase of 147%; The revenue of raw materials and additives (mainly hyaluronic acid) was 45.17 million yuan, a year-on-year increase of 12%. Performance Outlook: it is estimated that the cosmetics revenue will be about 1.5 billion yuan in 2021 (600700 million yuan for Yilian and 7-8 for Dr. yu’er)
100 million yuan (100 million yuan for other brands), and the net interest rate remains at about 12%; Looking forward to 2022, cosmetics are still expected to achieve rapid growth.
Interpretation of core reasons for performance exceeding expectations:
1) the new channels such as jitter and Jingdong are beyond expectation: on the one hand, the company’s main brand, Dr. Yi Lian and Dr. J. Le, maintain steady growth in Tmall tiktok; Tiktok tiktok, on the other hand, usually sells at $100200 per unit price. The company’s marketing strategy and brand positioning are suitable for the current tiktok playing. Therefore, some traffic switches to jitter, and the channel is excellent as a new channel to further increase the growth rate. In addition, Yilian Jingdong also performed well. Last year, Yilian won the top 3 of Jingdong beauty category on double 11.
2) strategic support of the company: in January 2022, the company changed its leadership, and Jia Qingwen, the former general manager of Freida, served as the new chairman, which means that the company will continue to scale up the great health cause in the future and pay more attention to the layout of cosmetics + medicine.
3) further stimulate the enthusiasm of employees: in December 2021, the subsidiary Freda Biology (responsible for cosmetics business) introduced war investment, and the equity structure changed to: 6 Shenzhen Topway Video Communication Co.Ltd(002238) 2.42% + 16.9% of 5 war investment (Tencent, Hangzhou Onechance Tech Corp(300792) subsidiaries, etc.) and 0.68% of 2 employee stock ownership platforms. Cosmetics introduced war investment and overweight employee equity binding, superimposed the excess profit sharing mechanism and flexible KPI assessment previously implemented by the company, and further aligned the incentive system with marketization.
Announcement 3: Bloomage Biotechnology Corporation Limited(688363) 22 from January to February, the total operating revenue was about 640 million yuan, an increase of about 55% year-on-year.
Performance review: the annual income of 21 years was 4.95 billion yuan and the net profit attributable to the parent was 780 million yuan. Among them, functional skin care products increased by 147% year-on-year. From January to February of the year, the income was 640 million yuan, an increase of 88% year-on-year
Performance Outlook: the revenue growth from January to February of 22 years reached 55%, which is expected to be driven by the high growth of functional skin care sector. The brand building of the company’s four major skin care brands has achieved remarkable results. Runbaiyan and kuadi are beginning to take shape. Mibel, which locates sensitive muscles, and biomeso, which locates “ingredient party”, are growing rapidly. The company has a vibrant channel, and Bloomage Biotechnology Corporation Limited(688363) beauty store sells 4 major brands, and 21 years are tiktok. Looking forward to 2022, the functional skin care sector is expected to maintain a high growth.
The above three announcements highlight the high growth of high-quality cosmetics companies, for which we think: 1) β： The reform of cosmetics pattern starts from the peaking of dividends in old channels and the outbreak of dividends in new channels
Tao or high β Properties. Once the channel change appears, whoever first infiltrates into the new channel will be the best to win this round of rapid growth. Down to earth, short Kwai, tiktok, and fast track, the beauty of the skin and makeup are natural, and are suitable for the first time. The 2021 products are more permeable with the “touch the ground and understand the human feelings”. Tiktok and Kwai Fu are still new ways of exploring. Now, who is the first to explore and mature, we hope to enjoy this channel bonus. It is suggested to pay attention to the new opportunities for brand rise under the background of a new round of channel reform.
\u3000\u30002） α： R & D endorsement + channel development + management empowerment are all important to the brand α Property, industry growth differentiation, strong after the tide washes the sand α Only companies with attributes can remain invincible.
Risk warning: the risk of the epidemic affecting the operation; The risk of intensified market competition; The risk of strategic mistakes of the company.
