\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
The company released the forecast of Q1 performance increase in 2022. It is expected that the net profit attributable to the parent company will be 148159 million yuan, with a simultaneous increase of 35% – 45%, with a median of 153.5 million yuan and a simultaneous increase of 40%, slightly exceeding the market expectation. It is expected that the proportion of large single products will increase and the channel refined operation will increase the net interest rate; The estimated operating income is 1.177-1.268 billion yuan, an increase of 30% – 40% at the same time; In addition, non recurring gains and losses have no significant impact on the company’s performance pre increase.
The company previously released the announcement of main business data from January to February. After calculation, we expect to achieve a revenue of about 550640 million yuan in March 2022, an increase of 30% – 51.5% at the same time; The net profit attributable to the parent company was RMB 90-100 million, an increase of 34.5-51.3% at the same time.
Online sales continued to perform well, and the year-on-year growth rate of online sales is expected to be higher than that of the company as a whole. According to the business consultants and flying melon data, as of March 26th, the company’s online multi platform total increased double digit growth, of which Tmall tiktok + tremble total billion yuan.
The performance of March 8th festival in 22 was brilliant, 1) Proya Cosmetics Co.Ltd(603605) : tmall Gmv increased by more than 200% year-on-year, tmall beauty industry ranked the top five and tmall domestic beauty ranked the first; Tiktok GMV grew by 100% over the same period. Jingdong National Skin Care ranked first. 2) Caitang: Gmv increased by more than 400% year-on-year, and sold for 40 minutes, breaking through the full-time Gmv last year. The “master grooming disc” ranked first in the high light category.
Proya Cosmetics Co.Ltd(603605) brand marketing ability continues to deepen. Through emotional marketing, we continue to strengthen consumers’ minds and improve brand voice. In important festivals and promotions, the company has created a circle of topical topics and advertisements for many times, conducted dialogue and discussion with consumers, and narrowed the distance with young consumers, such as March 8th festival of 21, 520, school season, world mental health day, etc. The March 8th festival of 22 continued last year’s topic of “gender is not the boundary line, prejudice is” and specially planned the short film “lion awakening girl”. The topic popularity exceeded 120 million, and the brand exposure and reputation increased. In the future, we will continue to carry out emotional communication and brand building around the “spirit of discovery”, focus on topics closely related to the target audience, carry out content building and mass communication, and further break the circle marketing around large single products.
The product strength, marketing power and brand strength of the company’s large single products have been continuously strengthened, and the number of large single products represented by the “C A” has been brighten and steadily improved. Double resistance, ruby and source essence have been driving the series of products gradually, and the competitiveness of the products has been continuously improved in the future. Meanwhile, we must continue to deepen the channel operation and expand the business of tiktok shop platform, and will continue to focus on the future.
The company continues to promote the “6 n” strategy (new consumption, new marketing, new organization, new mechanism, new technology and new intelligent manufacturing), and the effectiveness of multi-dimensional strategies such as products, channels and marketing is gradually verified, which is expected to build a new domestic cosmetics industry platform. It is estimated that the net profit in 202123 will be RMB 610 / 760 / 910 million, maintaining the “buy” rating.
Risk warning: macroeconomic downside risk; The risk of intensified industry competition; The risk that the new products are not listed as expected; The performance forecast is the preliminary calculation result. Please refer to the quarterly report of year 22
