\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Performance review
3.27 the announcement predicts that 1q22’s revenue will increase by 30 ~ 40% at the same time, and the net profit attributable to the parent company will be 148 ~ 159 million yuan, increasing by 35 ~ 45% at the same time, slightly exceeding the market expectation.
In terms of monthly split, the proportion of sales was greatly promoted in March, and the growth was accelerated from January to February. March 22 contributed 46 ~ 50% of Q1 revenue (year-on-year + 0 ~ 4pct) and 60 ~ 62% of net profit (+ 0 ~ 2pct). The revenue increased by about 30% from January to February, and it is estimated that the revenue increased by 30% ~ 52% in March; The net profit attributable to the parent company increased by about 35% from January to February, and it is estimated that it will increase by 34% ~ 51% in March; The growth rate in March increased month on month from January to February, which was mainly due to the beautiful online performance of the “3.8” promotion. After the “3.8” promotion, the epidemic in March had little impact on the offline. At the same time, the offline proportion was not high and was expected to shrink further.
The large item strategy has achieved remarkable results, and the profitability has increased slightly year-on-year and month on month. 22q1 net interest rate is about 12.5% (year-on-year + 0.41 ~ 0.44pct), including 9.52% (+ 0.35pct) from January to February and 15.5% ~ 16.1% (+ 0 ~ 0.5pct) in March.
Business analysis
22 years “3.8” to promote the company’s brand sales.
Main brand: Tmall flagship store GMV increases 200%+, Tmall beauty makeup TOP5, Tmall domestic product beauty brand TOP1, trump suit “early C A A”, double anti essence, ruby essence, source power essence cumulative sales volume of 7.8+ 10000, 16+ million, 3.9+ million, 8.5+ million; Jingdong Gmv increased by 100% and Jingdong domestic skin care products ranked top 1; Tiktok GMV increased by 100%+, ranked second, shops selling products for compact muscle resistance, old and old clothes and other classic products, source of essence and other large products also began to exert strength.
Caitang: Gmv of tmall’s flagship store increased by 197%, and the star product master grooming disc won the top 1 of the high gloss category, the master pre makeup milk won the top 4 of the pre makeup category, and Shuangpin high gloss ranked the top 3 of the executive category; Tiktok sales ranked third, a significant increase from last year, of which tiktok accounted for 25%, which is higher than the previous year. It is expected that the brand will continue to improve and the profit level of the channel will be improved.
Investment advice
In the past 22 years, the company continued to promote the “6 n” strategy, the main brand large single product strategy continued to be verified, the 22-year bowling series, and the second growth curve of Caitang gradually formed. The theme marketing activity “lion awakened girl” has seen a double growth in the circle, brand exposure and word-of-mouth. Maintain the EPS forecast of 2.92/3.59/4.39 yuan in 21-23 years, corresponding to 62 / 50 / 41 times of PE in 21-23 years, and maintain the “buy” rating.
Risk tips
New product sales / channel expansion / marketing launch is less than expected; Weak retail terminal
