\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Main points:
Events
The company issued a pre increase announcement of performance in the first quarter of 2022. It is expected to realize a net profit attributable to the parent company of 148 million yuan to 159 million yuan, with a year-on-year increase of 35% to 45%.
The company’s “6 n” strategy continued to advance, and the sales of large single products continued to improve
The company continues to promote the “6 n” strategy of new consumption, new marketing, new organization, new mechanism, new technology and new intelligent manufacturing. The product differentiation competitiveness is gradually highlighted. The company expects the revenue to increase by 30% ~ 40% year-on-year in 2022q1. The results of the strategy of large single products are outstanding. During the 38 Festival, the cumulative sales of Proya Cosmetics Co.Ltd(603605) “morning C night a” trump suit exceeded 78000 pieces; The total sales volume of “anti double cream” and “Ruby essence” of the first year old product were 160 thousand and 39 thousand respectively. Proya Cosmetics Co.Ltd(603605) “source power essence” accumulative total sales volume reaches 85 thousand, “feather sense sunscreen” accumulative total sales volume amounts to 28 yuan.
In March, the single month continued high growth, and 38 online platforms performed brilliantly
According to the announcement of the company’s operating data from January to February, the company achieved a total operating income of about 630 million yuan from January to February, with a year-on-year increase of about 30%, and a net profit attributable to the parent company of about 60 million yuan, with a year-on-year increase of about 35%. It can be said that the company’s monthly revenue in March increased by 30% ~ 52%, the net profit attributable to the parent increased by 34% ~ 51%, and the performance continued to increase in March. According to the company’s official war report, during the “March 8” festival, the company’s tmall channel maintained a high growth, and the transaction amount (Gmv) of the main brand Proya Cosmetics Co.Ltd(603605) tmall’s official flagship store increased by more than 200% year-on-year; The flagship store Gmv of Caitang tmall, a cutting-edge brand, increased by 400% year-on-year, and opened for 40 minutes, breaking through the full-time Gmv of March 8 last year. Tiktok channel tiktok burst, Proya Cosmetics Co.Ltd(603605) GMV platform increased by 100% over the same period. During the Caitang 38 event, the cumulative viewing volume of self broadcast exceeded 60W +, and Gmv increased by 1800% year-on-year.
Investment advice
Thanks to strong R & D support, the company’s main brands have been upgraded and new brands have been added one after another, driving high performance growth, category expansion and matrix improvement. With the continuous consolidation of online operation capacity, explosive products quickly break the circle, the flow is natural, and strengthen brand construction. Online as the main line and offline parallel sales mode, while enjoying the dividend of e-commerce, pay attention to the marginal change of traffic structure, and transition from traditional e-commerce to short video emerging platform, highlighting the first mover advantage. The current price of PE shares is expected to be 51.91 times that of 2023 shares and 43.62 times that of 2022 shares, respectively. Maintain the “buy” rating.
Risk tips
Industry competition intensifies; Channel expansion is less than expected; The marketing effect is not as good as expected.
