\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Events
The company disclosed the announcement of pre increase of performance in the first quarter of 2022. It is estimated that the operating revenue in the first quarter of 2022 will increase by 30% – 40% year-on-year, and the net profit attributable to the parent company will be 148159 million yuan, with a year-on-year increase of 35% – 45%.
Key investment points
The 38 quarter will drive 22Q1 revenue growth faster than 1-2 months, and high quality growth will continue to be fulfilled: revenue end, 22 years and 1-2 months, the company achieved revenue of about 630 million yuan, an increase of about 30% over the same period. In 2022, during 38 days of activity, the main brand Proya Cosmetics Co.Ltd(603605) official flagship store GMV increased by 200% over the same period, while the shaking platform GMV grew by more than 100% over the same period, and 22Q1 was promoted by the excellent performance of “3. 8” section. The Proya Cosmetics Co.Ltd(603605) tiktok was also a new growth company. The revenue is expected to increase by 30% – 40% year-on-year to RMB 1.18-1.27 billion. On the net profit side, the company realized a net profit attributable to the parent company of about 60 million yuan from January to February of 22 years, with a year-on-year increase of about 35%. 22q1 is expected to realize a net profit attributable to the parent company of 148159 million yuan, with a year-on-year increase of 35% – 45%. Referring to the company’s 22q1 performance forecast center and in combination with the announcement of main business data from January to February of 22 years, we estimate that the company’s 22q1 net interest rate is about 12.5%, with a year-on-year increase of about 0.7pct. The revenue and net profit attributable to the parent company in March are 595 million yuan and 94 million yuan respectively, with a net interest rate of about 15.7%. The company continues to maintain high-quality growth.
Continue to promote the “6 n” strategy, and the company significantly outperformed the cosmetics market from January to February of 22 years: in 2021, the company proposed the “6 n” strategy, the core of which is based on the building of six abilities of “new consumption, new marketing, new organization, new mechanism, new technology and new intelligent manufacturing”, enabling and incubating “different” products to meet the “different” needs of “different” consumers. In 22 years, the company continued to promote the “6 n” strategy, Efforts should be made to enhance product differentiation competitiveness, enhance the expansion of large single product categories, and extend from cream products to eye cream, face cream and mask products. In the three quarter of 21 years ago, the company accounted for more than 20% of the Proya Cosmetics Co.Ltd(603605) ‘s main brand revenue. Tmall platform accounted for more than 55% of the total single product revenue. The proportion of large single products accounted for over 70% during the double 11 period. During the 38 period of this year’s activities, the cumulative sales volume of double anti essence, ruby essence, source power repair essence and feather feeling sunscreen products exceeded 160 thousand, 39 thousand, 85 thousand and 280 thousand respectively. According to the National Bureau of statistics, from January to February of 22 years, the Limited cosmetics agency was RMB 61.8 billion, with a year-on-year increase of 7.0%. In the off-season of cosmetics consumption, the company’s revenue growth significantly outperformed the market, and the large single product strategy continued to be fulfilled.
Investment suggestion: the growth rate of the company’s 22q1 revenue and net profit attributable to the parent company is in line with the expectation and continues the high-quality growth. We maintain the company’s profit forecast from 2021 to 2023. It is estimated that the company’s earnings per share from 2021 to 2023 will be 2.91 yuan, 3.72 yuan and 4.66 yuan respectively. The closing price on March 25 corresponds to about 49 times of the company’s PE (22e), maintaining the “buy-b” suggestion.
Risk tip: overseas brand promotion affects the competition of cosmetics market; Marketing promotion and brand cultivation may put pressure on the expense rate; The epidemic situation in China has been repeated.
