\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
The company released the performance forecast, and it is expected to realize the net profit attributable to the parent company of 148 million yuan to 159 million yuan in 2022q1
The company released the performance forecast: in 2022q1, it is expected that the operating revenue will increase by 30% – 40% year-on-year, and the net profit attributable to the parent company will reach 148159 million yuan (a year-on-year increase of 35% – 45%), and the performance will achieve rapid growth. We believe that the company, as a leading brand of domestic cosmetics, has continuous inspection of large single products and multi-channel logic, outstanding core competitiveness, and is expected to benefit significantly under the background of stricter industry supervision. We keep the profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 585 / 738 / 913 million, corresponding to EPS of RMB 2.91/3.67/4.54, and the current share price corresponding to PE of 63.3/50.2/40.6 times, maintaining the “buy” rating.
In 2022q1, the company’s performance is expected to increase by 35% – 45% year-on-year, and the growth rate of revenue and performance increased month on month in March
On March 10, the company released the operating data from January to February. From January to February, the company realized an operating revenue of about 630 million yuan (a year-on-year increase of about 30%), and a net profit attributable to the parent company of about 60 million yuan (a year-on-year increase of about 35%); On March 28, the company released the performance forecast of the first quarter report. On the whole, the revenue and performance increased month on month. We expect to mainly benefit from the growth of brand sales in the March 8th Festival. In 2022, during the Queen’s day, according to the official newspaper, the sales of Tmall Proya Cosmetics Co.Ltd(603605) increased by 200%+ compared with the same period, and the growth of the voice was increased by 100%+ compared with the same period. The ranking of Tmall ranked the highest in the world of Tmall’s domestic cosmetics and the Jingdong’s ranking of domestic products. The sales volume of the “C C A” tiktok was over 78 thousand. Caitang, its cosmetics brand, also performed well (Gmv achieved a year-on-year increase of 400% +).
The company’s “6 n” strategy continues to be promoted, and large single products and multi-channel logic continue to be tested
The company is a steady growth leader in domestic cosmetics. In 2022, it continued to promote the “6 n” strategy (new consumption, new marketing, new organization, new mechanism, new technology and new intelligent manufacturing), with outstanding core competitiveness. Product end: we anticipate that the proportion of large single products represented by double resistant essence will continue to improve, and the new products such as feather feeling and sun protection will be released. Channel side: Kwai tiktok, such as Tmall, has maintained steady growth in traditional e-commerce channels, and has been booming with new channels such as jitter and fast hand. Brand side: the company’s Caitang brand is growing rapidly and is expected to contribute to the increment. At the industry level, under the background of channel flow reform and strict supervision of cosmetics, the company is expected to continue to increase its market share with high-quality large single products and strong channel operation ability.
Risk tips: the epidemic repeatedly affects demand, market competition intensifies, and the promotion of new products is less than expected.
