\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
In 2022q1, the company’s predicted net profit attributable to the parent company increased by 35 ~ 45% year-on-year
The company announced that in the first quarter of 2022, the revenue reached 1.177 ~ 1.268 billion yuan, with a year-on-year increase of 30 ~ 40%. Compared with the historical average annual compound growth rate of 19 Q1 ~ 21 Q1 revenue of 18.77% (excluding the interference of 20q1 epidemic), the revenue growth of 22q1 was outstanding; The net profit attributable to the parent company was 148 ~ 159 million yuan, with a year-on-year increase of 35 ~ 45%. Based on the median value, the net profit rate attributable to the parent company in 2022q1 is estimated to be 12.56%, which is basically the same as the net profit rate in the first quarter of history (12 ~ 13% in 20q1 / 21q1).
The company had previously predicted that from January to February 2022, it would achieve 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%. We estimate that the company’s revenue in March 2022 will be 547 ~ 638 million yuan. Generally, due to the large promotion of 38 sections, it accounts for a high proportion in the first quarter. It is estimated that the revenue of a single month in March will increase by more than 30% year-on-year, the net profit attributable to the parent company will increase by more than 34% year-on-year, and the sales growth will accelerate month on month from January to February.
During the March 8th Festival, Gmv of Proya Cosmetics Co.Ltd(603605) tmall official flag store increased by 200% year-on-year, and Caitang Omni channel increased by 400% year-on-year+
During the March 8th festival in 2022, the sales of various brands of the company achieved rapid growth. By brand:
Main brand Proya Cosmetics Co.Ltd(603605) : Tmall official flagship store turnover (GMV) grew by more than 200% over the same period, and the shaking platform GMV grew by more than 100%. At the same time, according to the company’s war report, Proya Cosmetics Co.Ltd(603605) brand was honored with Tmall beauty industry TOP5, Tmall’s national product TOP1, Jingdong tiktok skin TOP1.
Color makeup brand Caitang: Omni channel Gmv increased by more than 400% year-on-year, and Gmv opened for 40 minutes, breaking through the whole period of March 8 last year. In Tmall platform, Cai Tang star single product sales rank in the forefront of many categories. The master repair sector has won the high gloss category TOP1, the master makeup front milk has been awarded the makeup category TOP4, the double specular high gloss and the high gloss category TOP3, the new Concealer disk is the concealer category TOP4.
The strategy of large single product has been verified and the effect has been continuously released. We look forward to the steady growth of performance in 22 years
In 2022, the company continued to promote the “6 n” strategy (new consumption, new marketing, new organization, new mechanism, new technology and new intelligent manufacturing), focused on improving the competitiveness of product differentiation, implemented the “big single product strategy”, and the sales momentum was steadily improving. During the March 8th Festival, the brand sales also achieved rapid growth, which promoted the company to achieve stable growth in the first quarter of 2022. The company’s sales of large single products continued to be gratifying. For example, the main products of Tmall official banner were sunscreen, double anti essence 2, ruby cream 100 thousand, 100 thousand +, 60 thousand +, and the company continued to enrich the product line. In March 22, the white crystal diamond cream series was produced and the main products were whitening and freckle elimination.
We believe that during the March 8th promotion, the company achieved brilliant performance in sales data with high-quality products and outstanding marketing strategy. The company’s main brand Proya Cosmetics Co.Ltd(603605) large single product strategy is effective, and small brands Caitang, yuefuti and or are expected to open up growth space. In the future, as the product power continues to rise, the cost scale effect is expected to be reflected and promote the increase of net interest rate. We maintain the company’s profit forecast for 21-23 years. According to the latest share capital, EPS is 2.93/3.68/4.57 yuan respectively, corresponding to 49 times and 39 times of PE in 22 and 23 years respectively, maintaining the “buy” rating.
Risk tip: the impact of the epidemic in China exceeded expectations, resulting in weak terminal consumption; Channel expansion, marketing launch effect and new product launch effect are less than expected; The effect of small brand cultivation is less than expected; Improper grasp of industry trend changes; Improper cost control.
