\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Event description
The company issued the annual report of 2021 and the report of the first quarter of 2021, and achieved an operating revenue of 4.633 billion yuan / + 23.47% in 2021; The net profit attributable to the shareholders of the listed company was 576 million yuan / + 21.03%. 21q4 achieved a revenue of 1.621 billion yuan / + 10.92%, and a net profit attributable to the parent company of 212 million yuan / + 10.90%; 22q1 achieved a revenue of 1.254 billion yuan / + 38.53%, and a net profit attributable to the parent company of 158 million yuan / + 44.16%.
Event comments
In 21 years, the revenue and net profit grew rapidly, and the online business drove the high growth of 22q1 performance. In terms of revenue, in 2021, the company achieved a main business revenue of 4.62 billion yuan, a year-on-year increase of + 23.28%. The sales revenue has maintained a steady and rapid growth in the past two years. Quarterly, affected by the base, the company's revenue growth slowed down gradually. 22q1 revenue was + 38.53% year-on-year, mainly affected by the growth of online direct channel revenue. In terms of net profit, it achieved steady growth in 21 years, with a year-on-year increase of + 21.03%, of which the growth rate of Q4 decreased by + 10.90%, which was mainly affected by the decline of agent cross-border brand sales. 22q1 net profit increased by 44.16% year-on-year, mainly due to the rapid growth of income and gross profit and the increase of minority shareholders' profit and loss.
The skin care category grew steadily and rapidly, the proportion of color cosmetics increased, and the growth rate of Caitang was high. By category, the company's skin care / make-up / other revenue in 2021 was RMB 3.978/6.18/0.24 billion respectively, with a year-on-year increase of + 22.70% / + 32.97% / - 41.05%, of which skin care accounted for 86.1%, maintaining a steady and rapid growth, and the growth rate was higher than that of the same period last year. Cosmetics accounted for 13.38%, the growth rate was higher than that of skin care, and the proportion increased. In terms of brands, the company's own brand achieved a revenue of 4.484 billion yuan in 21 years, a year-on-year increase of +26.63%, of which Proya Cosmetics Co.Ltd(603605) caitang / other revenue was 38.29/246409million yuan respectively, a year-on-year increase of +28.25%/+103.48%/-5.96% respectively, and the revenue share was 82.87%/5.33%/8.85% respectively. The revenue share of main brands Proya Cosmetics Co.Ltd(603605) n maintains stable growth, and Caitang has a high growth rate. In terms of agency brands, the scale of cross-border agency brands was 136 million yuan, with a year-on-year revenue of - 34.04%. 22q1's skin care / make-up revenue was 1.093157 billion yuan respectively, with a year-on-year increase of + 45.9% / + 6.07% respectively. Skin care achieved rapid growth.
The proportion of online channels and self broadcast has increased, and offline inventory has been actively removed to adjust the structure. By channel, the company's online / offline channel revenue in 2021 was 3.924 billion yuan / 696 million yuan respectively, with a year-on-year increase of + 49.54% / - 38.03% respectively, accounting for 84.93% / 15.07% respectively. In 21 years, the company's online growth slowed down compared with the same period of last year, but it still maintained a high level, and the proportion of online revenue continued to increase. On the online side, the company has consolidated the strategy of large single products on tmall and improved the refined operation; In the tiktok, the brand is self broadcast, and the self selling sales exceed the sales volume of the master, optimizing the product structure. Innovate the operation method in jd.com, optimize the goods structure and cost delivery. Offline channels are mainly affected by the epidemic, the decline of passenger flow, and the company takes the initiative to remove inventory, adjust and upgrade the existing outlets, reduce the number of outlets, and focus on expanding the high-quality department store system and improving the brand image.
High gross profit products drive the increase of gross profit margin, increase the investment in brand publicity and increase the cost. In terms of gross profit margin, the company achieved a gross profit margin of sales of about 66.56% in 21 years, with a year-on-year increase of + 2.94ct, of which the gross profit margin of skin care increased from + 3.56pct to 68.40%. The increase of gross profit margin is mainly affected by the company's strategy of mainly pushing up the gross profit of large single products, the increase of the proportion of online revenue and the higher than average gross profit margin of main brands. 22q1 company's comprehensive gross profit margin was 67.56%, year-on-year + 3.16pct. In terms of expense rate, the expense rate of the company during the 21 year period was 49.59%, with a year-on-year increase of + 2.69pct, which was mainly affected by the sales rate of + 3.09pct. The sales expenses in 21 years increased by 33.03% year-on-year, mainly due to the year-on-year increase of 36.45% in image publicity and promotion expenses in 21 years, and the brand reconstruction of Caitang kerev and yuefuti. The company's R & D rate in 21 years was 1.65%, with a year-on-year increase of -0.27pct, mainly due to the impact of the company's increasing R & D Co creation and cost to equity investment. The parent company's R & D rate in 21 years was 3.55%. The expense rate of 22q1 company during the period was 49.43%, with a year-on-year rate of -0.19pct, which was mainly affected by the management rate of -0.62pct, and the sales / R & D rate was + 0.65pct / + 0.44pct year-on-year.
Profit forecast, valuation analysis and investment suggestions: the company focuses on online channels, seizes the incremental bonus of short video live broadcast, deepens the strategy of large single products, continues to build a multi category and multi brand matrix, strengthens basic research and development and Research on functional raw materials, and synchronously improves the sales scale and influence of various brands. The company is expected to continue to benefit from the self broadcast bonus of the new media platform, continuously improve the large item matrix driven by R & D, and enhance brand stickiness. It is estimated that the EPS from 2022 to 2024 will be 3.58/4.43/5.56 yuan respectively, corresponding to the closing price of the company on April 21 of 181.36 yuan, and the PE from 2022 to 2024 will be 50.7x/40.9x/32.6x respectively, maintaining the "buy" rating.
Risk warning: overseas brand promotion affects the cosmetics market competition; Marketing promotion and brand cultivation may put pressure on the expense rate; Repeated outbreaks in China have an uncertain impact on business.
