\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Performance review
4.21 the company announced that the revenue in the 21st year was 4.633 billion yuan, an increase of 23.5% and the net profit attributable to the parent was 576 million yuan, an increase of 21.0%. Quarterly, the revenue of 4q21 ~ 1q22 increased by 10.92% / 38.53% and the net profit attributable to the parent increased by 10.90% / 44.16%. The slowdown of 4q21 was mainly due to the strategic contraction of agency business, and the performance of 1q22 returned to beautiful growth. The net interest rate of 1q22 in the 21st year was 12.43% and 12.63%, which remained stable.
Business analysis
In the past 21 years, online direct sales have grown beautifully, and 1q22 large single products have helped multi platforms: online sales accounted for 84.9% in the past 21 years, with a simultaneous increase of 49.54%, of which direct sales / distribution accounted for 60.7% / 24.3% and a simultaneous increase of 76.16% / 8.56%; Tmall / jitter / Jingdong accounted for 45%+/15%+/10%+, Tmall tiktok accounted for 58%. Tiktok tiktok + Jingdong + Tmall + Jingdong grew 40~50% year-on-year, Jingdong accounted for 20% of the largest single product, and the 30% increase in the second half of the year, and the sales of 1Q22 loud voice products increased to 30% and earnings increased. The online is expected to increase by 40% in 22 years. Offline has decreased by 38.0% in 21 years, of which daily chemical / other channels account for 10.8% / 4% and 40.5% / 30.5%; It is expected that the offline double-digit decline will occur in 22 years.
In the past 21 years, the main brands and Caitang have grown beautifully, 1q22 brands have turned losses more than expected, and the brand matrix has taken shape: in the past 21 years, the main brand has reached 3.83 billion yuan, with a simultaneous increase of 28.3%. In the past 22 years, based on Ruby + double resistance, we continued to promote bowling series at the beginning of the year, continuously upgrade sunscreen products, and launch new whitening products at the end of May; In the 21st year, Caitang was 246 million yuan, an increase of 103.5% at the same time; Other private brands were 410 million yuan, down 6.0% at the same time, and cross-border agent brands were 136 million yuan, down 34.0% at the same time. 22q1 Caitang / yuefuti / youzilai, etc. turned losses into profits.
The gross profit margin continued to rise, the expense rate increased in 21 years and was stable in 22q1. The gross profit margin of 4q21 ~ 22q1 is 69.92% (+ 3.48pct), 67.57% (+ 3.16pct). It has continued to increase since 3q20, mainly including the increase of online and self broadcast proportion + large single product strategy + iterative upgrading of core products; The sales expense rate of 21 years was 42.98% (+ 3.09pct), mainly due to the increase of small brand image promotion expenses; 1q22 the cost rate is stable. The turnover of inventories and accounts receivable continued to improve. The inventory turnover of 1q22 and 1q22 was 106 days (+ 3.19 days) and 97 days (- 27 days) respectively; Accounts receivable turnover is 16 days (- 7 days) and 10 days (- 14 days).
Investment advice
As a high-quality local cosmetics company, the company has gradually built a strong brand operation structure, empowered new brands, formed a multi brand matrix (some small brands make profits), and the company's development has reached a new level. EPS is expected to be 3.73/4.74/5.81 yuan in 22-24 years, corresponding to 49 / 38 / 31 times of PE respectively, maintaining the "buy" rating.
Risk tips
The impact of the epidemic exceeded expectations; New product + channel sales / marketing launch is not as expected.
