\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
The company disclosed the annual report of 2021 and the first quarterly report of 2022:
2021: revenue of 4.63 billion yuan, yoy + 23.5%; Net profit attributable to parent company: 576 million yuan, yoy + 21.0%; Deduct the net profit not attributable to the parent company of 568 million yuan, yoy + 20.9%; The performance is basically in line with expectations.
2021q4: the income is 1.621 billion yuan, yoy + 10.92%, the net profit attributable to the parent is 212 million yuan, yoy + 10.9%, and the net profit not attributable to the parent is 212 million yuan, yoy + 16.54%.
2022q1: revenue of 1.254 billion yuan, yoy + 38.53%, net profit attributable to parent company 158 million yuan, yoy + 44.16%, net profit not attributable to parent company 147 million yuan deducted, yoy + 36.21%, performance approaching the upper limit of forecast.
2021: strong online and new brands
1. Revenue side: the promotion of direct sales has driven high growth, and the growth of Caitang has doubled
① by brand, Proya Cosmetics Co.Ltd(603605) 3.829 billion yuan, yoy + 28.3%, Caitang 246 million yuan, yoy + 103.48%, Proya Cosmetics Co.Ltd(603605) steady growth, Caitang doubled growth, and new brand promotion has taken shape;
② in terms of channels, online: offline: 85:15, online direct sales: 2.803 billion yuan, yoy + 76.16%, online distribution: 1.12 billion yuan, yoy + 8.56%, offline 700 million yuan, yoy-38%, online direct sales revenue increased significantly, accounting for 18.2pct year-on-year increase, driving the overall revenue growth of the company. Offline channels are still in the adjustment period.
③ in terms of categories, skin care and make-up were 3.978 billion yuan, yoy + 22.7%, 618 million yuan and 32.97%, both of which maintained steady and high growth.
2. Profit side: the gross profit margin and marketing expenses increased, and the profit margin remained stable
In terms of gross profit margin, the gross profit margin of 2021 is 66.46%, yoy + 2.91pct, of which the gross profit margin of single Q4 is 69.92%, yoy + 3.48pct. In terms of splitting channels, the online gross profit margin is 68.27%, yoy + 1.92pct, and the offline gross profit margin is 56.93%, yoy-0.33pct. The overall gross profit margin increased significantly year-on-year, mainly because ① the proportion of online revenue increased; Second, the strategy of large single product is successful, and the high-end products such as essence, face cream and eye cream are increased. ③ The proportion of online self broadcasting has increased.
In terms of expense rate, the 2021 sales expense rate is 42.98%, yoy+3.08pct, of which Q4 sales expense rate is 45.00%, yoy-1.43pct. The annual marketing investment was increased, mainly due to the increase of image publicity and promotion expenses due to new brand incubation and brand remodeling. The management expense rate was 5.12%, yoy-0.32pct, and the R & D expense rate was 1.65%, yoy-0.27pct, which remained stable as a whole.
In terms of net interest rate, the net interest rate of 2021 sales is 12.02%, yoy-0.02pct, of which the net interest rate of single Q4 is 13%, yoy + 0.9pct. The annual net profit margin remained relatively stable under the background of the double rise of gross profit margin and sales expense rate, and Q4 increased to a certain extent due to the slight decline of sales expense rate compared with the same period.
2022q1: online direct sales continued to strengthen and profitability was optimized
Revenue side: close to the upper limit of the forecast, mainly due to the growth driven by online direct sales channels. It is predicted that Q1 Proya Cosmetics Co.Ltd(603605) online direct sales will increase in double digits, and offline channels will maintain a downward trend affected by the epidemic and adjustment; By category, the revenue of skin care / make-up was 1093 million and 150 million respectively, yoy + 46% and 6%.
Profit side: gross profit margin 67.57%, yoy + 3.16pct, net profit margin 13.50%, yoy + 1.7pct, sales expense rate 42.37%, yoy + 0.65pct, management expense rate 5.16%, yoy-0.18pct, R & D expense rate 2.39%, yoy + 0.44pct; Q1 the increase of gross profit margin drives the optimization of the company's overall profitability.
Business highlights and prospects: large single products and new brand matrix are advancing steadily, and online channels are king
Upgrade + category expansion, and deepen the strategy of large single products. Facial mask essence is upgraded with rubies and double anti acne essence. It is launched in 2. It mainly includes rubies face cream, ruby eye cream, night light eye cream, double anti face mask and so on. It also has new brand of original products, such as source repair essence, bowling blue bottle, feather feeling sunscreen and so on. At the same time, expand the reach range of large single products from the vertical crowd to the Pan American makeup crowd, optimize and intervene the whole link of the promotion path of large single products, deepen the cooperation relationship with people and refine the content operation mechanism.
New brands continue to be promoted and the matrix has initially taken shape. Caitang has doubled. In the future, it will continue to build a professional makeup concept around Tang Yi's IP, and continue to strengthen the categories of front makeup, bottom makeup and high gloss repair, so as to seize the market share of mid-range makeup; Yuet Fu and Keri increased marketing and publicity to promote the beauty of Jen Yan, Pore Essence and other large products, and the future is expected to cultivate the next volume brand. As a professional skin health care brand, off & relax, relying on the Japanese professional R & D advantages of its partners, will strengthen the offline breakthrough in the Japanese market in 2022, and increase the promotion and investment in the Chinese market to seize the brand mind of professional scalp care.
Online channels are the main channels, and offline channels continue to be adjusted. ① Online, for tmall, the core platform, the company continues to consolidate the strategy of large single products, carry out fine operation, improve the proportion of self broadcasting, and comprehensively upgrade the membership renewal and re purchase operation; For Kwai tiktok and new fast track, we should seize the live broadcast, increase the brand self broadcasting, strengthen cooperation with the high quality anchor box, and optimize the product mix and improve the proportion of large single products. For jd.com, it further strengthened the refined operation management, optimized the goods structure, successfully created multiple popular models and optimized the rhythm of delivery costs. ② Offline, the daily chemical channel continues to be adjusted and upgraded. The commercial supermarket channel focuses on building department store systems such as Yintai, Chongbai and Tianhong, so as to improve the brand image and enhance the initiative of Ba.
Investment suggestion: buy rating
The company's 6 n strategy has been continuously promoted, and high organizational efficiency has brought rapid response and keen demand insight. The main brand's large single product strategy has achieved remarkable results, and the new brand Caitang has been preliminarily formed. At the same time, the company's online marketing operation ability is outstanding, and its multi-channel performance is brilliant. In the future, the main brand will promote new upgrading + brand matrix expansion, and the performance is expected to maintain stable and high growth under the platform and ecology. It is estimated that the company's net profit attributable to the parent company will be 736 million, 906 million and 1098 million in 22-24 years (the previous value is 746 million and 914 million yuan. According to the updated data of the annual report and taking into account the impact of the epidemic, the offline channel income will be slightly adjusted). The current stock price will be 50, 40 and 34 times corresponding to 20222024, maintaining the "buy" rating.
Risk warning: the market space is less than expected, the progress of product approval and promotion is less than expected, the industry competition is intensified, and there are risks of error or lag in third-party data
