\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Events
The company announced its performance in 2021, achieving an operating revenue of 4.63 billion yuan (+23.47%), a net profit attributable to the parent company of 580million yuan (+21.03%), and a basic earnings per share of 2.87 yuan per share.
Deepening the strategy of large single products, Caitang, a cutting-edge brand, has performed brilliantly
The company's skin care revenue was 3.978 billion yuan (+ 22.70%), and the gross profit margin was 22.70% (+ 3.56pct) Proya Cosmetics Co.Ltd(603605) achieved revenue of 3.829 billion yuan (YoY + 28.25%), accounting for 82.87% (+ 3.21 PCT) of total revenue. The company continued to deepen the strategy of large single product, launched the 2 version of the ruby cream and double anti essence. During the 38 quarter of this year, the cumulative sales volume of "double resistance essence" and "Ruby essence" exceeded 160 thousand and 39 thousand respectively. The revenue of beauty and cosmetics was 618 million yuan (+ 32.97%), and the gross profit margin was 7.39% (- 0.11pct). Caitang, a cosmetics brand, achieved a revenue of 250 million yuan (YoY + 103.48%), accounting for 5.33% (+ 2.10 PCT), gradually growing into the second growth curve of the company.
The number of online channels has increased, and the number of offline channels has shrunk due to the impact of the epidemic
The online revenue was 3.924 billion yuan (+ 49.54%), accounting for 84.93% (+ 1PCT), and the gross profit margin was 68.27% (1.92pct), of which the direct sales revenue was 2.8 billion yuan (+ 76.16%). The company has a comprehensive layout on the Internet, and the sales tiktok of Proya Cosmetics Co.Ltd(603605) brand in Tmall, jowin and Jingdong are about 45%/15%/10%. Tiktok channel master short video and live air outlet, self selling + sales of people have achieved rapid growth. This year, the 38 quarter of GMV increased 1800%. The offline revenue was 696 million yuan (- 38.03%), and the gross profit margin was 56.93% (-0.33pct). Mainly due to the company's initiative to adjust the current CS and supermarkets channels, and the superposition of the epidemic impact, the offline sales contracted.
Continued brand building, and the sales expense rate increased
In 2021, the company's sales expense was 1.992 billion yuan (YoY + 33%), and the sales expense ratio was 42.98% (+ 3.08 PCT). Among them, the rate of image promotion fee is 36.12% (+3.44pct), which is mainly because the company continues to increase the incubation of new brands such as Caitang and correctors, and reshapes yuefuti and other brands, increasing the input of image promotion fee. The rate of management and R & D expenses decreased slightly, with R & D expense rate of 1.65% (-0.27pct) and management expense rate of 5.12% (-0.32pct). The net interest rate was 12.02% (-0.02pct), the same as last year.
Investment advice
Thanks to strong R & D support, the company's main brands have been upgraded and new brands have been added one after another, driving high performance growth, category expansion and matrix improvement. With the continuous consolidation of online operation capacity, explosive products quickly break the circle, the flow is natural, and strengthen brand construction. Online as the main line and offline parallel sales mode, while enjoying the dividend of e-commerce, pay attention to the marginal change of traffic structure, and transition from traditional e-commerce to short video emerging platform, highlighting the first mover advantage. We expect that the company's EPS from 2022 to 2024 will be 3.61, 4.56 and 5.79 yuan / share respectively, corresponding to 50, 40 and 31 times of the current share price PE respectively. Maintain the "buy" rating.
Risk tips
Industry competition intensifies; Channel expansion is less than expected; The marketing effect is not as good as expected.
