\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Conclusions and suggestions:
Performance summary:
It was announced that in 2021, the annual revenue was 4.63 billion, a year-on-year increase of 23.5%, the net profit was 580 million, a year-on-year increase of 21%, the revenue of 4q was 1.62 billion, a year-on-year increase of 11%, and the net profit was 210 million, a year-on-year increase of 11%. The performance is in line with expectations.
In 2022q1, the revenue was 1.25 billion, a year-on-year increase of 38.5%, and the net profit was 160 million, a year-on-year increase of 44.2% (the upper limit of performance forecast was 45%), and the net profit after deduction was 150 million, a year-on-year increase of 36.2%. Dividend scheme: cash dividend of RMB 8.6 per 10 shares
For the whole year of 2021, relying on the continuous upgrading of large single products, category expansion and wider reach at the marketing level, the company's sales maintained a good growth. The main brand Proya Cosmetics Co.Ltd(603605) achieved a revenue of 3.83 billion, a year-on-year increase of 28.3%, the cosmetics brand Caitang achieved a revenue of 246 million, a year-on-year increase of 103.5%, and other brands achieved a revenue of 409 million, a year-on-year decrease of 6%, which was mainly due to the decline of cross-border brand agency revenue due to business adjustment and inventory clearing. Benefiting from the benign growth of sales and the acceleration of payment collection, the net cash profit from operating activities during the reporting period was 830 million, a year-on-year increase of 150%.
In 2021, the gross profit margin of the company increased significantly, with a year-on-year increase of 2.9 percentage points to 66.46%, and the gross profit margin of 4q increased by 3.5 percentage points to 69.9%. On the one hand, it benefited from the promotion of large single product strategy, ASP increased significantly, and ASP of skin care products and beauty products increased by 27.6% and 34% respectively; On the other hand, the proportion of online direct sales revenue continued to increase. In 2021, the company's offline channel revenue was 700 million, a year-on-year decrease of 38%, and its online revenue was 3.92 billion, a year-on-year increase of 49.5%. Among them, the income of direct online stores was 2.8 billion, a year-on-year increase of 76%, and the proportion of online revenue increased by nearly 11 percentage points to 71.42%; In addition, the increase in the proportion of online self broadcasting has also helped.
On the expense side, the annual comprehensive expense rate increased by 2.69 percentage points to 49.59% year-on-year, mainly due to the year-on-year increase of 36.45% in image promotion fees brought by new brand incubation and brand remodeling, resulting in the year-on-year increase of 3.08 percentage points to 42.98% in sales expense rate. 21q4 expense rate has dropped, down 1.13 percentage points year-on-year to 50.63%.
22Q1 company continues the 2021 big single product strategy under the tiktok strategy (new consumption, new marketing, new organization, new mechanism, new technology and new intelligence). Sales momentum has been steadily improving to bring brilliant performance. During the 38 quarter of the campaign, the GMV of the main brand Proya Cosmetics Co.Ltd(603605) Tmall flagship store increased by more than 200% compared with the same period, and the GMV of the voice was increased by 100% over the same period last year. The company's 6N sales strategy has been increasing steadily. The growth of online direct sales drove the gross profit margin to rise by 3.2 percentage points to 67.6% year-on-year during the reporting period, the sales expense rate remained high, increased by 0.65 percentage points to 42.37% year-on-year, and the comprehensive expense rate decreased slightly by 0.19 percentage points to 49.43%.
Looking forward to the whole year, we believe that the company will continue to promote the construction of multi category and multi brand matrix, strengthen R & D and refined operation. In the short term, the growth rate of sales in the second quarter may slow down due to the disturbance of the epidemic, but in the whole year, due to the continuous promotion of brand influence and refined operation, the performance is expected to maintain steady growth. Considering the epidemic situation, the profit expectation is lowered. It is estimated that the net profit will be 720 million and 940 million respectively from 2022 to 2023, with a year-on-year increase of 25.4% and 29.4% respectively. The EPS is 3.59 yuan and 4.65 yuan respectively. The current share price corresponds to 50 times and 39 times of PE respectively, maintaining the investment proposal of "interval operation".
Risk tips: the incubation of new products is less than expected, the online growth is less than expected, the cost growth is more than expected, and the impact of the epidemic is more than expected
