\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
The revenue and net profit attributable to the parent company in 21 years were + 23% and + 21% year-on-year, and the performance of 22q1 increased beautifully
In 2021, the company realized an operating revenue of 4.633 billion yuan, a year-on-year increase of 23.47%, a net profit attributable to the parent of 576 million yuan, a year-on-year increase of 21.03%, deducting a net profit not attributable to the parent of 568 million yuan, a year-on-year increase of 20.89%. The performance basically met the expectations. The EPS was 2.87 yuan, and it was proposed to pay a dividend of 0.86 yuan per share (including tax), and each share was converted into a capital reserve of 0.4 shares.
From 21q1 to 22q1, the revenue growth rate of the company in a single quarter was + 48.88%, + 30.42%, + 20.71%, + 10.92% and + 38.53% respectively, and the net profit attributable to the parent company was + 41.38%, + 15.01%, + 30.09%, + 10.90% and + 44.16% respectively.
In the past 21 years, online and offline revenue increased by + 50% and - 38% year-on-year. The main brands continued to grow and small brands were growing rapidly
1) from the perspective of different channels: the online and offline revenues in the past 21 years were 3.924 billion yuan and 696 million yuan respectively, accounting for 84.93% of the online revenue (accounting for the proportion of the main business revenue, the same below), an increase of 14.92 PCT year-on-year, and the online and offline revenues were + 49.54% and - 38.03% year-on-year respectively. Among them, the proportion of online direct sales and distribution revenue was 60.66% and 24.27% respectively, and the revenue was + 76.16% and + 8.56% year-on-year respectively. The online direct sales revenue increased by more than 70% for three consecutive years; The revenue from offline daily chemical and other channels accounted for 10.88% and 4.19% respectively, with a year-on-year revenue of - 40.52% and - 30.50% respectively, mainly due to the company's network contraction and structural adjustment and the reduction of passenger flow in stores affected by the epidemic.
2) by brand: the total revenue of private brands is 4.484 billion yuan, accounting for 97.05%, and the revenue is + 26.63% year-on-year. In terms of breakdown, the company's main brand Proya Cosmetics Co.Ltd(603605) revenue was 3.829 billion yuan, accounting for 82.87%, with a year-on-year revenue of + 28.25%; Caitang brand revenue was 246 million yuan, accounting for 5.33%, with a year-on-year revenue of + 103.48%; The revenue of other private brands was 409 million yuan, accounting for 8.85%, and the revenue was - 5.96% year-on-year. In addition, the company's cross-border agency brand revenue was 136 million yuan, a year-on-year increase of - 34.04%.
3) by category: the skin care category maintained steady growth, and the proportion of color cosmetics increased. Among them, the revenue of skin care (including skin cleaning) was 3.978 billion yuan, which was still dominant (accounting for 86.10%) and + 22.70% year-on-year; The income of cosmetics was 618 million yuan, a year-on-year increase of + 32.97%, and the proportion of income increased from 12.41% in 20 years to 13.38% in 21 years; Other income was 24 million yuan, a year-on-year increase of - 41.05%.
The gross profit margin continued to rise year-on-year, the expense rate increased in 21 years, remained unchanged in 22q1, and the net cash flow from operations increased
Gross profit margin: the gross profit margin increased by 2.91 PCT to 66.46% year-on-year in 21 years, mainly due to the increase in the proportion of online channel revenue with high gross profit, and the company's main promotion of large single product strategy, the increase in the proportion of large single products with high gross profit, and the increase in the proportion of online self broadcast. By channel, the online and offline gross profit margins were 68.27% (year-on-year + 1.92pct) and 56.93% (- 0.33pct) respectively; In terms of categories, the gross profit margins of skin care, make-up and other categories are 68.40% (+ 3.56pct), 57.39% (- 0.11pct) and - 1.98% (- 38.25pct) respectively.
The gross profit margins of companies from 21q1 to 22q1 were 64.41%, 63.12%, 66.10%, 69.92% and 67.57% respectively, with a year-on-year increase of + 4.50, + 3.23, + 1.61, + 3.48 and + 3.16pct respectively. The gross profit margin showed an upward trend as a whole.
Expense rate: during the 21 years, the expense rate of the company increased by 2.69pct to 49.59% year-on-year, of which the expense rates of sales, management, R & D and finance were 42.98% (+ 3.08pct), 5.12% (-0.32pct), 1.65% (-0.27pct) and - 0.16% (+ 0.20pct) respectively. The increase in sales expenses was mainly due to the incubation of new brands (Caitang, keruifu) and brand reconstruction (yuefuti, etc.), the company increased the investment in image publicity expenses, and the proportion of image publicity expenses in revenue increased by 3.44pct year-on-year (the main brand image publicity expenses were stable). The expense rates of 21q1 ~ Q4 companies in a single quarter were + 7.33, + 7.89, + 1.40 and -1.13pct respectively year-on-year.
During 22q1, the expense rate was 49.43%, with a year-on-year decrease of 0.19pct, of which the expense rates of sales, management, R & D and finance were + 0.65, -0.62, + 0.44 and -0.67pct respectively year-on-year.
Other financial indicators: 1) the inventory at the end of 21 decreased by 4.42% to 448 million yuan compared with that at the beginning of 21, and the inventory turnover days were 106 days, an increase of 3 days year-on-year. 22q1 inventory turnover days were 97 days, a year-on-year decrease of 27 days.
2) at the end of the year, the accounts receivable decreased by 51.34% to 139 million yuan compared with the beginning of the year, and the turnover days of accounts receivable were 16 days, a year-on-year decrease of 7 days. The decrease in accounts receivable was mainly due to the strong credit support given by the company to offline dealers in 20 years, the high base, the settlement of offline dealers in 21 years according to the normal accounting period, and the de inventory of offline dealers. 22q1 accounts receivable turnover days were 10 days, with a year-on-year decrease of 14 days.
3) the net cash flow from operating activities increased by 150.24% year-on-year to 830 million yuan in 21 years, mainly due to the increase of income, the decrease of accounts receivable and the increase of sales receipts. 22q1 operating cash flow increased by 521.66% year-on-year.
With clear strategy and firm implementation, it is expected that many brands will continue to make efforts in the past 22 years
The company firmly implements the "6 n" strategy (new consumption, new marketing, new organization, new mechanism, new technology and new intelligent manufacturing), deepens the "big single product strategy", creates a big single product ladder, and upgrades and expands the categories of existing big single products. In 21 years, the number of big single products has expanded to 9. At present, the revenue of big single products accounts for more than 25% of the main brand Proya Cosmetics Co.Ltd(603605) and about 60% of tmall platform, The unit price of large items on tmall platform was increased to 205 yuan.
In 2022, the company will continue to strengthen the construction of multi category and multi brand, strengthen the large item matrix of the main brand Proya Cosmetics Co.Ltd(603605) and improve the revenue volume of the color makeup brand Caitang and the washing and care brand or. On this basis, the company continues to strengthen basic research and development. Recently, guanxuan has carried out strategic cooperation with Zhejiang Pai peptide in innovative peptide research and development, green peptide synthesis, raw material production and supply and other fields to continuously strengthen product strength; In terms of marketing, we will focus on strengthening the brand out of the circle and enhancing its influence.
Considering that the short-term epidemic situation in some regions has an adverse impact on logistics delivery, offline passenger flow and consumer confidence, we lowered the company's profit forecast for 22-23 years (the net profit was reduced by 4% and 3% compared with the previous profit forecast). According to the latest share capital, the EPS was 3.52 and 4.43 yuan respectively, the new 24-year profit forecast and the corresponding 24-year EPS were 5.50 yuan, and the PE in 22 and 23 years were 52 and 41 times respectively, maintaining the "buy" rating.
Risk tip: the impact of the epidemic in China exceeded expectations, resulting in weak terminal consumption; Channel expansion, marketing launch effect and new product launch effect are less than expected; The effect of small brand cultivation is less than expected; Improper grasp of industry trend changes; Improper cost control.
