\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Core conclusion
Event: in 2021, the company realized an operating revenue of 4.633 billion yuan, a year-on-year increase of + 23.47%, and a net profit attributable to the parent company of 576 million yuan, a year-on-year increase of + 21.03%. In 2022, Q1 achieved an operating revenue of 1.254 billion yuan, a year-on-year increase of + 38.53%, and a net profit attributable to the parent company of 158 million yuan, a year-on-year increase of + 44.16%.
The trend of online continued high growth, and the “big single product” strategy demonstrated its strength. In 2021, the company realized an operating revenue of 4.633 billion yuan, a year-on-year increase of + 23.47%. As a leading enterprise of domestic cosmetics, the company adheres to the “big single product” strategy and continuously demonstrates its brand strength. In the past 21 years, the online channel contributed 3.924 billion yuan, a significant increase of 49.54% year-on-year. Under the adjustment of CS and supermarkets outlets and the disturbance of the epidemic, the offline channel income was 696 million yuan, a year-on-year increase of – 38.03%. 22q1 Caitang / yuefuti / youzilai and other brands turned losses into profits, and the company surpassed the Queen’s day on March 8, Proya Cosmetics Co.Ltd(603605) gmv tmall increased by more than 200% at the same time, reaching the crown of tmall’s domestic beauty makeup, and Caitang Gmv increased by more than 400% at the same time, far exceeding the full-time sales of March 8 last year.
The product structure is upgraded, the gross profit is increased, and the rate of brand image promotion and sales expenses is increased. In 2021, the gross profit margin of the company was 66.46%, up from +2.91pcts, mainly due to the upgrading of the company’s product structure, the high Maori skin care essence and the eye cream ratio, and the proportion of online self broadcasting increased. The incubation of Caitang and other brands of the company and the reconstruction of yuefuti brand made the sales expense rate + 3.08pcst to 42.98% year-on-year; The management / R & D expense ratio increased from -0.32 / – 0.27pcts to 5.12% / 1.65% year-on-year respectively.
Multidimensional output binds young attributes, and digital empowerment helps brand development. The company adheres to the long-term principle, based on the “6 n” strategy, strengthens the core competence of the enterprise, improves the single product matrix, and enhances the brand’s sense of science and technology and young attribute; At the same time, the company focuses on digital management, forms an efficient and self driven organization, and helps the steady development of the brand. Recently, the Ministry of industry and information technology has set the tone to build a 10 billion beauty brand. Under the favorable policy environment, the company is expected to seize the opportunity to form its own core competitiveness and lead the domestic cosmetics industry.
Investment suggestion: it is estimated that the company’s EPS from 2022 to 2024 will be 3.70/4.71/5.86 yuan respectively, corresponding to 52 / 41 / 33 times of the latest PE respectively, maintaining the “buy” rating.
Risk warning: industry competition intensifies; The incubation of new brands is not as expected; The form of the epidemic is uncertain.
