\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
The company released the annual report / first quarterly report of 2021. In 2021, the revenue and net profit attributable to the parent company reached 4.63 billion and 580 million, with a year-on-year increase of 23.5% and 21.0%. The revenue and net profit attributable to the parent company in 22q1 increased by 38.5% and 44.2% respectively. The annual report plans to increase 4 shares for every 10 shares by 8.6 yuan.
The number of online direct channels has increased, while the number of offline channels has decreased due to the impact of the epidemic and the active adjustment of channels. 1) online: in 2021, the revenue reached 3 billion 920 million yuan, up 49.5% over the same period last year, and the revenue of direct / distribution revenue reached 28/11.2 billion yuan, up by 76.2%/8.6% respectively, compared with the income of Tmall / jitter / Jingdong respectively. The income of the tiktok / 45%+/15%+/10%+ was respectively 1. 2) Offline: in 2021, the revenue reached 696 million yuan, a year-on-year decrease of 38.03%, mainly due to the impact of the epidemic + the company's initiative to adjust and optimize its outlets.
The main brand has maintained rapid growth, and Caitang has a high-speed and large volume. 1) the main brand: Proya Cosmetics Co.Ltd(603605) realized 3 billion 830 million yuan in revenue, an increase of 28.3% over the same period, and showed a steady performance. The largest single product accounted for Proya Cosmetics Co.Ltd(603605) brand 25%+, accounting for 60% of the Tmall platform, of which the ruby essence accounted for 18%+, and the double anti acne essence accounted for 16%+. 2) Caitang: it has achieved a revenue of 246 million yuan (+ 103.5%), with rapid and large-scale production. 3) Cross border agency brands: the revenue reached 136 million yuan, a year-on-year decrease of 34%, which is expected to continue to shrink in the future.
22q1 performed well and the revenue and profit increased rapidly. 1) Revenue: 21q4 / 22q1's revenue increased by 10.9% / 38.5% year-on-year, and its performance accelerated against the background of the epidemic. 2) profitability: 21q4 / 22q1's gross profit margin was 69.9% / 67.6% respectively, with a year-on-year increase of 3.5/3.2pcts, which remained at a high level. It was mainly due to the success of the company's large single product strategy. Driven by the high increase in gross profit margin, 21q4 / 22q1's net profit margin was 13.0% / 13.5% respectively, which improved month on month.
We believe that in the future, the company's main brand Proya Cosmetics Co.Ltd(603605) will continue to focus on the strategy of large single products, and Caitang will make efforts to subdivide the categories, which is expected to maintain a high growth; At the same time, other new brands will also take over the growth. In terms of channel, tmall flagship store is expected to maintain rapid growth, and taowai channel will also contribute important increment. In the medium and long term, under the background of stricter industry supervision and channel flow reform, it will test the product power and channel operation ability of relevant companies, and the company's "long-term emphasis on basic R & D + flexible and efficient marketing system + internal incentive mechanism" will boost its market share in the future.
Profit forecast and investment suggestions
According to the annual report, we lowered the profit forecast for 20222023 and predicted that the earnings per share for 20222024 were 3.59 yuan, 4.61 yuan and 5.79 yuan respectively (compared with 3.66 yuan and 4.67 yuan in 20222023). With reference to comparable companies, we gave the company 58 times PE valuation in 2022, corresponding to the target price of 207.94 yuan, maintaining the "buy" rating of the company.
Risk tips: the growth rate of e-commerce is lower than expected, new product development risk, macroeconomic fluctuation, market competition risk, etc.
