\u3000\u3 Shengda Resources Co.Ltd(000603) 605 Proya Cosmetics Co.Ltd(603605) )
Event: the company released the annual report of 2021 & the first quarterly report of 2022. In 2021, the revenue will reach 4.633 billion yuan, yoy + 23.48%; The net profit attributable to the parent company was 576 million yuan, yoy + 21.03%, and the net interest rate attributable to the parent company was 12.43%, with a decrease of 0.25 PCT; The net profit attributable to the parent company after deducting non-profit is 568 million yuan, yoy + 20.89%. 2021q4 achieved revenue of 1.621 billion yuan, yoy + 10.92%; The net profit attributable to the parent company is 212 million yuan, yoy + 10.9%. In 2022q1, the operating revenue was 1.254 billion yuan, yoy + 38.53%; The net profit attributable to the parent company was 158 million yuan, yoy + 44.16%, close to the upper limit of performance forecast, and the net profit attributable to the parent company was 12.63%, up 0.49pct; The net profit attributable to the parent company after deducting non profits was 147 million yuan, yoy + 36.21%.
Revenue side: quarterly: 21q1-22q1 achieved revenue of 905 / 10.12 / 10.95 / 16.21 / 1.254 billion yuan respectively, yoy + 48.88% / 30.42% / 20.71% / 10.92% / 38.53% respectively. By brand, in 2021, 1) the main brand Proya Cosmetics Co.Ltd(603605) revenue was 3.829 billion yuan, yoy + 28.25%, accounting for 82.87% of the revenue, an increase of 3.2pct at the same time; 2) Caitang's revenue was 246 million yuan, yoy + 103.48%, accounting for 5.33%, an increase of 2.1pct at the same time, and has realized profit. By channel, in 2021, 1) online revenue was 3.924 billion yuan, accounting for 84.93%, with an increase of 14.92 PCT, of which direct revenue was 2.803 billion yuan, yoy + 76.16%, accounting for 60.66%, with an increase of 18.21 PCT, distribution revenue was 1.121 billion yuan, yoy + 8.56%; 2) The offline revenue was 696 million yuan, accounting for 15.07%, of which the daily chemical channel revenue was 503 million yuan, yoy-40.52%.
Cost side: the gross profit margin in 2021 was 66.46%, with an increase of 2.9pct, mainly due to 1) the increase in the proportion of online revenue; 2) Mainly promote the strategy of large single product; 3) The proportion of online self broadcasting has increased. By quarter, the gross profit margin from 21q1 to 22q1 was 64.41% / 63.12% / 66.1% / 69.92% / 67.57% respectively, with an increase of 3.16pct in 2022q1.
Expense side: during 2021, the expense rate is 49.6%, with an increase of 2.7pct, of which the sales expense rate is 43%, with an increase of 3.1pct, of which the image promotion rate is increased by 3.44pct; The rate of administrative expenses was 5.1%, with a decrease of 0.3pct; The R & D expense rate was 1.7%, with a decrease of 0.3pct; The financial expense rate is - 0.2%. During 2022q1, the expense rate was 49.43%, with a decrease of 0.19pct, of which the sales expense rate was 42.37%, with an increase of 0.65pct, of which the rate of publicity and promotion expenses decreased steadily; The management fee rate was 5.16%, with a decrease of 0.62pct; The R & D expense rate was 2.39%, with an increase of 0.44 PCT; The financial expense rate is -0.49%.
Cash flow: in 2021, the net cash flow from the company's operating activities was 830 million yuan, yoy + 150.24%, and the cash flow from the company's investment activities was - 342 million yuan. Monetary capital was 2.391 billion yuan by the end of 2021, yoy + 68.78%, and 2.64 billion yuan by 2022q1, yoy + 99.48%.
Investment suggestions:
In the future, the company will continue to promote the "6n" strategy - new consumption, new marketing, new organization, new mechanism, new technology and new intelligent manufacturing, which is expected to create a "light of domestic products representing China to compete with the world" and build a new domestic cosmetics industry platform. The net profit of 22 / 23 is expected to be 750 / 940 million yuan, maintaining the "buy" rating.
Risk warning: macroeconomic downside risk; The risk of intensified industry competition; New product launch is less than expected risk
