Po Laiya (603605): Multi-brand, multi-channel operation drives continued high growth

Po Laiya (603605): Multi-brand, multi-channel operation drives continued high growth

Event: The 无锡夜网company achieved revenue of 23 in 2011.

600 million, +32 per year.

4%, net profit attributable to mother 2.

900 million, +43 per year.

0%, net profit after deduction is +50.


The reason for the company’s profit growth is that the profitability of online sales is higher than offline, and the increase in online revenue in 2018 has increased the company’s profits as a whole.

The gross profit margin increased, and the expense ratio decreased during the period: the gross profit margin increased by 2.

3pp to 64.

0%, the period expense ratio (including research and development expenses) decreased by 1.

02pp to 46.


The financial expense ratio decreased by 1.

46pp to -0.

5%; sales expense ratio increased by 1.

87pp to 37.

5%, due to the increase in publicity and promotion costs and increase in advertising investment; the “management + R & D” expense ratio decreased by 1.

42pp to 9.

4%, strict cost control, rationalization of costs and significant benefits.

Brands: Multi-brand assets with “differentiation and youth”.

The company’s products cover skin care products, make-up, cleansing and care, aromatherapy and other fields, covering brands such as Perla, Youzilai, Hanya, Youya, Cat Rose, Yuefuti.

(1) Brands: The revenue of the Polia brand in 2018 was 20.

900 million, accounting for 88.

8% +32 per year.

4%; Youzilai brand revenue 1.

300 million, accounting for 5.

6%, +41 per year.


(2) Rejuvenation: The company is moving closer to rejuvenation in new product development and brand marketing. In 2018, it launched the “Rechargeable Ampoule”, with newly signed spokespersons Li Yifeng, Luo Yunxi, and Liu Yinglun.

(3) Multi-category: The company advances from skincare to makeup and expands the category to enhance the flash point. In 2018, the company’s main brand, Polaya, launched new products such as the printed color Baha insbaha makeup series and bubble SPA masks. The future makeup category will be created.First class explosion.

Channel: Daily chemical, single-brand stores and e-commerce troika go hand in hand.

(1) Strong development of e-commerce platforms: The online share continues to increase, and social e-commerce is the point of increase in the future.

E-commerce channels achieved revenue in 201810.

3 billion, accounting for 43.

6% + 60% per year.

In 2019, the company is expected to account for over 50% of its online presence.

(2) Single-brand stores: channel revenue of single-brand stores in 20181.

100 million, launched nearly 300 SKU new products, covering skin care, makeup, health and other categories.It is estimated that there will be more than 2,000 single-brand stores in 2019, which will be the new growth point of the company’s future revenue.

(3) The channel of franchise stores is the company’s most important sales channel at present, and the revenue of the channel of franchise stores in 2018.

0深圳丝袜会所 billion, accounting for 42.

5%, +7 per year.


Profit forecast and rating.

The company is a leading domestic beauty cosmetic company. The management efficiency has been steadily improved and the performance has grown rapidly. It is expected that the net profit attributable to mothers for 2019-2021 will be 3 respectively.

800 million, 5.

100 million and 6.

800 million, EPS is 1.

89 yuan, 2.

51 yuan and 3.

40 yuan, corresponding to PE is 34/25/19 times.

Considering that the company has core competitiveness such as R & D strength, multi-brand matrix, and omnichannel, it maintains a “Buy” rating.

Risk warning: industry competition or intensification; channel structure risk; new project incubation risk.