Shanghai Jahwa (600315): Q2 scale growth rate improved to improve performance after deduction is still under pressure
Event summary In the first half of 2019, the company achieved operating income of 39.
23 ppm, a ten-year increase of 7.
02%; realized attributable net profit 4.
44 ppm, an increase of 40 in ten years.
12%; realized non-net profit deduction attributable to the parent company2.
61 ppm, an increase of 9 in ten years.
Net operating cash flow was 5.
44 trillion, an increase of 7 over the previous year.
Our Analysis and Judgment (I) Scale Increase in the First Half of the Year2.
57 trillion, the equity investment investment income led to the improvement of non-post performance after the first half of 2019, the company achieved operating income39.
23 trillion, an increase of 2 over the same period last year.
57 trillion, of which the growth in the first quarter was about 0.
93 ppm, an increase of about 1 in the second quarter.
6.4 billion yuan; in the first half of the year, the company’s main daily chemical industry realized a total of 39 revenues.
180,000 yuan, an increase of about 2 over the same period last year.
600,000 yuan, of which Q1 / Q2 contribute 0 respectively.
Cayman A2, Ltd.
Revenue in the first half of the year 8.
1.9 billion (20% of total revenue).
88%), the corresponding scale increment is 0.
61 ppm (23% increase in scale of contribution).
From the perspective of the revenue of major products, beauty skin care / personal care / home care achieved revenue 9 in the first half of 2019.
6.6 billion, personal care still covers a high proportion, contributing 72% of revenue.
16%; beauty and skin care products followed, the ratio reached 23.
60%; home care only accounts for 4.
Beauty skin care / personal care / home care achieved revenue in the second quarter4.
72/1.07 million yuan, corresponding to the increase in contribution revenue is 0.
4.2 billion, achieving 12.
01% / 5.
23% / 65.
In the second quarter of 2019, the average sales prices of the three main products, namely skincare / personal care / home care, increased by 17 respectively.
84% / 1.
87% / 3.
71%, of which the base of beauty and skin care products is high (the average in 2019Q2 reached 26.
09 yuan, ranking the other two categories of products at around 11 yuan) and improved significantly.
In the first half of the year, the company realized a net profit attributable to shareholders of the listed company of 4.
44 ppm, an increase of 1 over the same period last year.
27 ‰; net profit after deducting non-attribution to mothers increases by 0 every year.
23 ppm; of which non-current assets disposal gains and losses (the current period amount) 1.
380,000 yuan), total government subsidies, investment income and other non-recurring income.
83 trillion, an increase of 1 over the same period last year.
The increase in profits related to conventional operations mainly comes from the long-term equity investment income brought by the holding of associates. The company calculates according to the equity method of 19% of shares, and merges associates (Company C and D-Sephora (Shanghai) and Sephora (Beijing)) Total contribution net profit 0.
70 trillion, an increase of 0 over the same period last year.
2.7 billion; the two affiliates are mainly targeted at the mid-to-high-end cosmetics market, and the overall sales trend of cosmetics is improving.
2%), driving the company ‘s own brand and store passenger flow conversion rate to rise, of which Company C achieved a profit in the first half of the year2.
380,000 yuan, bringing revenue to the company.
45 ppm, corresponding to a net profit increase of 0.
In addition Cayman A2, Ltd.
From January to June 2019, net profit was 0.
320,000 yuan, an increase of 0 from last year.
08 billion (YOY33.
33%), the previous increase in net profit was mainly due to the expansion of channels in North America and Central Europe.
The net profit of the subsidiary, Zhong Herborist, was compared with the same period last year.
8.4 billion to 0.
2.1 billion, mainly due to the impact of brand adjustment and product structure adjustment.
(2) Comprehensive gross profit margin decreased 2.
66pct, the cost rate during the period is reduced by 1.
57pct’s consolidated gross profit margin for the first half of 2019 was 61.
94%, a decrease of 2 compared with the same period last year.
The 66 units were mainly due to the new plant operation and changes in sales structure.
Operating costs for the period increased by 15 per year.08%, the growth rate is significantly higher than the growth rate of revenue. The company’s raw materials required for the production of soap and oil, surfactants, solvents and packaging (carton, glass) prices to varying degrees in small amounts, nutrition and drug additives prices remain floating.
The company’s net sales margin for the first half of 2019 was 11.
32%, an increase of 2 per year.
The increase in net interest rate gradually increased during the period, the expense ratio fell, the company’s period expenses in the first half of 2019 increased by 56.
75%, estimated to decrease by 1 last year.
The current sales / management (including R & D) / financial expense ratios are 43.
50% / 12.
64% / 0.
61%, a decrease of 0 compared with the same period last year.
A total of 45; R & D expenses are included in the management expenses of 0.
73 ppm, corresponding to R & D expenditure1.
The decrease in financial expenses was mainly due to the decrease in foreign exchange losses caused by changes in the exchange rate of the US dollar against the pound in the foreign segment.
Changes in research and development expenses are mainly due to the increase in depreciation and amortization expenses each year.
(III) Brand matrix layout forecast, marketing methods follow the trend. According to the offline retail channel data of Nielsen and JFK, the company’s subsidiary Liushen brand has taken the lead in multiple categories to replace the market: toilet water / shower gel. January to June 2019 The monthly market share is 76.
2% / 5.
8%, ranked first and fourth.
Herborist ranks 16th in the market for major brands in skincare and cosmetics department stores from January to June 2019, with a market share of 2.
The US and Canada net brand is the first in the category of Volkswagen Hand Cream, with a market share of 12 in the first six months of 2019.
The Gough brand is the leader in the men’s skin care market. It overlaps with the 4th in the cream category and has a market share of 6 from January to June 2019.
Qichu overlaps in second place in baby creams and baby shower gels, with a market share of 14 in the first six months of 2019.
7% and 7.
Differentiated product positioning, slightly marketing methods, and constantly introducing new research and development capabilities such as Shanghai Jahwa’s various brands firmly occupy the leading position.
In addition, Shanghai Jahwa takes consumer trends in the new retail era as the core and continuously optimizes its brand layout. Among them, Herborist, Tang Meixing, and Shuangmei follow the trend of high-end, Meijiajing, Liushen continue to be younger, Guff, Qichu, Yuze, HomeAn meets the needs of segmentation, and the overall brand matrix is gradually enriched.
The company keeps up with the hot trends, and casts the hit drama “Chang’an Twelve Hours”, sponsors “Children of Tomorrow 3”, cooperates with Xiao Jingteng concert with “seeking water” as the starting point, and utilizes hot topic discussions to quickly increase brand awareness.And influence.
At the same time, the company 杭州桑拿网 believes that word of mouth, Douyin and brand marketing channels, using KOL’s ability to carry goods for social marketing, effectively reach the target customer group.
In addition, the company continues to try to evaluate new retail concepts such as marketing ideas and scene-based marketing to create brand memory points. In the second quarter, Liushen, Meijiajing cooperated with IP to launch customized public welfare series, which has shaped the brand’s social reputation, Liushen, Gough, and tide brand.The cross-border cooperation has ignited the consumption passion of young consumers and made the brand strategy of precise positioning a success.
The brand’s marketing strategy breaks through omni-channels and omni-channels, focusing on both online and offline, expanding the reach of marketing audiences, and continuing to promote marketing conversion rates. For example, Yuze launched a flash event offline with a dermatologist from the Shanghai Jiaotong University Affiliated Hospital.The cat launched the trial acne trial kit, Huameijia launched the Member Center applet, and Jahwa optimized the applet mall.
(IV) R & D strength creates quality assurance, mild skin care to meet the needs of special populations. At present, the company has reached technological R & D cooperation with Shanghai Academy of Preventive Medicine, Jiangnan University, Zhejiang University, etc. The market demand data combined with the R & D strength of professional institutions constitutesBasis of Shanghai Jahwa product line upgrade.
Shanghai Jahwa’s skin care products focus on gentle repairs, focus on consumer pain points, have a clear market positioning and are competitive.
In the second quarter, the company developed an evaluation standard for infants and children’s tear-free formula to improve the safety of infant and child bath products; using genetically engineered pain-mediated receptors to establish a tingling evaluation model to better care for sensitive muscles;A barrier-damaged skin model was established to test the repair function of skin care products.
In addition to technological innovation, Shanghai Jahwa has also launched many series from the perspective of raw materials and ideas.The company developed the Herborist lyophilized mask series for the first time in combination with freeze-drying technology. It innovatively uses the Chinese herbal medicine small molecule RNA repair technology to develop and reserve the Herborist Taiji two instruments.”Curious baby” and “concentrated baby” two series of products, Gough’s net source oil control products and Meijia net plant cleansing products are also competing in the market.
The launch of the new product line provides new consumption growth points, which is conducive to Shanghai Jahwa to increase market share and expand product user coverage.
Investment suggestion The company steadily promotes the effective landing of the strategy, and improves the company’s performance and operating efficiency.
In terms of brand promotion, the company concentrated resources to build a high-quality brand, actively promoted the high-end, younger, and segmented process of the brand. Each of the fist brands in the brand matrix has certain advantages in influence and market share.
In terms of channel innovation, the company’s various channels are actively deployed in accordance with brand planning, deeply cultivating traditional offline channels, developing new online channels, and developing collaboratively.
In terms of advancement of research and development, the company continuously increases research and development investment, improves research and development efficiency, and guarantees product quality and safety while innovating and applying new technologies.
In terms of supply guarantee, the company put the new plant into operation as planned, achieving a seamless seamless connection between the new and old plants, and continuous improvement of non-stop operations, which significantly improved performance.
Therefore, we maintain the company’s revenue from 2019/2020/2021 to 84.
2.3 billion, net profit 7.
03 trillion forecast; corresponds to PS2.
97 times, corresponding to PE32 / 27/23 times, maintaining the “recommended level”.
Risks indicate that the development of the daily chemical industry is less than expected; the risk of intensified market competition and the risk of reducing the concentration of the industry;