Shanghai Jahwa (600315): The core brand continued to focus on the recovery in the third quarter and the future performance of new single products
1.Event summary In the first three quarters of 2019, the company achieved operating income of 57.
35 ppm, a five-year increase of 5.
81%; realized attributable net profit 5.
40 ppm, an increase of 19 in ten years.
09%; realized non-net profit deduction attributable to the parent company3.
80 ppm, a ten-year increase2.
Net operating cash flow was 7.
2.5 billion, an increase of 1 over the previous year.
2.Our analysis and judgment (1) The scale of the first three quarters increased3.
150,000 yuan, deduct non-performance increased by 0.
7,000 yuan The company achieved operating income of 57 in the first three quarters of 2019.
3.5 billion, an increase of 3 over the same period last year.
1.5 billion; Q1 / Q2 / Q3 companies achieved operating income of 19 respectively.
13 ppm, corresponding to a revenue increase of 0.
580,000 yuan, it is estimated that the growth in the second quarter is even more leading.
From the perspective of the revenue of major products, beauty skin care / personal care / home care achieved revenue in the third quarter5.
65 ppm, the corresponding contribution revenue increase is 0.
1.4 billion, YOY1 compared with the same period last year.
33% / 3.
10% / 27.
11%; the revenue of the three main products in the second quarter changed by 0.
63 / -1.
77 / -0.
42 trillion, a month-on-month change of 13.
Among them, personal care products contributed the main revenue (single quarter accounted for 65.97%), and promoted revenue growth (contributing to a single quarter revenue increase of 63.
03%); however, the personal care and beauty skin care products’ pre-determined proportions exceeded the replaced range, and they were 0 compared with the same period of the previous year.
58 single, corresponding to the increase in shared contributions in the home care category.
Judging from the sales unit price, the average cost of beauty skin care / personal care / home care in the third quarter increased by 0 compared with the same period last year.
67% / 1.
37% / 1.
15%, the growth rate increased by 9.
83 / -11.
However, according to previous years’ experience, the unit price of commodities in the third quarter will decline compared with the second quarter. The average replacement of the three main products in 2019Q3 will decrease by 47 compared with that in 2019Q2.
99% / 8.
75% / 18.
71%, a decrease of 8.
In the first three quarters, the company realized a net profit attributable to shareholders of the listed company of 5.
400,000 yuan, an increase of 0 over the same period last year.
8.7 billion; Q1 / Q2 / Q3 companies achieved net profit attributable to their mothers2.
96 ppm, corresponding to a net profit increase of 0.
44 / -0.
In the first three quarters, the net profit after deducting non-return to mothers reached 3.
80 ppm, an increase of 0 in ten years.
7.0 billion, of which Q1 / Q2 / Q3 companies realized net profit after deduction of non-return to their mothers1.
19 ppm, corresponding to a net profit increase of 0 after deduction.
12 / -0.
Non-recurring gains and losses recognized in the first three quarters1.
60 ppm mainly includes 1 from disposal of non-current assets.
38 ppm, government subsidy 0.
150,000 yuan and 0.
Changes in fair value and investment income of USD 3.3 billion; including changes in fair value and investment income in the third quarter) Total is -2776.
790,000 yuan (Q1 / Q2 are 7055 respectively.
39 / -1044.
720,000 yuan), further appeared thickness.
(2) Comprehensive gross profit margin decreased by 1.
16pct, the cost rate is reduced by 0 during the period.
23pct’s consolidated gross profit margin for the first three quarters of 2019 was 61.
63%, a decrease of 1 compared with the same period last year.
The 16 units are mainly affected by the adjustment of product structure and the cost of depreciation and thickening of the new plant.
The company’s operating costs in the third quarter were 7.
08,000 yuan, a decrease of 1 over the same period last year.
61%; operating costs for the first three quarters totaled 22.
One billion yuan, rising every year.
13%, the growth rate is slower than the expansion of revenue scale.
In the raw materials required by the company for production, the prices of soap granules (-2%), surfactants (-9%) and packaging materials (carton -10%, glass -1%) all have different degrees of substitution. Only solvents (+ 1%) and nutritional and pharmaceutical additive prices rose slightly.
The company’s net sales margin for the first three quarters of 2019 was 9.
42%, up by 1 each year.
05 totals; period expenses 56.
17%, an estimated decrease of 0 in the previous year.
The sales / management (including R & D) / financial expense ratios are 42.
13% / 13.
36% / 0.
69%, a change of +0 from the same period last year.
28 / -0.
22 / -0.
28 units; sales expenses increased by 1 compared with the first three quarters of last year.
480,000 yuan (6 compared with the same period last year).
(3) Brand matrix layout pattern, omni-channel marketing products to support brand development. Shanghai Jahwa takes consumer trends in the new retail era as its core and continuously optimizes its brand layout. Among them, Herborist, Tang Meixing, and Shuangmei follow the high-end trend.With continued youthfulness, Gao Fu, Qi Chu, Yu Ze, and Jia An meet the needs of segmentation, and the overall brand matrix is gradually enriched and improved.
Through global marketing, the popularity of Liushen, Meijiajing, Gough, Qichu and other brands has increased significantly.
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.
The initial company plans that in 2019, the brand will work around “digital empowerment, quality marketing”, which is embodied in positioning “quasi”, “hot” products, “excellent” marketing, and “exclusive” channels.
In terms of channel construction, Shanghai Jahwa ‘s main strategy is omni-channel, full coverage, integration of online and offline, and matching development of channels and brands; the current eight major channels include: offline distributor sales,Directly operated KA, mother and baby, cosmetics specialty stores, department stores, overseas; online e-commerce, special channels; each channel matches different brand and category positioning.
In addition, the company is focusing on creating explosive products. Taking Double Eleven this year as an example, as of October 24th, at 5 pm, combined with the previous Weibo advertising, beauty blogger Li Jiaqi with product recommendations and other marketing methods, Herborist official flagship storeThe main promotion of pre-oxide 298 yuan lyophilized powder mask has been booked for 11,777 copies, Taiji Sun and Moon Essence for 299 yuan is ordered for 19393 copies, and 99 yuan for new Qibai Dabai mud is scheduled for 16,767 copies. The total of these three can contribute about 1096.
(IV) R & D promotion helps to improve product quality, new factory supports future capacity and supply growth. At present, the company has reached technological R & D cooperation with Shanghai Academy of Preventive Medicine, Jiangnan University, Zhejiang University, etc., and market demand data, combined with R & D of professional institutionsStrength constitutes the basis for the upgrading and upgrading of Shanghai Jahwa’s product line.
In addition, the company’s separation of raw materials, formulation development, product production and storage and transportation to ensure product safety to the greatest extent.
The new factory Qingpu Leapfrog Factory, which is responsible for the company’s main production force, has been put into use since June 2018. The designed production capacity is 600 million pieces / year, which is five times the original central plant.
It is expected that all parts of the plant will be put into operation one after another, and the maximum production capacity will continue to increase.
The construction and commissioning of the new plant not only met the company’s own development needs and the needs of the optimization of the production layout of the supply chain, but also the overall production capacity, supply guarantee capabilities and intelligent manufacturing levels of the plant were fully improved after the project was put into operation.
Advanced, intelligent factories ensure that the company can continue to provide consumers with high-quality products.
3．Investment suggestion: The company steadily promotes the effective landing of its strategy. In terms of brand promotion, the company focuses its resources on building a high-quality brand in an all-round way, and actively promotes the high-end, younger, 杭州桑拿 and segmented process of the brand. Each of the fist brands in the brand matrix has influence and market shareBoth have certain advantages.
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 predict that the company will achieve revenue of 79 in 2019/2020/2021.
2.7 billion, net profit 6.
11 trillion; corresponding to PS2.
48 times, corresponding to PE37 / 31/26 times, the previous “cautious recommendation level”.
4．Risks indicate that the development of the daily chemical industry is less than expected; the risk of intensifying market competition and decreasing the concentration of the industry;