Po Laiya (603605): 19Q1 revenue performance billions of speed-up faucet accumulated a troika opening

The event company announced the 2019 first quarter report, and achieved operating income in a single quarter6.

420,000 yuan, an increase of 27 in ten years.

59%; net profit attributable to mother 0.

910,000 yuan, an increase of 30 in ten years.

36%; net profit without deduction to mother 0.

910,000 yuan, an increase of 35 in ten years.


Brief comment on the 19Q1 revenue maintained a high growth, the industry prosperity rebounded strongly The company’s long-term growth of 19Q1 revenue27.

59%, an increase of 16 over 18Q1.

66 pct, of which skin care revenue increased by 26.

8% to 5.

78 ppm, due to the increase in the proportion of sales of average-price products such as Q1 masks, the ASP of skin care products decreased by 19.

71%; Cleansing income increased by 10.

8% to 0.

47 trillion; the promotion of beauty benefit makeup products, a year-on-year increase of 295.

7% to 0.

18 ppm, accounting for 0% of total revenue from 18Q1.

9% rose to 2.


Initially, the domestic popular makeup brands are continuously integrated, and the head brands have accumulated strength and gradually emerged.

In this context, the company, as a local mass cosmetics leader, has accumulated brand power, R & D / product power, channel power and marketing power for many years, and it ushered in an explosion in 2018.

The initial revenue increased by 32.

43%, a sharp increase of 22 in ten years.

6 pcts, of which Q3 and Q4 increased by 36 respectively.

64%, 40.

62%, growth accelerated in the second half of the year, not affected by the general sales environment.

The overall retail sales of cosmetics have bottomed out from the end of 2018. December 18, January-February 19, and March limit the retail sales of cosmetics1.

9%, 8.

9%, 14.

4%. Since 2019, cosmetics sales have been picking up month by month. Cosmetics consumption is widespread, and upgrades are progressing steadily. The industry’s prosperity is maintained.

1Q1 limits the retail sales of cosmetics for a decade.

9%, the company’s revenue growth continued to significantly lead the industry and continue to expand market share.

E-commerce-driven growth, gross profit margin, and expense ratio continue to improve. The main brand Polia 武汉桑拿 has steadily developed since 2018, continuing to promote brand upgrades (establishing a joint laboratory with French R & D institutions to upgrade marine skincare strategies), and launching new products.5 new product series: make-up, ampoules, facial masks, mid-to-high-end washing and care), integrated marketing (continuing cooperation with traffic artist / variety / movie, digital marketing, online and online integrated interactive marketing) and product rejuvenation.

Brand revenue increased by 32 in 2018.

4%, 9% faster in the second half than in the first half.


Revenue from other brands also increased by 32.
7%, a significant speedup, mainly driven by the good development of Youzilai single brand stores. Through the creation of smart stores, nearly 300 SKU new products (skin care, makeup, health, etc.) were 佛山桑拿网 newly launched. During the year, Yuzilai’s revenue rose to 1.
3.3 billion.

In terms of channels, e-commerce surpassed the biggest driver of the company’s high growth in 2018, resulting in an increase in revenue of 59.

91%, accounting for 43% of main income.

6%, the company continued to increase online spending, basically achieved full coverage of major online platforms, and strengthened refined operations for direct marketing, distribution, and social platform features.

The brand positioning is in line with the online ecology, combined with digital marketing, it has achieved good results, and the online drainage effect is gratifying.

Offline 2018 revenue13.

3 ppm, an increase of 16 in ten years.

It is estimated that 88%, which is almost the same as the offline revenue in 2017, has improved significantly. The improvement in the quality of single-store operations of CS has brought about endogenous growth, providing the main driver.

Single-brand stores are still being cultivated. In 2018, they were allowed to develop, with more than 500 stores opened, categories and service upgrades, effectively improving store efficiency and profitability.

1Q1 company’s comprehensive gross profit margin 63.

83%, increasing by 0 every year.

73 pct, thanks to the increase in the percentage of e-commerce revenue with high gross profit margin and the increase in sales of beauty products.

The overall period expense ratio is 44.

0%, a decrease of 0 per year.

9 pct, of which the sales expense ratio decreased by 0.

51 pct, the management expense rate also increased by 0.

3 pct, mainly due to the amortization of the cost of the equity incentive grant and fair price.

In addition, the provision for bad debts reduced the asset impairment loss by 65.


A total of 19Q1 single quarter performance growth of over 30%, a slight increase of 0 each year.


Investment suggestion: The company’s main brand Po Laiya speeds up + e-commerce high growth + Youzi Laidan brand made a major breakthrough, the troika helped the company to maintain high growth in each quarter of 18Q2-19Q1, the gross profit rate reached the highest point in nearly five years, the expense ratio,Turnover capacity improved overall.

In 2019, we look forward to seeing the expansion of the profit model of Youzilai single brand stores.

In the future, it will continue to transition from singularity to multi-brand, multi-category, and multi-channel ecology. At the same time, it will increase international brand category cooperation and develop cross-border purchase channels.
We estimate that the company’s net profit attributable to mothers for 2019-2020 will be 3 respectively.

7.7 billion, 4.

92 ppm, EPS is 1.

87, 2.

44 yuan / share, corresponding to PE is 34 times, 26 times, maintaining the “buy” level.

Risk factors: new project incubation risk (large marketing expenditure, insufficient control ability of single brand stores); platform management risk; overall risk of cosmetics consumption; intensified competition with international brands.