Shanghai Jahwa (600315): Multi-brand matrix coordinated development and steady improvement in operation quality

Shanghai Jahwa (600315): Multi-brand matrix coordinated development and steady improvement in operation quality

Event: The company’s H1 revenue in 2019 was 39.

2 ppm, + 7% per year, net profit attributable to mother 4.

400 million, +40 per year.

1%, net profit after deduction is 2.

600 million every year 9.


Among them, Q2 achieved revenue of 19 in a single quarter.

7 trillion, ten years +9.

1%, net profit attributable to mother 2.

1 ‰, +26 a year.

8%, plus 14 for the next ten years.


The gross profit margin decreased, and the growth rate of the expense ratio decreased during the period: (1) The gross profit margin decreased due to the adjustment of product structure: the company’s gross profit margin for H1 in 2019 decreased by 2.

66pp to 61.

94%, of which Q2 single quarter gross margin extension is 0.

At 71pp, the increase in gross profit margin was mainly due to dissatisfaction with the maximization of production capacity after the launch of the new plant and product structure adjustment.

(2) The expense ratio during the period has decreased, and the operating efficiency has improved significantly: the company’s expense ratio during the H1 period in 2019 decreased by 1.

56pp to 56.


Breaking down items by item, the selling expense ratio decreased by 0.

36pp to 43.

5%, “Management + R & D” expense ratio decreased by 0.

76pp to 12.

6%, financial expense rate interest rate is 0.

44pp to 0.

61%, the company’s expenses have 天津夜网 been improved, and performance has improved significantly.

(3) Non-recurring income mainly comes from non-current assets disposal gains and losses1.

3.8 billion yuan, government subsidies of 13.75 million yuan, and investment income of 60.11 million yuan.

Everyone enjoys the top ten brands, and head brands will enjoy the bonus of industry scale growth.

(1) The company owns ten brands including Herborist, Liushen, etc., forming a multi-category protection city river. Among them, the first half of the year achieved 25% growth, and Jiaan, Yuze, and Pien Tze Huang grew in the 35% -55% range.A higher digital growth, Liushen achieved a digital growth, Herborist, Gao Fu, the United States and Canada fell slightly.

(2) As far as the brand is concerned, Herborist is the first domestic brand of cosmetics in department store channels, with Liushen Hualushui occupying 74.

8%, Meijiajing’s market share in hand cream category ranked first, Gough replaced men’s facial cleansing and cream category in the fourth, Qichu ranked first in the baby cream and shower gel category, some brands will enjoy the industry scale growth bonus in the future.
Sitting on eight channels, online and offline omnichannel development.

The company has eight major channels including dealer distribution, direct sales of KA, mother and baby, cosmetics specialty stores, department stores, overseas, e-commerce, special channels, etc. In the first half of the year, the GMV sales of the entire network increased + 31%, and the growth rate of the special zone exceeded 60%.The average number of mother and baby and CS channels has increased. The department store channels have faced pressure from international big names, but the decline has narrowed significantly in Q2. The company ‘s offline channels are deeply entrenched and online channels are gradually gaining momentum.

Profit forecast and rating.

It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 700 million and 7 respectively.

800 million, 8.

900 million, the EPS is 1.04 yuan, 1.

17 yuan, 1.

32 yuan, corresponding to PE is 33/30/26 times, maintaining the “overweight” level.

Risk warning: offline channel expansion may be less than expected; industry competition or intensification; product sales may be less than expected.