Po Laiya (603605): Company dynamic comment on strong online performance, faster-than-expected growth

Po Laiya (603605): Company dynamic comment on strong online performance, faster-than-expected growth

High-speed revenue growth, performance growth slightly exceeded expectations: the company achieved revenue in 201823.

610,000 yuan, an increase of 32 in ten years.

43%; realize net profit attributable to shareholders of listed companies.

870,000 yuan, an increase of 43 in ten years.


Among them, 2018Q4 achieved revenue of 8.

10,000 yuan, an increase of 40 in ten years.

62%; realize net profit attributable to shareholders of listed companies.

500,000 yuan, an increase of 40 in ten years.

46%, slightly exceeding market expectations.

It is planned to distribute 4 shares for every 10 shares to all shareholders in 2018.

3 yuan cash bonus.

The gross profit margin increased, and the expense ratio decreased overall: The company increased its gross profit margin by adjusting product structure and expanding product categories2.

3pct to 64.

03%, the gross margin level is leading among domestic comparable companies; the net profit margin increased by 0.

88pct to 12.


The company’s period expense ratio decreased by 1 every year in 2018.

04pct, in which the sales expense ratio increased by 1.

86pct to 37.

52%, mainly due to the increase in marketing expenses and the increase in annual advertising expenses during the current period;

32pc to 7.

26%, mainly due to the reduction in management expenses under the platform mechanism; the R & D expense ratio fell slightly to 0.

12pct to 2.

17%; financial expense ratio decreased by 1.

46 points to -0.

54%, mainly due to a decrease in interest expenses and an increase in wealth management income.

Net operating cycle shortened and operating cash flow improved: The company’s net operating cycle was shorter than in 2017 by 33.

5 days, mainly because the inventory turnover days / accounts receivable turnover days decreased by 16 respectively.


0 days, the number of compliance account turnover days increases by 15 each year.

2 days.

In 2018, the company’s net operating cash flow increased by 53 each year.

47%, mainly due to the rapid increase in the scale of income, and the first batch of goods sold by Youzilai produced a certain credit period.

Steady growth of the main brand and rapid development of Youzilai: The company has expanded its multi-brands with “Polaya” as its core, and its brands include “Polaiya”, “Youzailai”, “Yue Fuyu”, “Hanya”, “Youya”, “Cat Rose”, “TZZ”, etc.

In 2018, the percentages of revenues of Perla / Youzai / Other brands were 88.

8% / 5.

6% / 5.6%.

Benefiting from the brand image upgrade and product rejuvenation, the main brand Polaia achieved revenue of 20%.

0.94 million yuan, an increase of 32 in ten years.

38%; through vigorously developing the operation model of single-brand stores, Youzilai achieved revenue1.

33 ppm, an increase of 41 in ten years.

46%; other brands achieved revenue1.

3.2 billion, an annual increase of 24.


Online growth is strong, and the speed at which the growth rates of various channels are combined: The company adopts a combination of online and offline sales models, and the online / offline revenue ratio is 43.

6% / 56.


On the front end, online channels maintain a rapid growth trend, with an annual growth rate of 59.


Among them, direct marketing platforms such as Tmall increased by 90.

2%, JD.com, 武汉夜生活网 Vipshop and other distribution platforms also increased 41.


At the same time, the growth rate of offline channels has accelerated, increasing by 16.


Among them, CS / Shangchao respectively increased by 7.

45% / 24.

66%, the growth rate has accelerated compared with 2017.

The revenue share of CS / Supermarket / Single-brand stores / other channels is about 42.

5% / 8.

5% / 4.

9% / 0.


Investment suggestion: The company is one of the leading cosmetics companies in the country. It maintains high growth online and accelerates offline growth. In the future, driven by the “traditional offline + single-brand store + e-commerce” troika, the revenue scale will help maintain rapidGrowth trend, predicting that the company’s EPS for 2019-2021 will be 1.

93 yuan / 2.

51 yuan / 3.

14 yuan,杭州夜网 corresponding to PE of 33X / 25X / 20X, maintain “recommended” investment rating.

Risk reminder: the industry’s prosperity is lower than expected, industry competition is intensified, channel operating costs are rising too fast, product quality risks, and channel expansion is less than expected