Pollya (603605) Company dynamic comment: Revenue continues to increase and non-net profit growth is bright

Pollya (603605) Company dynamic comment: Revenue continues to increase and non-net profit growth is bright

Core point of view events: The company released its 2019 semi-annual report and achieved operating income in the first half of 201913.

28 ppm, an increase of 27 in ten years.

48%; realize net profit attributable to shareholders of listed companies.

7.3 billion, an increase of 34 in ten years.

49%; net profit attributable to shareholders of the parent company after deduction.

710,000 yuan, an increase of 39 in ten years.

40%.

The basic return is 0.

87 yuan, an annual increase of 35.

94%.

  19Q2 revenue continued to grow rapidly, deducting non-profit growth rate exceeded 40%.

The company achieved revenue of 39 in the first half of 2019.

23 ppm, an increase of 27 in ten years.

48%; net profit attributable to mothers1.

7.3 billion, an increase of 34 in ten years.

49%; net profit deducted from non-attributed mothers1.

710,000 yuan, an increase of 39 in ten years.

40%.

The company achieved revenue in the second quarter alone.

860,000 yuan, an increase of 27 in ten years.

39%; net profit attributable to mother is 0.

820,000 yuan, an increase of 39 in ten years.

39%; net profit deducted from non-attribution to 0.

80 ppm, an increase of 44 in ten years.

31%.

In view of the company’s second-quarter revenue, the performance growth rate has maintained a high growth trend, and it has tracked the growth of e-commerce GMV for 7 months. There are also a number of explosives in the second half of the year.Bigger and bigger.

  The gross profit margin increased significantly, and the expense ratio also increased during the period.

19H1’s gross profit margin was 65.

78%, an increase of 3 per year.

6 points.

The gross profit margin in the second quarter was as high as 67.

6%, which is the highest in a single quarter since 2016, mainly due to the increase in the proportion of direct e-commerce companies with higher gross profit margins, as well as the proportion of categories with higher gross profit margins such as toners and essences.

During 19H1, the expense ratio was maximized by 2.

08pct to 47.

82%.

Among them, the selling expenses were 39.

4%, increase by 1 every year.

77pct is mainly for the promotion of explosive products, the increase in image promotion and promotion rates.The management expense ratio is increased by 0 in advance.

73pct to 6.

72%, mainly due to an increase of 1042 in share-based payment expenses.

360,000 yuan, and management employees’ salary increased.

R & D expense 成都桑拿网 ratio increased by 0.

19 points to 2.

18%.

The financial expense ratio drops by 0 every year.

61pct to -0.

48%, mainly due to increased interest income from short-term financial management such as structured deposits.

On the whole, in the second half of the year, combined with factors such as facial mask sales and e-commerce promotions, the gross profit margin is expected to exceed flat or slightly increase.

Considering that the budget for explosives promotion in the second half of the year is expected to continue, and confirm the share payment expenses, how to sell expenses, management costs are expected to increase every year.

  The inventory turnover days decreased and the accounts receivable turnover days increased.

19H1 inventory turnover days was 97.

36 days, reduced by 2 every year.

In 78 days, the 青岛夜网 turnover of finished products was mainly improved.

Accounts receivable turnover days are 16.

63 days, increase by 8 every year.

The 44-day period was mainly due to the rapid growth of e-commerce distribution during the “618” period and support for the new brand account period. The overall account receivable turnover remained relatively fast.

Payment of taxes and fees increases by 1.

200 million, mainly because the deduction fee for 2018 was paid in 19Q1.

Affected by the increase in accounts receivable, the increase in taxes and fees, and the decrease in advance receivables, the company’s net cash flow from operating activities in 19H1 was -0.

5.9 billion.

  The online growth rate is close to 50%, and the offline growth rate is slightly faster for ten years.

In terms of online channels, 19H1 achieved revenue of 6.

110,000 yuan, an increase of 48.

08%, slightly slower than the same period last year (18H1 also increased 58.

46%).

The online share is 46.

01%, an increase of 6 a year.

47 points.

In terms of offline channels, 19H1 achieved revenue of 7.

1.6 billion yuan, an increase of 13.

65%, slightly faster than the same period last year (18H1 also increased by 9).

6%).

Specifically, CS / Mall / Single-brand stores / other channels achieved revenue5.

25/0.

95/0.

74/0.

2.2 billion, an increase of 11 respectively.7% / 13.

1% / 10.

45% / 1.

66%.

Compared with before 2018, the growth rate of the CS channel has accelerated slightly, mainly due to the increase in sales of new products; and due to the change in the flow of people and the intensified competition, the growth of the channel growth of the supermarkets and single-brand stores has slowed down. It is expected that the company will passPeriodic adjustments reinjected growth momentum into single-brand store channels.

  Investment suggestion: The company is one of the leading cosmetics companies in the country, and it is deeply cultivating online and offline channel integration. In the future, it will focus on ecologicalization, platformization, internationalization, and youthfulness, and its revenue scale will maintain a rapid growth trend.EPS are 1.

93 yuan / 2.

51 yuan / 3.

14 yuan, corresponding to PE of 40X / 30X / 24X, maintain “recommended” investment rating.

  Risk reminder: The industry’s prosperity is lower than expected, industry competition is intensified, channel operating costs have risen too quickly, product quality risks, and channel expansion has fallen short of expectations.