This report is read as follows:
It is proposed to acquire domestic well-known cosmetics brand operators and integrated service providers to realize the complete industrial chain layout of cosmetic brands-KOL marketing promotion-online and offline multi-dimensional distribution channels, and the synergy effect of new channels and new categories can be expected.
Main points of investment:
Investment suggestion: the expansion of channels and categories opens the space for growth, and the integration of synergy can be expected. Assuming that the acquisition is completed at the beginning of 2019, considering the Jinjia merger table, it is estimated that the current stock price corresponds to only 11x PE in 2019, and the target price is reduced to 2018 yuan to 24.8 yuan according to the 20X PE given by comparable companies in 2019.
Shanghai Jinjia brand operation and cross-border e-commerce import business has obvious advantages, helping the company to form a complete closed-loop cosmetics industry chain. Jinjia is a cosmetics brand operator integrating brand operation, marketing, channel cooperation and warehouse supply chain management. different from ordinary generation operation companies, it helps a large number of minority overseas brands incubate brands in the Chinese market, obtains a total of 21 overseas cosmetics brand agents, currently operates Tmall international flagship store with 12 agent brands, and establishes close e-commerce cooperation with more than 20 KOL. The acquisition of Jinjia accelerates the complete layout of the company from beauty makeup brand-KOL marketing promotion-online and offline multi-dimensional distribution channels.
The industrial layout accelerates the landing, the integration synergy effect can be expected, beauty makeup + e-commerce all-round development. Based on the advantages of traditional washing and care, the company accelerates the expansion of the industrial layout of beauty plus e-commerce: 1) set up an industrial fund with Pinview, the first investment in Zhejiang representative imported cosmetics chain CS stores; 2) shares in Suqian Baibao, honey makeup information, seize mother and baby and beauty make-up head official account resources, and is expected to cooperate in e-commerce content production, flow import, fan economy and other aspects in the future. 3) holding Shanghai Jinjia, strengthening the e-commerce channel and cross-border import supply chain system of beauty makeup operation team.
Catalyst: Jinjia obtains the agency rights of more well-known overseas brands, based on the long-term cooperation between Jinjia and overseas brands to reverse brand investment acquisition, the development of their own beauty brands and so on.
Risk tips: economic downturn suppresses optional consumption; industry competition intensifies, etc.