Q2 The company achieved rapid growth, and net interest rate increased significantly year-on-year
Perraial released its semi-annual report. In 2023, H1 achieved revenue of 3,627 million yuan (yoy +38.12%), net profit of 499 million yuan (yoy +68.21%), net profit of 499 million yuan (yoy +68.21%), minus non-net profit of 479 million yuan (yoy +70.49%). Among them, Q2 achieved revenue of 2,005 billion yuan (yoy +46.22%, qoq +23.68%) and net profit of 291 million yuan (yoy +110.41%, qoq +40.10%). The main brand has strong strength, Cai Tang's potential is improving, OR/Yue Futian is growing rapidly, and the company has bucked the trend and achieved high growth in an unfavorable market environment. Since '22, the beauty industry has generally faced pressure from high online channel traffic costs, while the company's 22Q2 net interest rate has increased year-on-year, and α continues to stand out. Maintaining the profit forecast, the company's EPS is expected to be 2.97, 3.90, and 5.16 yuan in 2023-2025. Comparable companies, Wind, unanimously expected an average PE value of 32 times in '23, and the company's growth rate was significantly superior to that of peers. It gave it 50 times PE in '23. The target price was 148.5 yuan, and the “buy” rating was maintained.
The main brand has strong strength, Cai Tang's potential is rising, and OR/Yue Futian is growing rapidly 23H1. Split by brand: Perraia 2,892 million yuan/yoy 35.86%, Cai Tang 414 million yuan/yoy 78.65%, OR 97 million yuan/yoy 94.17%, Yue Fu Ty 132 million yuan/yoy 64.80%, other brands 84 million yuan/yoy 10.71%. 23H1 was split by category. Skincare category was 3,056 million yuan/yoy 38.06%, makeup category 466 million yuan/yoy 32.30%, and skin care category 97 million yuan/yoy 94.17%.
The revenue of major products such as the Ruby/Duangdong/Yuanli series accounts for 50% + of the main brand's revenue, 75% + of the Tmall platform, about 60% of the Douyin platform, and 55% + of JD's direct management. The sales volume of the 23H1 dual antibody series is about 100% yoy, the ruby series yoy is 70% +, and the Yuanli series yoy is 36% +. The H1 Caitang, Yue Fu, and OR brands all achieved profits in 2023, and the net interest rate was still lower than the overall net interest rate.
Online channels continue to grow
23H1 is split by channel: online 3.3 billion yuan/yoy 44.23%, of which direct management is 2,659 million yuan/yoy 52.36%, distribution is 671 million yuan/yoy 19.04%; offline 289 million yuan/yoy -5.81%, of which daily chemical stores are 241 million yuan/yoy 5.64%. 23H1's main brand Perrayal's share of revenue from each online platform:
Tmall 45% +, Douyin 20% +, JD 10% +. 23H1's main brands, Tmall and Douyin, all have an ROI of 3 or more, and the repurchase rate is 38%/20% respectively, demonstrating the refined operation capabilities of e-commerce channels.
Q2 Net interest rate recovered significantly year over year
23Q2 gross profit margin 79.95% /yoy-1.19pct, sales expense ratio 43.83% /yoy1.15pct, management expense ratio 4.83% /yoy0.28pct, R&D expense ratio 1.98% /yoy-0.29pct, financial expense ratio -0.82% /yoy-0.19pct. 23Q2 The company's net sales interest rate reached 15.26% /yoy5.11pct, mainly due to the depreciation loss of about 55 million dollars generated by sunscreen products in the same period last year. Q2 Net operating cash flow was $771 million, a significant increase from $372 million in the same period last year.
Risk warning: Consumption is sluggish, new product performance is poor, and marketing costs are rising.