① In 2023, the company's net profit was estimated to increase 124% to 156% year on year. The company said that, first, after optimizing the company's overall business and product structure, the share of high-margin brands increased; second, the sales model was optimized, and the overall gross profit increased. ② The sales growth rate of the company's high-end product, Ifidan, exceeded expectations in overseas markets in 2023, and maintained rapid domestic growth.
Finance Association, January 18 (Reporter Huang Lu) The Q4 net profit growth rate of Shuiyang shares (300740.SZ) was stable during the Q3 off-season last year, and the Q4 net profit growth rate exceeded expectations. This evening, the company released a performance forecast showing that in 2023, the company's net profit had more than doubled year-on-year. The company said that, first, after optimizing the company's overall business and product structure, the share of high-margin brands increased; second, the overall gross profit increased by optimizing the sales model.
According to the forecast, Shuiyang Co., Ltd. achieved net profit of 280 million yuan to 320 million yuan in 2023, an increase of 124% to 156% over the previous year; after deducting non-net profit of 260 million yuan to 300 million yuan, an increase of 169% to 210% over the previous year.
According to financial reports, the company achieved operating income of 3.377 billion yuan in the first three quarters of 2023, an increase of 1.04% year on year; realized net profit of 180 million yuan, an increase of 51.36% year on year. Looking at Q3 alone, the company's revenue decreased 4.68% year on year, and net profit increased 4.03% year on year (after deducting the year-on-year increase of 30.21%).
Q3 performance fell short of market expectations. Why did Q4 strike back again? Mainly due to the Q3 forward foreign exchange contract, the company's fair value changed by 13.13 million yuan; in addition, the company's Q3 sales rate increased year-on-year, or due to increased marketing investment and energy for Q4 promotion.
Judging from the changes in the gross margin of the company's products, the company's gross profit margin for the first three quarters was 58.01%, up 2.8 percentage points from the previous year. The gross margin for the third quarter reached 60.32%, up 4.71 percentage points from the previous year, reaching a record high. When the company was surveyed by the agency, it was also revealed that the main reason was the optimization of the business structure and the product structure of its own brand.
Shuiyang Co., Ltd.'s own brand has formed a “2+2+N” brand matrix. The first 2 are Ephidan (EDB) and Mudshop, the second 2 are Big Droplets, Little Blur, and N are some up-and-coming brands, such as VAA, Mu, HPH, etc. A relevant person from the company told the Financial Federation reporter that Ifidan's overseas sales growth rate has exceeded expectations, and the domestic market has also maintained rapid growth.
According to Jiuqian data, the Yifidan brand continued to grow in 2023Q4, with Tmall + Douyin GMV +39% year over year; Tmall + Douyin GMV +19% year over year in December alone. In addition to selling high-end products from Ifidan, Shuiyang Co., Ltd. has also optimized the product structure and added new products such as essence cream and sunscreen. The company source mentioned above said that the company's CP portfolio gradually surpassed Super Mask to become the largest single product, and the overall customer unit price of the brand also reached the level of 2,600 yuan from 1,800 yuan.
Sandalwood Rosewood e-commerce data monitoring shows that in December of last year, online sales of cosmetics improved further, with a year-on-year increase of 24%, which in turn led to an increase in the year-on-year growth rate of 4% in 2022 to 8% for the whole of 2023, and the industry as a whole showed a recovery trend.
It is worth mentioning that the high performance increase of Shuiyang Co., Ltd. in 2023 also has a certain relationship with the low performance base in 2022 (the net profit increase for that year was -47.2%). According to the equity incentive plan issued by Shuiyang Co., Ltd., the assessment targets are net profit for 2023 and 2024 (after excluding the impact of equity incentive expenses) of not less than 300 million yuan and 400 million yuan respectively, corresponding to +140%/+33% year-on-year. If calculated according to the median net profit forecast above, the company is expected to meet the 2023 assessment target as scheduled.