The company expects revenue to increase 30% + year on year in '23, net profit to mother of 300-330 million, and 72-89% year on year
Marumi Co., Ltd. announced its 2023 results forecast. The company expects revenue to increase by more than 30% year-on-year in 2023, achieving net profit of 3.00 to 330 million yuan, a year-on-year increase of 72-89%, and net profit without deduction of 220 to 250 million yuan, and a year-on-year increase of 62 to 84%.
The company's revenue for 2023Q1/Q2/Q3 increased 24.58%, 34.10%, and 46.10%, respectively, and net profit increased 20.15%, 0.82%, and 1366.81%, respectively. It is estimated that 2023Q4's revenue increased by more than 22% year on year and maintained good growth during the peak season. Net profit to the mother increased by about 133-188% year on year, and profit margin increased to around 20%.
In 2023, the company actively promoted online channel transformation, and the marketing pace was properly grasped throughout the year. Among them, Marumi brand's e-commerce sales of content represented by Douyin Kuaishou increased by more than 100% year on year, and sales of makeup brand Love Fire increased by more than 100% year on year. The company firmly divides products, implements a smart single product strategy, optimizes the product structure, and reduces costs and improves efficiency.
The results of the online transformation were impressive. Continuing to promote the big single product strategy, improving the product sales momentum, and the online sales momentum improved in 2023, and the Douyin platform performed well. On the Tmall and Douyin platforms, the main brand Marumi's cumulative sales for the full year of 2023 increased 16% and 117% year over year, and the cumulative sales of the makeup brand Love Fire increased 42% and 257% year over year. The results of online channel transformation continued to show results.
Continue to promote the strategy of large single products, and deepen research and development to strengthen the moat. According to the official WeChat account, the main brand Marumi Little Red Pen Eye Cream in 2023 sold over 860,000 sticks throughout the year, and sold more than 1.07 million boxes of collagen and small gold needles throughout the year.
Also, as of January 23, '24, at Tmall's official flagship store, the main brand Marumi Koziban Eye Cream had accumulated more than 40,000 payers in the past 30 days, and the total number of payments for Crystal Diamond Eye Mask, Essence Essence, and Xiaojin Needles had been sold more than 30,000 times; the total number of payments for the past 30 days by makeup brand Koihuo had exceeded 200,000 for the past 30 days, and Invisible Powder had been paid more than 100,000.
In 2023, the company successfully hosted the 3rd Recombinant Collagen Scientists Forum, and Marumi Recombinant Double Collagen once again appeared in “Amazing Chinese Ingredient 3”, highlighting the brand's professionalism. In terms of patents, the company authorized a total of 274 patents in 2023, with 60 additional authorized patents.
Maintaining profit forecasts and “increasing” ratings, we look forward to continued high-quality growth. We are optimistic that the company will continue to stabilize and strengthen the transformation results of online channels, and continue to deepen the big single product strategy. The main brand Marumi consolidates the mentality of eye care experts+anti-aging masters, and the makeup brand Love Fire strengthens and upgrades makeup products to achieve collaborative efforts. We expect the company to continue to grow at high quality. We maintain the company's profit forecast for 23 to 25, corresponding to EPS of 0.77, 0.97, and 1.16 yuan for 23 to 25, and PE of 32 times and 27 times for 24 and 25, respectively, maintaining the “increase” rating.
Risk warning: Demand for terminal consumers continues to weaken; the transformation and expansion of online channels falls short of expectations; the recovery of offline channels falls short of expectations; the cost investment effect falls short of expectations or improper fee control; the progress or results of new product launches fall short of expectations; and industry competition intensifies.