Zhijun Finance APP learned that CITIC Securities released a research report stating that based on the high performance of 618, it is expected that the annual performance of Jiyu Biopharmaceuticals (02367) will exceed previous expectations, and the adjusted net profit forecast for 24-25 will be raised by 5%/5% to 1.92/2.28 billion yuan. Maintain the "outperform the industry" rating and raise the target price by 7.5% to 57 Hong Kong dollars. During the 618 promotion period (May 15 to June 20), KFJ and KLF online full-channel GMVs increased by +60%/+100%+, and the sales of multiple star products ranked first in sub-categories. The brand momentum continues to be released, and the bank believes that it is expected to lay a solid foundation for Q2 performance. and reaffirm its bullish view of its broad growth space as a heading for collagen protein reorganization, and raise its full-year performance expectations.
CICC's main points are as follows:
1. KFJ and KLF 618 promotion momentum is outstanding, laying a high-growth foundation for Q2 performance.
According to the company and official Tmall battle reports and Feigua Douyin rankings, during the 618 promotion period: 1) KFJ: the online full-channel GMV increased by more than 60% year-on-year, of which Tmall/Douyin/Jingdong/Vipshop increased by 50%/65%/100%/200%, and KFJ ranked 12th in Tmall's beauty category (not in the top 20 last year)/Top 3 in China's own goods, Top 3 in wound dressings, and Top 1 in facial essence; ranked ninth in Douyin's mid-year big promotion skincare brand list (up 7 places from last year)/Top 3 in China's own goods, and Top 1 in self-broadcast list of daily brand flagship stores; ranked fifth in Jingdong's big promotion Chinese goods brand hot sales list, and Top 1 in medical and beauty care categories; 2) KLF: the online full-channel GMV increased by more than 60% year-on-year, of which Tmall/Douyin/Jingdong/Vipshop increased by 50%/65%/100%/200%. Both brands significantly outperformed the cosmetics industry, further increased their market share, the bank believes that it is expected to lay a solid foundation for Q2 performance.
2. The momentum of star products continues to be released, the second-tier product matrix is successfully cultivated, and the further verification of sustainable growth.
In terms of single-product performance, 1) KFJ: According to the company's battle report, collagen rods ranked first in Tmall's facial essence during the 618 period, and the liquid essence was the top domestic product on Douyin. According to Jiuqian and Feigua, collagen rods have more than doubled year-on-year on Tmall+Douyin, and continue to break through the ceiling of single-product sales; at the same time, the focus on new product face cream has been successfully cultivated, ranking first in Tmall's new face cream list/Douyin brand collagen protein cream popularity list, contributing 12% of Douyin GMV during the 618 period, and subsequent volume can be expected; 2) KLF: According to the company's battle report, the core single product collagen membrane king and Pang Pang's increase were 100%/60% respectively, while the new product Gel Film Face Cream ranked fourth in Tmall's new tightening face cream list, and collagen roll eye cream ranked first in Douyin collagen protein eye cream popularity list. The second-tier product matrix is successfully cultivated, further verifying the company's continuous advancement in product development and operation capabilities, as well as the sustainability of long-term growth.
3. Reaffirming its bullish view of the company's broad development prospects as a leading player in collagen protein reorganization.
Looking ahead, the company's development logic is clear: 1) cosmetics: the growth momentum of star products is still maintained, the second-tier products relay to start up, and the matrix development is more balanced and healthy; 2) medical beauty: the bank expects that two non-cross-linked and two cross-linked collagen protein medical devices will steadily promote the certification work, and the previous preparations will also be carried out in an orderly manner. The bank believes that it is expected to build the second growth curve.