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上海家化(600315):组织架构优化革新 品牌重塑全面升级

Shanghai Jiahua (600315): Organizational structure optimization, innovation, brand reshaping and comprehensive upgrading

Incident: The company achieved operating income of 3.321 billion yuan in the first half of 2024, -8.51% YoY, and net profit to mother 0.238 billion yuan, or -20.93% YoY. Among them, 24Q2 achieved operating income of 1.415 billion yuan, -14.21% year-on-year, and net profit to mother -0.018 billion yuan, or -125.80% year-on-year.

Enhance the brand's core competitiveness and focus on online e-commerce to break through interest. By division, 24H1 Personal Care/Beauty/Innovation/Overseas Division achieved revenue of 15.88/0.566/0.447/0.714 billion yuan. Among them, the personal care category Liushen brand focused on the mass market and deepened cooling product lines. Meijiajing focused on the mass women's market, positioned the ultimate cost performance ratio, and achieved significant growth in e-commerce based on interest; Yuze in the beauty category focuses on sensitive skin and medical post-art care. It is committed to creating medical and aesthetic restoration products. Baicaoji focuses on skincare categories with anti-aging and whitening effects, and pursues both quality and price. By channel, the company continues to increase online, focusing on breaking through online e-commerce interests, expanding offline retail channels, accurately matching brand positioning, and creating a differentiated channel matrix.

The performance adjustment period was under phased pressure, and the cost rate declined steadily and slightly during the period. The purchase price of raw materials declined, and the growth rate of different categories was different. 24H1's gross profit margin was 61.13%, +0.88pcts year-on-year. In terms of expenses, 24H1's sales/management/R&D rate was 43.41%/7.56%/2.07%, respectively, -0.11/-0.79/-0.07pcts year on year, but 24Q2 overseas business investment increased, and the overall rate increased. Taken together, 24H1's net interest rate was 7.17%, -1.13pcts year on year.

Organizational structure has been optimized and innovated, and brand reshaping has been comprehensively upgraded. The company continues to deepen the reform of the division system, reorganize the entire nursing and beauty division, and establish a new innovative division. A new brand strategy has been established. By managing and focusing on resources in three gradients, the leading brands in the industry segment are positioned as “quality-price ratio” brands, a new brand positioning has been created, and a new starting point for the company's high-quality growth has been built.

Investment suggestions: The company improves the organizational structure, focuses on brand building, reshaping brand assets through graded management, focuses on breaking through online e-commerce interests, and looks forward to remarkable results brought about by subsequent reforms. The company's EPS is expected to be 0.71/0.83/0.96 yuan from 2024 to 2026, corresponding to the latest PE by 21.2/18.1/15.7 times, respectively, maintaining the “gain” rating.

Risk warning: Industry competition intensifies; new product promotion falls short of expectations; strategic transformation falls short of expectations.

The translation is provided by third-party software.


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