Shanghai Jahwa (600315): 18-year performance meets expectations 19-year focus on Herborist renewed efforts

Core point of view The company’s operating income and net profit increased by 10 in 2018.

01% and 38.

63%, net profit after deduction is 37.

82%, 18 years of non-recurring gains and losses mainly come from government subsidies related to the operation of the new plant.

In the fourth quarter, the company’s operating income and net profit increased by 11 in each quarter.

66% and 42.

15%, the revenue growth rate has improved from the first three quarters.

In the weak retail environment in the second half of 2018, Jahwa as a whole maintained a steady upward trend.

The company proposes to distribute 0.

25 yuan cash bonus.

  In 18 years, the company’s comprehensive gross profit margin temporarily decreased2.

14pct, mainly due to the mediocre revenue performance of Herborist and Gough, which have high gross profit margins, and the increase in depreciation after the new plant in Qingpu went into operation; the expense ratio fell during the period2.

78pct, in which the sales expense ratio and management R & D expense ratio decreased by 2 respectively.

17 points and 1.

00pct, showing good cost control capabilities.

Initially, the company’s operating net cash flow is basically flat every year, and after excluding tax effects, it is expected that the growth of cash flow will exceed the growth rate of revenue.

At the end of the year, the company’s accounts receivable increased by 11 compared with the beginning of the year.

16%, the inventory increased by 16 earlier.


  In terms of brands, driven by youthful marketing and new product development, it is expected that in the 18 years, Liushen, Meijia and Net will achieve rapid growth. At the beginning of the year, Jiaan and Yuze maintained high growth; the acquired CaymanA2 had 18 years of operating income and net profit.Increased by 13% and 103% respectively, and the profit significantly exceeded the promised performance.

In terms of different channels, the company’s online revenue increased by 13 in 18 years.

At 11%, Jahwa’s e-commerce segment began to target platforms and brands in 17 years, and successively adjusted dealers and TP. In 18 years, mainstream e-commerce platforms are expected to maintain a growth rate that exceeds the platform.

  Practice a multi-brand and multi-channel strategy to build a century-old daily chemical leader.

Driven by factors such as brand rejuvenation, marketing media innovation and promotion, and continuous upgrades and upgrades of new products, Jahwa has been associated with Liushen, Meijiajing and other traditional brands. They have continued to give new impetus to them in the past 18 years. In 1919, Herborist will continue to optimize 天津夜网 brand and consumer positioning and enhance products.Structure, rich channel layout, and expect sales market growth to pick up; e-commerce business is expected to continue to benefit from the increase in online penetration and maintain good growth; the development of the Mayborn Group’s China market will bring new increases.

The company’s new Qingpu plant was put into operation in 18 years, which will effectively strengthen the production capacity of Jahwa and the response speed of the supply chain. The increase in capacity utilization will also ease the increase in depreciation costs.

  Financial Forecast and Investment Recommendations According to the annual report, we lowered the company’s expense ratio and gross profit margin forecast for the next three years. The company’s 2019-2021 earnings are expected to be 0.

9杭州夜网2 yuan, 1.

07 yuan and 1.

25 yuan (Originally predicted that the annual income in 19-20 years will be 0.

92 yuan and 1.

11 yuan), DCF target estimated value of 35.

07 yuan, maintaining the company’s “overweight” rating.

  Risk warning: the impact of abnormal weather on sales, fluctuations in sales of e-commerce and special sales channels, etc.