Pollya (603605) 2019 Third Quarterly Report Review: Third Quarter Revenue Growth Accelerates Explosion Strategy Success

Pollya (603605) 2019 Third Quarterly Report Review: Third Quarter Revenue Growth Accelerates Explosion Strategy Success

Event: Pollya released the third quarter report of 2019.

Comments: Revenue and profit maintained high growth, and the performance was in line with expectations. From January to September 2019, the company achieved operating income of 20.

80 ppm, +33 in ten years.

35%, operating income in the third quarter 杭州桑拿网 of a single quarter.

52 ppm, an increase of +45 per year.

15%.

On January 9, 2019, the company achieved net profit attributable to mothers2.

400,000 yuan, an annual increase of +32.

04%, net profit after returning to the mother 2.

380,000 yuan, an increase of 41 in ten years.

50%.

The company’s gross profit margin was 63 on January 9, 2019.

85%, ten years +0.

71 points; 39 sales expenses.

43%, ten years +0.

58 points, management costs 6.

84%, ten years +0.

31pct, the net profit margin of the mother 11.

54% every year -0.

11%.

“Broken product strategy” drives Q3 revenue growth to accelerate, e-commerce channels maintain high-growth reporting channels, the company accurately grasps industry trends, and successfully launches the Douyin channel to create over one million pieces of explosive single 深圳桑拿网 product “Black Sea Salt Bubbles””Foam mask” will drive the company’s revenue growth faster. In terms of channels, from January to September 2019, the company’s e-commerce channel growth rate was 60% +, while offline channels maintained a growth in number.

Investment advice and profit forecast The company is a leading domestic cosmetics company. It has a precise grasp of channel and industry trends, and its long-term online growth dividend has driven the company’s high-performance growth.

In terms of products, the company focuses on “explosion strategies”, overlapping new forward-looking content marketing methods, focusing on “young”, “fun” and “fun”, and successfully launched a number of core single products.

In addition, the company flexibly faces market changes, and continues to develop new brands and new categories through agents, mergers and acquisitions, partnership investment and other methods, and uses platform advantages to empower small and medium-sized brands, actively respond to industry changes, and strive to capture new industry outlets.

After the explosion of the “bubble mask” in the third quarter, the company’s revenue growth accelerated, and at the same time, a large number of new customers acquired by the explosives strategy tried to drive sales of the company’s other products.

The 2019-2021 EPS is expected to be 1.

90/2.

49/3.

1, corresponding to PE is 46.

33/35.

31/27.

91, raise 6-month target price to 99.

60 yuan, maintain “Buy” rating.

Risks suggest that the industry’s prosperity is declining, competition in the brand market is intensifying, and incubation of new projects is not up to expectations.

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