Marubeni Co., Ltd. (603983): Fisting product revenue in the field of eye care subdivision accelerates expansion and scale expansion
Event summary The company achieved operating income in the first three quarters of 201912.
11 ppm, an increase of 14 in ten years.
77%; realize net profit attributable to shareholders of listed companies.
590,000 yuan, an increase of 52 in ten years.
26%; realized net deduction of non-net profit3.
08 million yuan, an increase of 40 over the same period last year.
Net operating cash flow 2.
8.4 billion, an increase of 10 over the same period last year.
Our analysis and judgment (1) Q3’s revenue scale has accelerated, and the contribution ratio of eye products has gradually increased. The company achieved operating income in the first three quarters of 201912.
11 ppm, an increase of 1 over the same period last year.
By quarter, the company’s Q1 / Q2 / Q3 achieved revenue of 3 respectively.
97 ppm, corresponding to a revenue increase of 0.
700,000 yuan, a year-on-year increase of 8.
88% / 214.
38% / 21.
28%, an increase in the incremental part, a significant improvement; the second quarter was the company’s peak sales season in the first nine months, and contributed 37 in 2018/2019.
27% / 37.
15% revenue share, relatively stable performance; single quarter in the third quarter of 2019 contributed to the initial 32 so far.
74% of revenue and 44.
The 64% revenue increase is better than the same period last year.
In terms of product categories, eye / skincare / cleansing products achieved operating income in the third quarter1.
55 trillion, corresponding to 36.
72% / 49.
07% / 14.
21% revenue share.
Compared with 2019H1, it can be seen that the proportion of the company’s eye products is gradually increasing (earlier 2019H1 increased 9.
42 units), the cleansing class rises by 1.
07 supplements, corresponding to the decrease in the share of skin care products, but still contributed to the main revenue.
In terms of single quarter sales, eye / skin / cleansing products sold 185 in the third quarter.
160,000 sticks, corresponding to 22 respectively.
96% / 57.
85% / 19.
19%; the proportion of sales of eyewear products is relatively relative, but the revenue scale is relatively large, mainly due to the high product purity, which rose by 0 in the third quarter of 2019.
26 yuan) to 77.
06 yuan / piece, corresponding to the average price of skin care / cleansing products at 88 in the same period.
55% / 116.
A premium of 04%; among them, skin care products fell by 4 from the same period last year.
95 yuan), while cleansing products benefited from the 天津夜网 increased pricing of the Marube brand, so the price increase was obvious, and the average price had risen 24 in the past.
The company achieved net profit attributable to shareholders of listed companies in the first three quarters.
59 ppm, an increase of 1 over the same period last year.
23 ppm; realized attributable non-net profit3.
08,000 yuan, an increase of 0 over the same period last year.
8.8 billion yuan.
Non-recurring gains and losses mainly contain zero.
$ 3.6 billion in government grants and financial asset investment income.
(2) The comprehensive gross profit margin decreased by 0.
25pct, during which the rate of expense increased significantly5.
63pct’s consolidated gross profit margin for the first three quarters of 2019 was 67.
95%, a decrease of 0 compared with the same period last year.
In the first three quarters, operating costs increased for ten years.
69%, an increase exceeding the corresponding revenue growth rate, of which Q1 / Q2 / Q3 operating costs increased by 8 compared with the same period last year.
56% / 17.
67% / 21.
03%; rising operating costs dragged the company’s gradual increase in gross profit margin from the first half of the report to 0.
The only additives (-15%) and liquid oils (-12%) in the raw materials required for the company’s production have been supplemented and dispersed at the average purchase price in a single season; water-soluble humectants (+ 10%), emulsifiers (+ 13%) And surfactants (+ 6%), due to structural adjustments of imported raw materials or import exchange rate factors, the average price of single-quarter purchases rose compared to the same period last year.
The packaging of raw materials in paper is affected by the upstream paper price. The price of carton will increase by 20%, and that of bottle and packaging will increase by 8% / 10% respectively.
The company’s comprehensive expenses during the period 36.
20%, about 5 in the same period last year.
63 single, sales / management (excluding R & D) / financial / R & D expense ratios are 30.
18% / 5.
46% / 2.
30%, a change of -4 over the same period last year.
82 / + 0.
26 / -1.
01 / 0-0.
While the sales volume in the first three quarters kept growing, the company’s actual sales expenses incurred a reverse decline, a decrease of zero compared with the same period last year.
0.4 billion, down by 1 every year.
03%, of which the single quarter in the third quarter decreased by 0.
(3) Strengthen the research and development to improve product quality, develop multi-brands to meet consumer demand. The Japanese chief research and development engineer enters the company’s research and development team. The affiliated Guangzhou, Japan, and Tokyo dual-core research and development center and Jinan University and other well-known colleges and universities work together to integrate skin care technology with China-specific skin careDemand docking, applying international cutting-edge technology, tapping more rare anti-aging extracts derived from nature.
The reporting companies continue to strengthen the research and development reserves of products and formulas, improve the quality of research and development, and improve the efficiency of research and development.
At the same time, the company conducts strategic cooperation with raw material suppliers, conducts comprehensive evaluation of functional raw materials, and safely substitutes products.
At the same time, the company insists on improving the brand layout of Marumei brand + Chunji + Lianhuo.
Among them, the Marube brand attaches great importance to strengthening brand building and conforms to the trend of high-end. Through the Marube Tokyo series, it further consolidates Marube’s competition in the high-end anti-aging field.
Essence is one of the categories that has grown rapidly in recent years. While stabilizing the eye cream ace and the existing hot series of essences, the company has increased the intake of essences.
Aiming at the Chunji brand, the concept of skin-care and skin-restoring is younger and younger, and the love-fire brand continues to make efforts in the field of make-up through the concept of “combination and nourishment”.
(IV) Active marketing enhances brand exposure, and omni-channel construction links consumer companies to introduce a spokesperson + gold single product + stable advertising strategy.
Maru ‘s brand competitiveness, Zhou Xun, Peng Yu Yan Qiangqiang combined, and Chun Ji was promoted by Wu Jinyan’s popularity.
Marubeni’s stretch protein eye cream has been the company’s star product, and has been well received and praised by consumers since its launch in 2007. In 2019, the company’s main product is the fifth-generation product Marume stretch protein eye serum.
At present, the company’s main channels for advertising marketing are basic boarding passes such as airport boarding, and the implantation of online script sites and screencasts (iQiyi’s Biography of Hao Lan, Wife’s Romantic Travel 2), and Extreme Challenge 5″” Etc.), star photos (Yuan Shanshan, Shen Mengchen, Guo Biting, and other grass planting groups), the placement of advertising patches, while promoting social platform applications (WeChat, Xiaohongshu, Douyin, etc.), multi-dimensional force.
In addition, the company continues to promote an omni-channel strategy of online and offline integration, matching channels and brands, more channel innovation and support, and promotion of excellent store operation models.
In 2019, the Retail Core Academy was officially established to provide special support for the retail service and training and education system construction of the Marumi premium chain stores in offline channels, adhere to the four positions of members, shopping guides, stores, and products, and build a user-centric full-process experience while strengtheningProduct promotion, display design, ground promotion, training and other dedicated team support to ensure the implementation of marketing policies.
Online e-commerce channels continue to operate on mainstream e-commerce platforms through cooperation with outstanding third parties.
Investment suggestion We believe that the company’s brand layout and product structure are constantly optimized. Fist products focus on the segmentation of eye care. Eye cream / essential products are among the best in domestic eye care sector. At the same time, Maru, Chunji, LoveHuo’s three brands target different consumer needs, helping the company to gradually target a wider range of potential consumer markets.
In addition, the company’s key product R & D and upgrades, combined with active and effective marketing and promotion strategies, have steadily promoted its improvement through a combination of online and offline omnichannel methods.
Considering that the company’s overall performance strategic planning is effective, the cost control results are significant, and the scale of revenue and net profit has achieved healthy growth, we predict that the company will achieve revenue 18 in 2019/2020/2021, respectively.
9.2 billion, net profit 5.
52 trillion, corresponding to a PS of 14.
32 times, corresponding to PE is 53/49/41 times, for the first time given the “recommended level”.
The risks indicate the risk of intensified competition in the cosmetics industry, and the product marketing effect is less than expected.