Shanghai Jahwa (600315) 2019 third quarterly report review: Herborist is expected to continue its recovery

Shanghai Jahwa (600315) 2019 third quarterly report review: Herborist is expected to continue its recovery

Company revenue increased by 5.

8%, affected by expenses and unaffected Q3 performance exceeded expectations The company achieved revenue 57 in the first three quarters of 19.

4 trillion, the same increase of 5.

8%, achieved performance 5.

4 trillion, with an increase of 19.


The company’s Q3 revenue increased by 3.

3%, performance fell 29.

6%, lower than expected performance, mainly due to the acceleration of Q3 marketing and other expense ratios and changes in fair value led to non-economic losses of 30.54 million.

Herborist continues to improve, and emerging categories maintain rapid growth. In terms of brands, the revenue of the main brand Herborist has remained flat in the first three quarters, but has improved quarter by quarter; Liushen has increased its growth rate to a low number due to weather and other factors.It closed slightly down but Q3 has basically remained the same; Gough’s revenue declined slightly due to product changes; gradually, growth brands such as Yuze / Jia’an / Qichu / Pianzaiyu are expected to maintain rapid growth; Tang Meixing’s overseas business in Q3 due to the devaluation of the pound and foreign competitionIncrease the influence of product promotion efforts.

In terms of different channels, online revenue is expected to increase by about 19%. Special channels will achieve 60% + growth after adjustment last year. Supermarkets, mothers and infants, and CS have achieved low-number growth. Department store channels are still under the impact of international brands.Improved, but Q3 scale is expected to narrow further.

The gross profit margin was improved by the improvement of product structure, the marketing efforts increased and the expense ratio improved. From the perspective of gross profit margin, Q1-3 gross profit margin decreased by 1.

2pct, but Q3 gross margin increased by 1.

At 9 points, the proportion of beauty products with high gross profit margins increased.

During Q1-3, the expense ratio decreased by zero.

23pct, of which the sales expense ratio increased by 0.

27pct, the management expense rate decreased by 0.

22pct, in which Q3 sales and management expense rate expansion increased. The increase in sales expense rate was mainly due to the launch of new Herborist marketing. It is expected that the effect of Q4 will be improved, and the increase in management expense rate will be mainly due to management expenses under the initial background of revenue growth.rigidity.

Marketing 北京夜生活网 upgrades have launched new products, and multi-brand performance has helped to achieve breakthrough recovery. As a domestic multi-brand daily chemical leader, it has gradually become fully enjoying the high prosperity of the industry.

Q4 Herborist’s double eleven pre-sale performance has been outstanding. Tai Chi Essence has become the company’s second-ranked single product. Since its launch in September, it has accounted for more than 15% of Herborist’s revenue, helping to attract new customers and old customers.The revitalization of customers has now accounted for more than half of the new offline customers. Other brands are expected to achieve steady growth under the steady promotion of new customers.

The brand qualification highlights the low level of the estimated sector. The daily chemical leader has steadily recovered. Maintaining “buy”. Considering the impact of non-economic losses, we lowered the EPS for 19-21 to 0.



27 yuan, corresponding to PE37 / 33 / 28x. Overall, the company-to-segment comparable company ratio is still estimated to be low, and the brand matrix and category layout are leading the industry. Long-term transformation of brand construction steadily promotes the renewable period and maintains “buy”.

Risk warning: Herborist’s adjustment fails to meet expectations, and brand rejuvenation fails to meet expectations