Shanghai Jahwa (600315): Herborist Q2 single quarter recovery Liushen imitated performance in line with expectations

Shanghai Jahwa (600315): Herborist Q2 single quarter recovery Liushen imitated performance in line with expectations

In the first half of 2019, the company’s revenue increased by ten years.

0%, as expected.

1) In the first half of 19, the net profit after deducting non-attributed mothers increased by 9 each year.

5%, margins improved.

H1 income in 19 years grew by 7 in ten years.

0% to 39.

200 million US dollars, net profit attributable to mothers increased by 40 per year.

1% to 4.

US $ 400 million, mainly due to the relocation of the subsidiary Jahwa Pharmaceutical to recognize the gains from asset disposal.

4 ‰, the other Sephora investment income contributed about 70 million yuan in profits, net of non-attributed mothers’ net profit growth.

5% to 2.

600 million.

2) The improvement of Herborist in Q2 of the single quarter of 19th, which led to a slight increase in revenue growth from the previous quarter.

Single-quarter revenue in the second quarter of 19 increased by 9 per year.

1% to 19.

700 million, net profit attributable to mothers increased by 26 each year.

8% to 2.

1 ‰, net profit after deducting non-attribution will increase by 14 per year.

4% to 1.

0 million yuan, margin improved slightly.

In terms of business segments, the original cosmetics + personal care brands were stable, and government compensation and investment pushed up the level of net profit.

1) Revenue split: The income was canceled and Tang Meixing calculated that in 19H1, the original cosmetics and personal care brands had revenue 31.

0 million yuan, an increase of 6 in ten years.

8%, steady growth.

2) Profit split: other income is recognized in this period.

60,000 yuan, mainly due to the relocation of the Qingpu factory to carry over, investment income of 0.

800 million US dollars, mainly Sephora investment income, asset disposal income1.

400 million, mainly due to the relocation of Jahwa Medicine, and the acquisition of baby brand Tang Meixing contributed 0.

310,000 yuan, an increase of 29 in ten years.


Gross margin decreased slightly, expenses were well controlled, and accounts receivable remained to be improved.

1) Depreciation of new plant and adjustment of product structure dragged down gross profit margin2.

7 points.

19H1 company’s gross profit margin fell 2.

7pct to 61.

9%, mainly due to the new factory incurred depreciation costs of 30 million in the first half, in addition, Herborist mainly promote low-margin products such as freeze-dried masks, dragging down the gross profit margin.

2) Sales and management expenses are properly controlled, and net profit margin is increased by 2.

7 points.In 19H1, the sales expense ratio decreased by 0 every year.

4 points to 43.

5%, the management expense ratio (including research and development expenses) decreases by 0 every year.

8 points to 12.

6%, the future expense ratio is expected to remain stable, and the net profit margin will increase every year.

7pct to 11.


3) Inventory decreased slightly, and receivables caused by e-commerce platform interim payment increased by 17.

1%, operating cash flow continued to improve.

H1 inventory in 19 decreased slightly in half a year.

2% to 9.

7 trillion, accounts receivable increased by 17.

1% to 12.

The US $ 500 million was mainly due to the intertemporal payment of an e-commerce platform, not the account receivable amount reached about 7% after the impact, which was in line with revenue, and the net operating cash flow exceeded growth.

7% to 5.

400 million, development is good.

The brand-side Herborist recovered in Q2 in a single quarter, the growth rate of Liushen changed abruptly, and the special channel resumed growth. The overall e-commerce performance was better.

1) Brand side: The main brand Herborist recovered in a single quarter, the number of Liushen increased, the growth rate of emerging brands was higher, and Gaufer and the United States and Canada were under pressure.

In 19H1, Herborist seasonally declined, and Q2 recovered in a single quarter, showing double-digit growth. In the second half of the year, Tai Chi essence will be created as a star product, and the recovery is expected to continue; Liushen is affected by low summer temperatures and intensified competition.In the adjustment, Gough and the United States and Canada have shifted slightly in the past few years, and the revenue at the beginning of the year has increased by 25% +. Jia’an, Yuze and Pianzizhen have increased by more than 35% -55%, and the growth rate is ideal.

2) Category: In Q2 of 19, about 70% of the two care products category, the price of beauty skin care products increased by 17.

8%, home care products grew rapidly.

The company’s beauty skin care, personal care and home care revenue accounted for 25%, 70% and 5%, respectively.

Thanks to the price increase of 17.

8%, beauty skin care revenue increased in ten years.

0%, home care broke out, and revenue increased by 65 per year.


3) Channel side: Traditional channels are under pressure, and e-commerce channels and special channels maintain growth.

Affected by international big-name competition, traditional offline channels are under pressure, especially the double value shift of department stores; e-commerce and special channels have performed well. The e-commerce GMV has increased by 31%, and the special channel recovery has exceeded 60% +.

The company’s multi-brand operations are actively adjusted, brand development is differentiated, and some brands are still being adjusted. The net profit of the extended acquisition of Infant Tang Meixing has grown rapidly.

The short-term capacity maximization of the Qingpu new plant is still under pressure. The gross profit margin is under pressure, and the expense rate control is maintained. Considering the increase in disposable income from disposal of assets in 19H1, we raise the profit forecast for 19 years.



10,000 yuan (previous forecast was 5.



1 ‰), corresponding to PE is 37/34/31 times, maintaining the level of 南宁桑拿 overweight.