Eastern Fortune Network >data center >Research report >Shanghai Jahwa > Shanghai Jahwa - Research Report
  • Latest price -
  • Ups and downs -
  • Quote change -
  • Change hands -
  • Total hand -
  • Amount -

2018 Annual Review: Steady growth in revenue and good profitability

Westdollar.com March 14, 2019 00:00 Oriental Fortune Securities Chen Bo View original PDF

Shanghai Jahwa (600315)

[Investment Highlights]

Shanghai Jahwa released its 2018 annual report. During the reporting period, the company achieved operating income of 7.138 billion yuan, an increase of 10.01%; net profit attributable to shareholders of listed companies was 540 million yuan, an increase of 38.63%. The company's 2018Q4 realized operating income of 1.718 billion yuan, an increase of 11.66% year-on-year; realized net profit attributable to shareholders of listed companies of 0.87 billion yuan, an increase of 42.15%.

The personal care sector led the growth in revenue, with the highest growth in sales of home care products. The company's products are mainly divided into three categories: "beauty skin care", "personal care" and "home care". Among them, the home care products based on the "Jia'an" brand account for a small proportion of revenue, only about 3.3%, but In 2018, revenue increased the most, reaching 41.18%. The personal care products, which accounted for 63.7% of the revenue, mainly include “Six Gods” and “Tangmeixing” brands, with a year-on-year increase of around 12%. As one of the company's main brands, “Six Gods” vigorously promoted the rejuvenation strategy in 2018, and its reputation and market share increased further. It is in an absolute leading position in the toilet water category, with a market share of 74.8%, an increase of 0.2 percentage points year-on-year. Among the shower gels and soaps, “Six Gods” are also the domestic brands with the highest market share. “Tangmeixing” is the newly acquired baby feeding brand of the company in 2017. In 2018, the company’s baby skin care product “Qi Chu” has achieved rapid growth in mutual drainage in the mother-infant channel. The revenue increased by about 13% and the net profit turned over. Doubled, significantly exceeding the performance commitments at the time of the acquisition. The main brand “Herbs Collection” in the company's “Beauty and Skin Care” section was affected by the channel adjustment in the second quarter, and the growth rate was relatively slow.

The gross profit margin declined slightly, but the expense ratio decreased more during the period and the net interest rate increased. The decline in gross profit margin was due to the increase in raw material costs during the reporting period and the adjustment of the sales structure of the company's products. The company's beauty and skin care products have the highest gross profit margin, above 70%, and the gross profit margin of personal care and home care is relatively low. However, due to the increase in revenue, the overall gross profit margin declined slightly, compared with 2.11 in the same period of last year. percentage point. In terms of three fees, the company's overall fee control is good, and the marketing expenses, which accounted for the highest proportion of sales expenses, only increased by 3%, which also indicates that the company's marketing efficiency has improved. The higher proportion of administrative expenses, such as wages and benefits, increased by 2%, and office expenses decreased by 12%, reflecting the improvement in human efficiency. The financial expense ratio has increased. On the one hand, due to the acquisition of Cayman A2, the bank deposits have decreased, and the interest income has decreased. On the one hand, Cayman A2 has increased the interest expenses due to the new loans. The overall three rates have decreased by 2.51 percentage points and the net interest rate has increased by 1.56. percentage point.

The company adheres to the 16-character management policy and has made progress in research and development and channel supply. The company steadily promotes the 16-word management policy of “R&D first, brand-driven, channel innovation, and supply guarantee”. In research and development, the company launched 39 research projects in 2018, and 52 research patents have been applied for technology. The total R&D expenses increased by 4.1%. %. In terms of channels, the company continued to promote the omni-channel sales model, and the proportion of online sales further increased to 22.5%. On the supply side, the company's new plant construction and production, the new factory's production capacity and intelligent manufacturing level compared to the old factory has a substantial increase, laying a solid foundation for the company's production efficiency and product line.

【Investment Advice】

In terms of revenue, the company's “Six Gods” and “Mega” brands are in a strong leadership position in the fields of toilet water and hand cream. In the future, by continuing to rejuvenate marketing, revenue is expected to increase steadily, and the brand “Yuze” and “ At the beginning of the year, we will meet the needs of segmentation and further establish brand awareness through word-of-mouth marketing, which is expected to maintain a high growth rate. Herborist and Tang Meixing are in line with the trend of high-end, through the single-brand store optimization service, through the mother-infant channel to drain each other, there is also a lot of imagination in the future. In terms of profit, the new plant can not only improve production efficiency, reduce costs, but also improve the digitization and informationization of operation management, and save related manpower and operating expenses.

It is estimated that the company's 18/19/20 revenue will be 80.35/89.89/99.81 billion yuan, and the net profit of returning to the mother will be 6.81/7.74/869 million yuan, EPS1.01/1.15/1.30 yuan, corresponding to PE31.96/28.13/25.03 times. Give an "overweight" rating.

  • Quotes
  • Cash flow
  • Core data
  • Time sharing
  • Day K
  • Week K
  • Month K
Shanghai Jahwa Fundamental Data
  • Total share capital of 617 million shares
  • 6.7 million shares outstanding
  • Earnings per share 0.81 yuan
  • Undistributed profit per share 5.65 yuan
  • Net assets per share of 8.66 yuan
  • Return on equity 9.68%
  • Net profit of 54.38 million
  • Net profit growth rate 38.63%
Shanghai Jahwa Investment Rating
Overall rating within one month
Overall rating in March
Statistical period Buy Overweight neutral Reduction Sell total
Within one month71000017
Within three months71000017
Within six months81100019
Within a year141330030
Shanghai Jahwa Profit Forecast
                                index 2017A 2018E 2019E 2020E
Earnings per share (yuan) 0.58 0.81 0.98 1.20
Net profit (100 million yuan) 3.90 5.40 6.57 8.08
name Quote change Number of research reports Institutional investment rating (nearly six months)
Buy Overweight neutral Reduction Sell
Taihua 10.07% 0 0 0 0 0 0
Hengyi Petrochemical 10.01% 19 9 10 0 0 0
Tianke shares 10.01% 0 0 0 0 0 0
Danhua Technology 5.58% 0 0 0 0 0 0
Shandong Heda 5.53% 9 7 2 0 0 0
Lianhua Technology 5.32% 2 0 2 0 0 0
Kailong shares 5.31% 0 0 0 0 0 0
Hesheng Silicon Industry 5.15% 9 5 4 0 0 0
ST Nanhua 5.01% 0 0 0 0 0 0
*ST South Wind 4.98% 0 0 0 0 0 0
Midland New Materials 4.85% 0 0 0 0 0 0
Polaia 4.85% 15 12 3 0 0 0
Yayun shares 4.80% 0 0 0 0 0 0
Jiangsu Thorpe 4.70% 1 0 1 0 0 0
Jiahua Energy 4.46% 6 4 2 0 0 0
            The organization consistently looks at multiple stocks
name Research report See multiple numbers highest
                        Target price
lowest
                        Target price
Current price
Shennan circuitdetailed44121.0363.51119.10
China National Travel Servicedetailed4186.8849.5662.14
Ningde eradetailed3691.4662.7888.81
Yilidetailed3626.0421.0027.95
SAICdetailed3432.9723.2425.93
Dangsheng Technologydetailed3231.5021.4330.42
North Huachuangdetailed3072.2237.6367.60
Guizhou Maotaidetailed29777.13549.30795.55
CITIC Securitiesdetailed2824.6215.9623.80
Satellite petrochemicaldetailed2713.559.6814.07
Stout fooddetailed2742.9232.7645.96
Zhongju High-techdetailed2630.9822.0432.45
Songcheng Performing Artsdetailed2628.9219.3621.81
Wuliangyedetailedtwenty four79.0448.3084.48
Yonghui Supermarketdetailedtwenty three8.457.018.48

Data Sources:Eastern Fortune Choice Data