Po Laiya (603605) 2019 first quarter report review: channel optimization drives high growth performance basically in line with expectations

Po Laiya (603605) 2019 first quarter report review: channel optimization drives high growth performance basically in line with expectations

This report reads: Channels and brand structure continue to optimize, and performance maintains rapid growth.

The first quarter was the off-season for e-commerce and the revenue growth of Uzaire franchise stores restarted. There were some growth rates through Uzela to accelerate the exhibition, and the revenue growth accelerated.

Investment points: Investment advice: Channel and brand structure continue to be optimized, and performance maintains rapid growth.

Maintain EPS 1 for 2019-2021.



12 yuan, maintaining a target price of 75.

6 yuan, overweight.

Revenue and profit maintained high growth, and performance basically met expectations.

2019Q1 company revenue / net profit6.


910,000 yuan, an increase of 27 in ten years.

63% (+16.

7pct) / 30.

36% (+0.

8pct), net non-profit increased by 35 per year.


The optimization of channel and product structure promoted the improvement of gross profit margin.

73pct to 63.

83%, rapid revenue growth, channel structure optimization and platform management to promote sales expense ratio / management expense ratio -0 per year.

51pct / -1.

72pct, financial expense rate -0 per second.

81pct, net interest rate increased by 0.

3 points to 14.


Operating cash flow decreased by 1.

900 million is expected to be mainly affected by the delay in payment of taxes, current payment of building works and year-end awards.

Maintaining high growth online, Youzilai is expected to accelerate offline growth.

The company’s online revenue increased by 59 in 2018.

9%, accounting for 43.

6%; offline revenue increased by 16.

9%, accounting for 56.


According to statistics from Taobao and other statistics, we expect that online revenue in Q1 2019 will still maintain a high growth of about 50%, and overall offline revenue will increase by about 10%.

Online is basically in line with the average growth target. Since Q1 Spring Festival, the growth rate of Youzilai Exhibition Stores has been slightly lower. In 2019, you will have 500-1000 Youzilai exhibition stores.The growth rate is expected to gradually pick up.

The products are continuously upgraded, and the internal and external extensions are synchronized.

The company established a joint laboratory with the French Marine Development Institute and the French National Seaweed Research Institute to develop 失败:重查 new products.

The company develops cross-border purchasing business through a partnership system, and joins hands with South Korean cutting-edge beauty brand YNM, Japanese high-end cosmetics brand I-KAMI, and shares in professional e-commerce content producers to promote new performance growth points. Risk warning: industry competition intensifies; new product promotion costs increase more than expected.