Pollya (603605) 2019 Third Quarterly Report Review: Q3 Online Explosive Products Drive High Growth Performance in Accordance with Expectations

Pollya (603605) 2019 Third Quarterly Report Review: Q3 Online Explosive Products Drive High Growth Performance in Accordance with Expectations

Q3 revenue accelerated, and the results met expectations in the first three quarters of revenue 20.

80,000 yuan, an increase of 33.

4%, performance 2.

4 trillion, the same increase of 32.

0%, basically in line with 31 of our performance outlook.

5% growth rate is expected.

Among them, Q3 revenue accelerated at 45% under a successful explosive strategy.

2%, performance is affected by the increase in short-term promotional efforts 26.


E-commerce channels maintain high-speed growth, and offline growth is relatively relatively discrete. From the perspective of the company, e-commerce growth in the first three quarters is expected to increase by 60%, accounting for 50%. It is expected that the main brand Q3 explosive products will be driven by the bubble mask andThe rapid growth in the volume of emerging brands is driven by the company’s offline channels. The company expects high single-digit growth. The pressure of the offline retail environment is relatively stable. Single-brand stores are expected to remain flat, mainly due to continuous adjustments after extensive expansion last year.

In terms of products, the company’s make-up products are currently expected to account for nearly 4%, and the 5% share target is still expected to be gradually achieved under the double 11’s large-scale layout. As a result, the company’s cross-border purchase business in the second half of the year is expected to further increase the volume.

In Q3, the gross profit margin declined due to the product structure. Operating cash flow is positive. From the perspective of profitability, the company’s gross profit margin increased by 0.

7pct, mainly due to the increase in the proportion of e-commerce channels with high gross profit, but Q3 fell by 4 in a single quarter.

7pct, which is expected to increase due to the increase in the proportion of mask products in the main categories with reduced gross profit margins and cross-border purchases; the company’s sales expense ratio increased by 0.

58pct, the main reason is that the company has increased advertising and promotion, and the management expense ratio has increased by 0.

31pct is mainly due to the increase in the company’s employee compensation and equity amortization expenses.

In terms of operating 苏州桑拿网 conditions, the company’s inventory turnover days decreased by 11.

9 days to 92.

Two days, the performance continued to be excellent, and the number of days of receivable turnover increased slightly by 5.

0 days.

Operating cash flow was 72.65 million, which turned from negative to positive as scheduled (mostly due to quarterly tax adjustments and increased purchases of new raw materials).

The ability to build explosives has continued to be verified, and the endogenous and external modelling of the beauty leader has maintained the “buy” outlook. As the most successful local beauty company that operates the e-commerce channel independently, the company will use e-commerce big data and continue to focus on positioningThe customer base creates new products, realizes the inheritance and growth of the category, and leverages new media and head KOLs to dig around selling points around product characteristics and seize the new dividends of social e-commerce.

At the same time, the multi-brand layout continues to deepen.

In the future, the company intends to continue to introduce partnership enterprises. First, the layout and main brand differentiation positioning and category supplementary targets. Next year, it plans to make up 10% of makeup. Second, the layout is a new content marketing company that empowers brand development. The extension is expected to continue to strengthen.

We maintain the company’s EPS1 for 19-21.



35 yuan, corresponding to PE45 / 33/27 times, maintain “Buy” rating.

Risk reminder: E-commerce growth is not up to expectations, and multi-brand extensions are not up to expectations