Shanghai Jahwa (600315): Herborist significantly recovers profits than expected

Shanghai Jahwa (600315): Herborist significantly recovers profits than expected

The significant recovery of Herborist in Q2淡水桑拿网 2019 led to an increase in the company’s revenue and profit growth. In the second half of the year, Herborist continued to highlight bright spots, and the six gods gradually recovered. Revenue and non-profit growth were pushed to another level.

Investment points: Investment advice: 2019Q2 Herborist significantly improved, driving company revenue and profit growth rebounded.

New marketing in the second half of the year, new product highlights continued, revenue, non-profit growth rate tried to climb to the next level.

The company’s initial recovery trend is clear, the current estimate is still at the bottom of history, and the EPS for 2019-2021 is maintained at 0.



54 yuan with a target price of 43.

65 yuan, increase the level.

Q2 revenue and profit growth both rose.

The company’s H1 revenue in 2019 was 39.

23 ppm, a ten-year increase of 7.

02%, net profit attributable to mother 4.

44 ‰, an increase of 40% in ten years, net of non-net profit2.

61 ppm, an increase of 9 in ten years.

52%, slightly exceeding market expectations.

The revenue growth rate of Q2 companies alone was 9.

1% (Q1 is 5%), deducting non-net profit growth rate of 14.

4% (Q1 is 6.

7%), both significantly improved.

Q2 The relocation of major chemical biomedical subsidiaries, supplementary confirmation1.

The 400 million non-recurring income caused the growth rate of net profit attributable to mothers to increase.

Q2 Herborist’s strong recovery, the highlights of the second half of the year are more worth looking forward to.

In terms of categories, the company’s Q2 beauty and skin care products grew at a rate of 12%, and Herborist’s growth rate is more than 10%, which is a significant boost compared to Q1.

The recovery of Herborist Q2 is the multiple resonances of new positioning + new product explosions + new marketing channels in 2019. Behind it is the gradual rationalization of the operation and management ideas of Jahwa.

At the end of August, new products such as the essence of 厦门夜网the Herborist Tai Chi series (new categories) will be launched one after another. More highlights are worth looking forward to.

With many years of planning adjustments, the logic of upwards in the medium term has been continuously clarified.

Since the company launched fair incentives in 2018, its own brands have actively adjusted and combined with the positive changes in Herborist in 2019, it is expected to perform better in the second half of the year, and the net profit assessment conditions have reached expectations. The logic of progressive improvement is continuously being verified.

Risk warning: improper cost control, intensified competition in the industry, and slowed economic growth.