Pollya (603605) 2018 performance review: 60% increase in online channels, efficiency improvement, profit margin improvement

Pollya (603605) 2018 performance review: 60% increase in online channels, efficiency improvement, profit margin improvement

Praia Announces 2018 Annual Report: Realizing Revenue23.

610,000 yuan, +32.

43%, realizing attributable net profit2.

870,000 yuan, +43.


Among them, Q4 single-quarter revenue of 8.

01 billion, +40.

6%, attributable net profit 1.

50,000 yuan, +40.


Online channels achieved high growth of 60% and revenue accounted for 44%.

In 2018, the company formulated precise strategies based on the characteristics of various e-commerce platforms, refined operations, and achieved revenue in direct-operating channels such as Tmall4.

70,000 yuan, +90.

2%, through the distribution method in Jingdong, Vipshop and Yunji and other platforms to achieve revenue5.

600 million, +41.


Revenue from offline channels grows by 16 per year.

9%, of which daily chemical store revenue was 10 billion, +7.

5%, Supermarket channel revenue of 200 million, +24.

7%; revenue from single-brand stores1.


The main brand Po Laiya achieved a 32% growth, and the Youzilai brand grew rapidly in a single-brand store model.

In 2018, the company’s main brand Po Laiya launched five new product series such as the marine ampoule repair series, and increased brand awareness in various ways, achieving revenue of 20 in 2018.

9 billion, +32.

4%, revenue accounted for 89%.

The Uzilai brand is targeted at the lower-tier city customer base, mainly 杭州夜生活网 through the expansion of the single-brand store model. In 2018, it launched 300 new SKU products, covering skin care, makeup, and health, to achieve revenue1.

3.3 billion, +41.


Revenue from other brands1.

32 billion, +24.


Increasing marketing expenses, increasing sales rates, improving human efficiency, reducing management fees, and improving profit margins.

In 2018, the company expanded its marketing investment and increased its sales rate by 1%.

9 pct to 37.

5%, mainly to increase the growth of marketing promotion (image promotion promotion rate increased by 1.

2 pct to 21.

2%). In addition, the rapid increase of online business has also increased the company’s logistics costs, and the freight rate has increased by 0.

6 pct.Management fee rate + R & D fee rate decreases by 1 each year.

4 pct to 9北京夜生活网.

4%, the company gradually strengthened the platform management, and the staff rate decreased by 1 every year.

3 pct (excluding fair incentive costs).

The company’s overall expense ratio in 2018 dropped by 1.

0 pct, attributable net interest rate increased by 0.

9 pct to 12.


Investment ratings and estimates The company’s product positioning is popular, and its channels penetrate into low-tier cities, and it will enjoy the dividends of consumption upgrades for a long time. Online channels are the company ‘s expanding focus, and its online operation capabilities and experience are constantly improving. We expect onlineBusiness will maintain a high growth rate.

What do we expect the company 2019?
Revenue will reach 30 in 2021.



800 million, net profit 3.



1 ppm, corresponding to PE estimated 34/26/21 times, the first coverage, given a “recommended” rating.

Risk prompts company’s marketing promotion effect falls short of expectations, online channel revenue increases