Shanghai Jahwa (600315) 2018 Annual Report Commentary: Q4 bucks the trend for the better 2019 Herborist aims to adjust its output

Shanghai Jahwa (600315) 2018 Annual Report Commentary: Q4 bucks the trend for the better 2019 Herborist aims to adjust its output

This report reads: The company’s 2018Q4 revenue increased against the trend, smoothed out through e-commerce channels, and the adjustment of the Herborist brand. In 2019, the company is committed to maintaining double-digit revenue growth and continuous improvement in operating quality.

Investment points: Investment advice: The company’s Q4 will achieve 12% revenue growth against the trend. It is expected to continue to maintain double-digit revenue growth in 2019. It is worth looking forward to expanding the brand matrix in multiple ways.

Considering the increase in the consumption and operating costs of the new plant and the reduction of government subsidies, the company’s EPS for 2019-2020 is reduced to 0.

96 (-0.

16) / 1.

23 (-0.

28) yuan, 四川耍耍網 the company’s EPS is expected to be 1 in 2021.

54 yuan, considering the continued high growth in revenue, given a PS estimate of 3 in 2019.

6 times, maintain target price of 44 yuan, increase the level of holdings.

Benefiting from the high growth of e-commerce, Q4 revenue bucked the upward trend.

The company initially achieved revenue of 71 in 2018.

400 million US dollars, an annual increase of 10%, net profit attributed to mother 5.

40,000 yuan, an increase of 38 in ten years.

63%, EPS0.

81 yuan, in line with market expectations.

Single-quarter revenue increased by 12%, mainly benefiting from the high growth of e-commerce channels (the growth rate of the entire network on Double Eleven exceeded 40%).

The company deducts non-net profit 4.

57 trillion, an increase of 37 in ten years.

8%. In 2018, the Qingpu factory was relocated, and government subsidies increased by more than 10 years.

100 million, but the non-recurring income offset by other items is only 0 more each year.

2.5 billion, the overall operating quality is steadily improving.

In terms of brand, Tang Meixing performed well in 2018 with a revenue of 16.

300 million, a year-on-year increase of 13%, and a net profit of 0.

7.5 billion, a 103% increase in ten years.

It is expected that the number of Liushen will increase by two, and the number of U.S. and Canadian net highs will increase. Under the influence of Herborist, online distributors, etc., it is expected that the revenue in 2018 will be slightly negative, but in 2019, the direction of Zhungufang + technology empowerment has been found, and revenue is expected to resume growth.

In 2019, we will see the new products of Herborist. The agency + M & A extension is worth looking forward to.

The company’s operating goal for 2019 is still to achieve double-digit revenue growth. After the Herborist brand and channels have been rationalized, it strives for new growth points.

In addition, the company began to sell CHD baking soda products successively in the second half of 2018, and gradually continued to expand the new brand matrix through agency + mergers and acquisitions.

Risk reminder: improper cost control, intensified industry competition, and economic growth decline