Pollya (603605) Third Quarterly Report Review: Revenue Growth Momentum and Steady Growth

Brief description of results: 2019Q1-3, Polaia achieved revenue of 20.

80 ppm / +33.

35%, net profit attributable to mother 2.

4 billion / + 32.

04%, deducted non-net profit 2 by the mother.

3.8 billion / + 41.

50%, basic EPS is 1.

20 / + 31.

87%, net operating cash flow was 72.65 million yuan / -61.


Single-quarter revenue in Q3 20197.

52 ppm / +45.

15%, net profit attributable to mother 0.

6.7 billion / + 26.

07%, deducted non-net profit of 0.

6.7 billion / + 47.


Explosive models led to a quarter-on-quarter increase in revenue growth and maintained rapid growth online.

In Q1, 2019, Poreal achieved revenue of 20.

80 ppm / +33.

35%, Q3 single quarter income 7.

52 ppm / +45.

15%, the growth rate increased significantly.

Mainly the company’s marketing methods have been comprehensively upgraded to promote the continuous high growth of online sales: The “Black Sea Salt High Purity Bubble SPA Mask” released by 618 in 2019 at Polaia has been widely “planted on grass” and other content platforms.In July 2019, the flagship store of Po Laiya Black Sea Salt Bubble Cleansing Mask was sold for about 900,000 units, with an average transaction price of 79 yuan, contributing about 71.1 million yuan, and the first place in sales of Tmall mask products in July.

According to Amoy data, since July, Po Laiya Taobao’s cyclical network has significantly improved, and continued to grow at a high level.

Under the efficient marketing, the expense ratio is well controlled and the profitability remains stable.

2019Q1-3, gross profit margin increased by 0.

71pct to 63.

85%, 2019Q3 single quarter gross margin decreased by 4.

62 points to 60.


Mainly: ① In the first three quarters, the proportion of online channels with higher gross profit margins continued to increase, the proportion of high-margin products such as water essences rose, and the unit price of products continued to increase; ② the third quarter of 2019″Bubble mask” has a relatively high proportion of carbon dioxide, which lowers the overall gross profit level.

Under the efficient marketing, the expense ratio is well controlled, and the profitability remains stable. 2019Q1-3: ① The sales expense ratio increased slightly by 0.

58pct to 39.

43%, during the actual social marketing promotion period, the company’s expense rate remained basically stable, fully reflecting the company’s core competence in precision marketing promotion; ② the management expense rate rose slightly to 0.

31 points to 6.

84%, mainly due to amortization of fair incentive costs; ③ Overall, the company’s cost control under efficient marketing is well controlled and profitability remains stable.

Looking at the single quarter of 2019Q3, the overall expense ratio during the period decreased by 3.66pct, of which the selling expense ratio decreased by 1.

83pct to 39.

48%, the management expense rate also decreased by 0.

54 points to 7.

04%, the financial expense ratio also decreased by 0.

92pct to -0.

51%, the research and development expense rate also decreased by 0.

38pct to 2.


The inventory turnover rate remained stable, and the operating cash flow was affected by the incident, resulting in a decline.

The increase in the inventory turnover rate, the main purchase of goods by subjects with changes in operating cash flows, the increase in cash received for labor services, and 杭州夜网论坛 the increase in taxes and fees.

The increase in account receivable turnover days was mainly due to the increase in receivables caused by mid-year promotional activities of various online platforms.

Qi Gao Zeng, online and offline, continued to upgrade marketing methods, accelerated expansion of categories.

① The online market continued to increase rapidly for the first half of the year, and in 2019Q3, a substantial increase was gradually achieved driven by the explosion of the “bubble mask”.

② The marketing method has been continuously upgraded. In 19 years, it passed the cross-border marketing such as Shan Hai Jing and National Geographic. It was named Zhejiang Satellite TV, “It’s Good to Meet You.”Joint marketing.

③ 2019H1 make-up has achieved 200% + growth. Through the company’s partnership mechanism + cross-border generational operation model, the brand and category boundaries have been continuously expanded, and the product matrix has been transformed to enhance its strong staying power.

Investment recommendation: Buy-A investment rating, 6-month target price of 104.

06 yuan.

We expect the company’s net profit to be 3 in 2019-2021.



110,000 yuan, the corresponding growth rate is 36% / 34% / 36%, which is higher than the industry level, giving an estimate higher than the industry level: 6-month target price is 104.

06 yuan, corresponding to 45xPE in 2020.

Risk Warning: Online channel growth forecast, offline competition continues to deteriorate, new product promotion is less than expected, and macroeconomic growth continues