Qingdao jin wang: cosmetics industry layout began in earnest

In the first three quarters, the company's revenue of 941 million, fell 13.43% year on year; Belonging to shareholders of listed companies net profit 47.51 million, up 1.54% from a year earlier. Traditional business downturn, but the cosmetics business investment returns in line with expectations. Being offline channels rely on Shanghai month, online channels rely on hangzhou can leisurely, while guangzhou house party is expected to output excellent brand for the company, like cosmetic industry layout. Considering the company's traditional business low expectations, lower corporate earnings expectations, is expected to 14 to 15 years in EPS were 0.19 yuan, 0.26 yuan and 0.26 yuan, the current share price corresponding PE 72 times respectively, 53 times and 36 times, maintain the "recommended" rating.
Event: the company issued three quarterly reports, in the first three quarters of revenue of 941 million, fell 13.43% year on year; Belonging to shareholders of listed companies net profit 47.51 million, up 1.54% from a year earlier. At the same time the year attributable to shareholders of listed companies is expected to net profit of 46.07 million to 62.34 million, rose to 15.00% - 15.00%.
Traditional business downturn, cosmetics business investment returns in line with expectations: new materials the candle business, the company mainly exports, 14 years by market competition, coupled with the yuan against the dollar exchange rate fluctuations, in the export aspect under certain influence. And oil trade business, affected by market factors, the income scale. In the first three quarters of 941 million, fell 13.43%. From the gross profit margin, in the first three quarters of gross margin was 15.01%, the basic flat with the same period of last year, on the traditional business the profitability of the company is still robust. Look from investment income data, in the first three quarters of investment income was $7.28 million, mainly from guangzhou and hangzhou's investment gains. And from a half annals, investment income is only 2.07 million, single quarter, investment gains can be in the third quarter of 5.21 million, guangzhou building profitable seasonal is not obvious, and hangzhou's profitability strong seasonal leisurely, mainly concentrated in the second half of the year, especially in the fourth quarter, we think the third quarter of 5.21 million investment income is in line with expectations.
Acquisition of Shanghai is being, through offline channels: on October 22, the company purchase report, announcement to buy month being 60% stake in Shanghai. Shanghai month being is a cosmetics brand marketing channel operators, mainly through the watsons, mannings personal items such as chain stores to sell a crystal, the tianjin plant show brand. Watsons, mannings channels belong to more efficient channel, compared with the department in recent years, the development of the super speed is much faster. The muscle of the crystal, the tianjin plant show sales in good condition. Shanghai month being work with Watson and mannings store number level is hundred, are more likely to achieve future of thousands. Acquisition of Shanghai on being, which is beneficial to the company quickly established channels cosmetics line, achieve complementary channels offline and online channels. The future of guangzhou party brand output can be through the Shanghai month is being completely to sales.
Online channel layout is perfect, the cosmetics business development ideas become clear: while maintaining the original main business steady development, by integrating resources advantage, to develop the field of cosmetics, mainly cosmetic.
(1) 2013 acquisition of hangzhou can be leisurely, through cosmetics online sales channel. In the future, the company will be on the basis of the existing brand brand resources integration, actively explore, including mergers and acquisitions, joint ventures, cooperation, the introduction of a variety of ways, such as to achieve the cooperation with well-known brands at home and abroad, rich brand resources.
(2) offline channels, the company integrated in Shanghai is being, building diversified channels of cosmetics. Shanghai month is being and can form good complementary leisurely, exert synergy.
(3) in addition to the channel construction, at the beginning of the company acquired 45% guangzhou house party, ODM business into cosmetics. Future development company through guangzhou house party "own brand", according to the specific situation of the brand, Shanghai month being either through into the watsons and mannings channel, through which can realize on-line channel promotion.