The company is an "Internet+Cosmetics" company with a focus on e-commerce channels and the core brand of Yu Niu Square.
1) Autonomously hatching two years of sales revenue of over 100 million brand, with the "Yumianfang" in the mask field as the core, and at the same time owning such major brands as "Little confused," "Hua Yaohua," "Master Yi," and "Wei Feng." Products include facial masks, water cream creams, etc., of which mask-based.
2) With the power of e-commerce channels, the scale has grown rapidly. The company's operating income rose by 56.2% year-on-year in 2014-2017 and its net profit compounded by 62.2%. 2017 achieved sales revenue of 1.65 billion yuan. 3) It is favored by quality capital and demonstrates its future potential. The company A won deep venture capital, B won Sun Capital Investment, and Lei Jun served as the company's director. The current controller of the company is Dai Yuefeng, who directly holds 12.6% of the company's shares and indirectly controls 45.9% of the company's shares.
The prosperity of the cosmetics market is good, and local mask brands usher in warm spring. 1) Mask is the highest growth rate of skin care products, skin care products is the largest share of the cosmetics industry, and the mask segment market shows rapid growth. In 2016, the market for skin care products in China was 169.3 billion yuan, and the skin care market CAGR reached 8% in 2011-2016, which is higher than the overall growth rate of the cosmetics industry. In 2016, the mask market capacity in China was 18.1 billion yuan, and the CAGR of the mask market in 2011-2016 was 15.5%, which was higher than the overall growth rate of skin care products. The film market mainly consists of patch-type masks. Consumers' demand for facial masks focuses on moisturizing. 2) The domestic mask brand ushered in the warm spring in 16 years, and accounted for about 70% of the mask category sales on the line, and the Korean mask brand seized a certain market share. Domestic brands rank first in terms of leaves, with the market occupying 7.1% of the online market in 16 years. Domestic Amoy Membrane and Royal Edam have a strong top 5 position, accounting for 6.8% and 5.4% of the market respectively. The share of Yujiahui in the Chinese skin care market has been increasing year by year, from 0.1% in 2011 to 1.0% in 2016. Korean Masks headed by Clairis took over the Chinese market, and the Meditec and Lithia brands ranked among the top ten.
Taking “Yu-Dian Square” as the fist product, accounting for nearly 70%, it has gradually expanded other brand categories. 1) Brand side: The main brand, Royal Square, has been well-developed and the Royal Mudfang brand's operating revenue of RMB 1.15 billion has been maintained. Other brands include four sub-brands: "Little confused," "Hua Yaohua," "Master Yi," and "Wei Feng," which are used to cut into youth and men's skin care markets. 2) Channel end: Relying on the rapid rise of e-commerce, the Internet gene assists new brands in overtaking. The company has established stable cooperative relations with major e-commerce platforms such as Tmall, Taobao, Vipshop, Jingdong, and Jumei Youpin. In 2017, the online income reached 1.57 billion yuan, accounting for 96%, and the advantages of e-commerce were obvious. 3) New media marketing is known: The company's brand promotion focuses on new media marketing that focuses on low-cost drainage, such as the integration of TV dramas and variety shows, film posters, themed events, and animation and IP cooperation. 4) Production R&D: The company mainly focuses on commissioned processing, the proportion of independent production gradually increases, and the R&D expenditure increases rapidly. In 2017, the commissioned processing production accounted for 85.5% of the total cost and the R&D expenditure rate was 2.3%.
The company plans to issue 40 million shares this time, with a net fund raising of 860 million yuan, for the R&D and quality management testing center construction projects (110 million yuan), information and mobile internet mall upgrade projects (85.4 million yuan), and brand building. With promotion projects (470 million yuan) and supplementary working capital (200 million yuan).
The company is a well-known Internet mask company that has rapidly emerged in recent years in China. The online platform of the “YuMeifang” brand has risen rapidly. The market share is expected to gradually expand. The potential for multi-brand incubator growth is sufficient. For the first time, it will be given an overweight rating. In the future, the company will strengthen its channel layout online and use e-commerce operation expertise on line, which is expected to maintain its high growth potential. It is expected that net profit attributable to mothers in 2018-2020 will be 2.35/3.57/4.89 billion yuan respectively, corresponding to PEs being 14/10/7 respectively. Times, give overweight rating.
