Proya: 7 Perfect Diary for market value

Proya's script: star fund repositioning, stock price up, five years doubled ten times, the market value of more than 40 billion, double 11 this year, Proya nearly for the first time in the Tmall beauty top ten, customer unit price more than L'Oreal, OLAY.

Founder Hou Juncheng and Fang Yuyou, as agents of Dabao, Dingjiayi, etc., have many CS channel resources. In 2007, the Perrier distribution network had more than 20,000.

-The importance and sensitivity of the channel are engraved in the gene. 2009 e-commerce initially began to lay out online. 2017 after the listing to step up efforts live, a traffic bonus did not miss.

-2019 online revenue exceeds offline. As of the first half of 2022, 88% of revenue is from online.

From essential moisturizers and lotions to more profitable anti-aging essence.

Turning point: great single explosive products. In 2020 in line with the "composition party," "early C late A" launched a single sizeable product, ruby essence, double anti-essence, a year sold more than 900 million, driving the unit price directly doubled.

To respond to the changing market environment, and to open up new markets and consumer groups, to create a multi-brand matrix.

Through the partner system, the company incubated the beauty brand "Caitang," the affordable brand "Yuefti" for small-town youth, and "Core Skin," which specializes in functional skin care.

Since its IPO in 2017, the five-year share price has increased nearly ten times, with revenue of 3.962 billion yuan in the first three quarters of 2022, up 31.53% year-on-year; net profit of 495 million yuan, up 35.96% year-on-year.

Growth rate: from 2017 to 2021, the average annual compound growth rate of 27% and 30% on revenue and net profit attributable to the mother

Profitability: strength in online channels, little impact from the epidemic, gross sales margin rose from 59.9% to 69.43% in Q3 2022 after mid-2020

Risk under high in-volume competition

In addition to traffic competition from national brands, big international brands have made efforts in online channels, with L'Oreal's online revenue share rising from 3.5% in 2014 to 28.9% in 2021. Last year, solid international brands occupied 80% of the premium pitches in the online live channel.

Fierce competition and the inherent disadvantage of comparing international brand power, the cost of sales has increased yearly since 2019, and the price-of-sales ratio reached 42.53% in the first half of 2022. The growth rate is higher than the growth rate of revenue.

- "Early C and late A," hyaluronic acid, sensitive skin field crowded with new players, the differentiation dividend is no longer there.

-Stable R&D expenses of more than 70 million after 2019, but minor compared to L'Oreal's 7 billion a year.

-A year of R & D rate of about 2%, compared with Huaxi biological, Bethenny 4-5% or so, there is still a big gap.

It is the best strategy to be king in the market segment at this stage.