Marubeni (603983) New Share Pricing Report: High-end mid-to-high-end eye care leading-edge, refined trends and priority growth

Marubeni (603983) New Share Pricing Report: High-end mid-to-high-end eye care leading-edge, refined trends and priority growth

Company profile: The mid-to-high-end eye care leader is a mid-to-high-end premium skin care brand with an income of 15 at the age of 18.

7.6 billion, market share of skin care products1.

1%, ranking 21st overall and 10th among local companies.

The three brands Marumei (medium-to-high-end skincare), Chunji (mass skincare), and Lianhuo (mass cosmetics), of which the main brand medicine beauty are local eye care leaders, with 89% of revenue in 18 years, eye care incomeAccounting for 34%.

Independent research and development production, the channel is mainly distribution (18% in 18 years), the form of CS stores and e-commerce accounted for 42%, 40%, of which CS stores are mainly located in third-tier cities and below.

Industry analysis: In the growth stage, it has become high-end in recent years, and the trend of refinement has existed since 00. The cosmetic industry has been replacing the fourth-tier and below cities with consumption upgrades entering the growth. The industry space in 2018 is 4102 trillion.
In the industry for 18 years, the average annual compound growth rate of skin care products and cosmetics market is 8%, 9%, and 16%. Skin care products and cosmetics have a higher prosperity.

Extreme high-end, refined (water cream cream upgrade to eye cream, essence and other advanced skin care) trend is emerging.

International brands dominate, with strong performances in the high-end, make-up, hair care and bathing fields. Local brands have grasped the industry’s growth channels to break the dividends and continue to improve in the field of mass skin care products.

The industry is changing rapidly, short-term competition is dominated by marketing and channels, long-term return to product power, high-end brand star products have strong vitality, large revenue contribution, and the manifestation is more obvious.

The rest of the industry 3?
6 times the space, multiple brands / categories help to grasp new changes, reduce performance changes, and have room to grow.

Company analysis: Marketing and distribution are rich in resources and have first-mover advantages in eye care. It is expected to become a new trend in the industry. Financial analysis and industry comparison: bonus for related industry development, 11?
18-year compound annual growth rate of revenue / net profit was 14%.

The change of channel caused the change of performance. In the early stage, it changed to the rapid development of CS store dividends. In recent years, the change in performance has led to the increase in e-commerce volume in 17 years. Growth in sales caused a decline in gross profit margin, a decrease in marketing optimization expenses, and an increase in inventory turnover.

Compared with its peers, the company’s scale has further room for improvement, with its growth centered, profitability, and operations indicators superior.

Competitive advantages: 1) The main brand was established in 2000, focusing on mid-to-high-end eye care, and has grown into a leader in niche areas, with first-mover advantage.

2) Each David sees abundant marketing resources (currently arranging online video ads to welcome the new trend), and cooperates with online and offline head dealers to promote the same industry performance.

3) Focus on eye care, date overseas high-quality R & D resources, expand high-end series, and hope to change the industry’s refinement and high-end trend first.

Investment suggestion: The company is a local mid-to-high-end eye care leader, with a first-mover advantage in segmented fields; rich marketing and distribution resources, strong short-term competition, dating overseas resources in recent years, and strengthening long-term competition; focusing on eye skin care, and expanding high-end priority industriesHigh-end, refined trend.

Expected 19?
The 21-year EPS is 1.



59 yuan, with reference to the peer assessment and taking into account the company’s high positioning, given a certain estimated premium, it is recommended to give 30?
35 times the estimate, the reasonable price range is 35.


65 yuan / share.

Risk warning: weak retail; dealers do not renew; new trends are not grasped in time; new marketing / channel resource cultivation is less than expected; marketing 淡水桑拿网 brings less than expected results.