Shanghai Jahwa (600315): How to Renovate a Century-Old Store
On the timeline of investment points, 2015-2016 was a quiet year for Shanghai Jahwa’s operations and performance; 2017 was the first year of Shanghai Jahwa’s strategic transformation.
Under the leadership of the new chairman, the strategic transformation road opened since 201夜来香体验网 7 is expected to help the company achieve management renewal, brand renewal and channel renewal.
The company’s 2017 annual performance has returned to the growth trajectory; after the painful period, we believe that a sleeping century-old flagship is trying to set sail again with new ideas.
The evaluation ideas for this article: management renewal: a hundred years of reinvention, brand new chapters Chapter Kai brand renewal: star star backbone matrix, brand-driven channel renewal: eight channels reorganized, ready to go, management renewal “people” organization”Incentive” triple remodeling.
The company has three generations of heads. After the latest chairman Zhang Dongfang arrived at the end of 2016, he reset the sixteen-character layout of “leading research and development, brand-driven, channel innovation, and supply guarantee”, and started a bold reshaping of the organizational structure., Restart the company’s equity incentives.
Under this guidance, century-old Jahwa began to embark on a new road of rejuvenation.
Second, the brand’s new star brand continued to activate, the backbone brand was ready to take off, and the emerging brand was emerging.
The accumulated brand accumulated over a century has provided the foundation for the company to rejuvenate.
Under the brand-driven strategy, the Herborist brand is undergoing comprehensive high-end upgrades; Liushen, Meijiajing brands are actively approaching young people; Gough brand diversified marketing; Qichu, Yuze, and Jiaan brands are positioned differently.
The top ten brands form a multi-category, high-, medium-, and low-level brand echelon, trying to share the industry dividend of China’s cosmetics market expansion and national consumption upgrade.
Category expansion shows confidence, diversified marketing refreshes cognition, research and development first and supply guarantee.
The company has acquired the British Tang Meixing brand to supplement the high-end baby and children’s high-end field, and has exclusively cooperated with the US C & D brand to improve the personal care home layout.Beauty market; at the same time focus on new product research and development, create star products, significantly increase production capacity, and achieve supply protection.
Third, the channel is renewed. The offline channel adapts to local conditions and consolidates traditional development.
The company’s eight major channels are fully covered. The channel innovation strategy is: department stores, KA, traditional distribution channels to improve store efficiency, CS, mother and child, and overseas emerging channels.
We believe that the company’s offline channels have a deep foundation and it is expected to re-ignite at several points after the adjustment.
Online channels have been reorganized, and e-commerce channels are ready to go.
The company continues to innovate online platforms, optimize old e-commerce, develop new e-commerce, upgrade special channel platforms, and improve customer satisfaction.
We believe that the company’s online 杭州夜生活网channels have great potential. After reorganization, it is expected to maintain medium and high-speed development.
Profit forecast predicts that the company will realize net profit in 18-20 years.
50,000 yuan, EPS0.
42 yuan, currently expected to correspond to the PE40, 29, 22X, the first coverage, given a “buy” rating.
Risks prompt domestic economic stall, improper brand upgrades, unfavorable new product launches, and poorer channel improvement