Po Laiya (603605): Proposed to establish a joint venture with Spain’s PRIMA-DERM, committed to developing high-end anti-aging market: multi-brand layout

Po Laiya (603605): Proposed to establish a joint venture with Spain’s PRIMA-DERM, committed to developing high-end anti-aging market: multi-brand layout

Event On November 6, 2019, the company issued an announcement to invest in the establishment of a joint venture company: In order to explore and expand the anti-aging skin care market, the company plans to invest 2 million yuan in a joint venture with the Spanish cosmetics group PRIMA-DERM, mainly in China.Japan, South Korea, Victoria, New Zealand and Southeast Asia military promote and sell PRIMA-DERM products belonging to the anti-aging brand Singuladerm.

Among them, the company intends to contribute RMB 1.06 million, accounting for 53%, and PRIMA-DERM intends to contribute RMB 0.94 million, accounting for 47%. 杭州夜网论坛 The scope of consolidated statements of the consolidated company of the joint venture company.

Comments Singuladerm is a well-known anti-aging brand mainly used in Spain as a “peptide” ingredient: the brand belongs to the well-known skin care group PRIMA-DERM, and has more than 30 years of skin care ingredient research and development experience.

In 1987, the founders Jose and Antonio created the world’s leading active ingredient research and development company Borun Corporation). In 2001, the peptide peptide R & D and production plant was established. In 2008, the skin care group PRIMADERM was established, which belongs to Singuladerm.The brand focuses on various peptide small molecule anti-aging products.

The Spanish cosmetics group PRIMA-DERM supplies the Singuladerm brand products with exclusive license to the joint venture company. The main rights and obligations include: ① ownership trademark license agreement with the joint venture company, which exclusively licenses the joint venture company to use the Singuladerm brand for free;Sell products to joint ventures; ③ Issue a power of attorney or related documents authorizing the joint venture to register or register products with the competent authority in the territory free of charge; ④ Produce for the joint venture and provide priority products to the joint venture; ⑤ Place products on the market to the joint venturePrior to that, any new products designed by PRIMADERM and sold under the Singuladerm brand were first shown to the joint venture.

Listed companies are mainly responsible for assisting the development and sales of the Singuladerm brand in the Chinese market. The main rights and obligations include: ① assisting the joint venture to obtain relevant licenses, register and establish business in China; ② promoting the progressive supply of the joint venture and PRIMA-DERMAgreement; ③ Provide loans to the joint venture company according to their needs; ④ Provide venues, personnel, services and marketing tools to the joint venture company at preferential prices and conditions; ⑤ Assist the joint venture company to apply for tax reductions and exemptions permitted by Chinese law and other relatedDiscounts, etc .; ⑥ Assist in the promotion and sales of products through its own sales network.

Investment suggestion The company proposes to establish a joint venture with Spain’s PRIMA-DERM, which is committed to developing the high-end anti-aging market, opening up a multi-brand layout, and having the opportunity to go further in research and development.

The 2019-2021 forecast of the company’s net profit attributable to its parent is 3, respectively.

85, 4.

99, 5.

99 ‰, one year + 34%, + 29%, + 20%, PE corresponding to the current market value is 47, 36, 30 times, respectively, maintain BUY rating.

Risk reminder investment still needs approval from relevant domestic and foreign departments, new brand development 上海夜网论坛 is less than expected, and market competition is intensifying