报告名称：Shanghai Jahwa Alert(600315)Main focus for 2016 - M&A and Herborist recovery
报告类型：点评报告
报告日期：2015-12-17
研究机构：德意志银行
股票名称：上海家化
股票代码：600315
页数：1
简介：conference - Jahwa outlines focus on development for 2016
Shanghai Jahwa (SJ) hosted a press conference on 16 Dec, in which ChairmanXie Wenjian reviewed the second year (2015) of its five-year plan progress andoutlined the main focus for the 2016 business plan. Key points are:
SJ will maintain its five-year plan target, i.e., Sales targets to achieveRMB12bn with RMB2bn contribution from M&A, and rank among the topfivein terms of market share, although management admitted its five-yearplan is challenging, based on the company's performance in 9M15.
One of the biggest concerns for SJ is that Herborist, its top-performingbrand in the past, has seen a sales growth slowdown in 2015, mainly dueto sluggish department store performance, its primary channel. In 2016,management plans to change its strategy on branding, channels and newproduct launch for Herborist. First, it will increase investment into a subbrandof Herborist, Fresh Herb, which is dedicated to specialty chainchannels. Second, the company will further develop a standalone storeformat to increase interaction with consumers and enhance customerloyalty. SJ also aims to further penetrate emerging channels such asspecialty chains, Watsons, and maternal shops. Third, it will acceleratenew product launches for Herborist in 2016.
Actively seek M&A opportunities. Management commented that SJ isactively seeking M&A targets, e.g. domestic brands, Asian brands andwestern brands. Its focus is now extended to laundry care, kitchen andhousehold cleaning, beauty equipment, etc., apart from oral care and colormake-up, which have been mentioned in previous meetings. In addition,the new products launched by its JV with Pianjianhuang, established inJune, is expected to be out in the beginning of 2016.
New management team appointed. 1) Top management remainsunchanged. 2) A new strategic committee, comprising Xie Wenjian, LiuDong (Vice General Manager of Ping An Trust), and Deng Minghui (CFOand Vice General Manager of Ping An Life), has been nominated. 3) FuDingsheng, Huang Juechang (new), and Sun Dajian (new) have been appointed as independent directors, complying to regulation
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