Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) industrial operation and investment are driven by two wheels, and multi-point efforts are made to build a leader in household consumption industry

\u3000\u3000 Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) (600655)

Relying on the two wheel drive of "industrial operation + industrial investment", the company continues to increase the operation of consumer industry, gradually improve the product matrix, and the performance is expected to be released gradually.

Key points supporting rating

Fosun holdings injects new vitality and creates a leader in family happy consumption industry. In 2018, the company completed major asset restructuring and became the flagship enterprise of Fosun International's "happy" ecological sector. Driven by industrial investment and industrial operation, the company has developed into a family happy consumption leader integrating jewelry fashion, composite real estate and brand consumption. 21q1-3 achieved revenue of 32.2 billion yuan, an increase of 11% year-on-year; The net profit attributable to the parent company is 1.8 billion yuan.

Jewelry fashion started to join high-speed exhibition stores, and the brand matrix continued to expand, promoting high performance growth. Jewelry fashion business is the pillar industry of the company, with a revenue of 21.9 billion yuan in 21q1-3. The time-honored brands "Laomiao" and "Yayi" have implemented the differentiated development strategy, and the number of high-speed stores has reached 3769; Acquire djula and Damiani, lay out medium and high-end product lines, accelerate vertical integration and expand to mining, inlay, identification and other links; Test the water, cultivate the diamond field and take the lead in the layout of China's terminal retail.

Enter the high-quality track and contribute to the increment of performance. The single store model of noodle shop has been verified, the chain strategy has achieved initial results, and the accelerated expansion of stores in the future is expected to further release performance; The acquisition of Jinhui Liquor Co.Ltd(603919) and Baijiu liquor entered the liquor track, and the synergistic effect of the Yu Garden and the Fuxing Yu Garden was remarkable, and the results were brilliant. Grasp the high growth dividend of the cosmetics industry, increase R & D investment and deeply layout the cosmetics field.

The reserve of real estate projects is of high quality and promotes development in coordination with the consumer industry. The composite real estate business implements the strategy of "industry city integration", helps the company obtain land at a low premium and thickens the gross profit of the business sector; The comprehensive business of commercial operation and property is deeply enabled by science and technology, and it is expected to accelerate the recovery after the epidemic. Valuation

As the leader of diversified household consumption industry, the company improves the brand matrix through internal upgrading and extension acquisition. It is estimated that the revenue in 21-23 years will be 51 / 59.9/69.9 billion yuan, EPS will be 101 / 1.13/124 million yuan, and the corresponding PE will be 10.0x/9.0x/8.1x respectively. It will be covered for the first time and given a buy rating.

Main risks of rating

Repeated covid-19 epidemic, fluctuation of international gold price, difficulty of multi business collaborative management and other risks

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