\u3000\u3000 Biem.L.Fdlkk Garment Co.Ltd(002832) (002832)
Key investment points
Precise positioning, high-end sports fashion track, showing strong consumption stickiness. As a high-end sports fashion brand that focuses on the middle and high-income male consumer group (men's clothing accounts for more than 70%), due to the sense of design (color and pattern elements are more suitable for the work and life scene needs of target consumer groups such as civil servants and enterprise executives), Version (covering the characteristics of narrow shoulders and middle-aged abdomen of Asians) The fabrics (imported from South Korea and Italy, with high comfort, strong sagging feeling and easy care) are very suitable for the needs of the target customer group, and are more sinking than other sports and fashion overseas old men's wear channels. The stickiness of Biem.L.Fdlkk Garment Co.Ltd(002832) brand customers is very strong (the single consumption joint rate of old customers is more than 3, and 70% of the consumption comes from old customers). At present, they are firmly in the top three or even the first place in the men's wear floors of department stores, Driven by the continuous and strong growth performance under the fluctuation of consumption environment, the revenue growth rate of q1-q3 on 18 / 19 / 20 / 21 reached 40% / 24% / 6% / 25% respectively, leading the growth of high-end clothing.
A few high-end clothing brands are still actively expanding. As of 2021q3, the number of channels of the company has reached 1053 (year-on-year + 12%, a net increase of 94 compared with the beginning of the year). In the whole year, the net increase of channels is expected to reach 150. On this basis, it is expected to increase by 180 in 2022, becoming one of the few high-end brands that have maintained rapid net increase of channels for four consecutive years. The rapid growth of the channel comes from the high profitability of the channel supported by products and brand strength. From the grassroots research of dealers, the operating profit margin of Biem.L.Fdlkk Garment Co.Ltd(002832) brand can reach the level of 20%, which is very excellent in the field of men's wear brands.
The strategy of opening a separate Golf store and T-shirt in 22 years is worth looking forward to. As a sports fashion brand with golf gene, golf series were mostly sold by displaying a small number of SKUs in club stores / shopping malls in the past, accounting for less than 10%. However, since the order meeting in autumn and winter 22, the fashion of golf series was improved and SKUs were more abundant under the leadership of new Korean designers, becoming the series with the best response to orders. In addition to the orders of franchisees, The company plans to open professional stores (mainly direct sales) for the golf line from 22h2 to further improve the reach of high-end people. In addition to the golf line, the company will focus on the promotion of strong category T-shirts (including polo shirts) and broaden the price band in 22 years, so as to attract more young customers to experience brand products.
Profit forecast and Valuation: we believe that the company has created accurate product positioning and diversified product promotion investment through continuous deep cultivation in the field of sports fashion, driving the continuous improvement and rapid growth of channel quality. At the same time, the improvement momentum of operation turnover efficiency is also very obvious, and there is sufficient growth space in the future. It is expected that the net profit attributable to the parent company in 21-23 years will be 608 / 788 / 987 million, Corresponding to the growth rate of 27% / 30% / 25%, corresponding to pe23 / 18 / 14x, optimistic about the track and growth, continue to recommend and maintain the "buy" rating.
Risk tip: the epidemic has repeatedly affected consumer confidence, and the expansion of new brands is less than expected
