Comefly Outdoor Co.Ltd(603908) (603908)
Deep cultivation of professional camping track, focusing on outdoor camping equipment, travel clothing continues the high-performance gene of equipment
Founded in 2003, the company is mainly engaged in camping tents, outdoor clothing and other outdoor products. The brand business (big Mu and small mu) is mainly in the Chinese market to fully meet the wearing needs of professional and mass consumers; OEM / ODM business provides global customers with high-quality tent product R & D and production, and the products are exported to Europe, Oceania and other international markets.
The rise of camping led to a high increase in performance. The revenue of 21q1-3 was 720 million (+ 41.8%), and the net profit attributable to the parent company was 70 million (+ 44.2%)
In 2020, the revenue was 640 million yuan, an increase of 21.4%, of which the ODM / OEM revenue was 480 million yuan and the brand operation revenue was 160 million yuan; In 2020, the net profit attributable to the parent company was 46 million yuan, an increase of 12.7% at the same time; The main reason is that the rise of camping has led to the increase in the number and frequency of outdoor camping participants, thus driving the growth in the demand for outdoor camping supplies. In terms of regions, export is the main and the European market accounts for a relatively high proportion. In 2020, export will increase the expansion of European and American markets, The revenue in Europe was 386 million yuan (+ 33.6%), and the revenue in North America increased by 81.5%; the Chinese market withstood the pressure of covid-19 epidemic, and the revenue in 2020 was 160 million yuan (+ 3.8%).
ODM / OEM: global base distribution, sufficient capacity & supply chain coordination to achieve fast reaction
At present, the company has three production bases in China, Vietnam and Bangladesh. Under the epidemic situation, the company can flexibly allocate production capacity, quickly respond to market and customer needs, enhance customer stickiness and consolidate the market share of core business areas; At the same time, by arranging the supply chain, logistics warehousing and production base in advance, we can ensure that the production capacity covers the demand of future orders. Comefly Outdoor Co.Ltd(603908) continue to implement the digital center, strengthen informatization, Internet and digitization, and gradually transform to an intelligent chemical plant. In 2021h1, the revenue of decathlon, the largest customer, accounted for more than 50% of the total revenue of OEM business, and the sales of the five core customers increased steadily.
Brand: Damu continues to improve its brand influence, Xiaomu precision market promotion and channel sinking, and Damu makes high-quality, high-value and cost-effective products, providing one-stop outdoor experience for all products. Cold mountain series, a popular product, has been continuously upgraded since its launch in 2003. The total weight of the latest 5th generation tent is controlled within 3kg; Continuously strengthen channel expansion and brand cross-border cooperation, enhance brand influence, and establish the leading brand position in the comprehensive exquisite camping industry. Xiaomu is positioned as a high-performance travel clothing brand that continues the outdoor gene of Damu, and its products cover diversified scenes such as daily commuting, camping and sports; Precise marketing and channel sinking.
Recently, Haikou Comefly Outdoor Co.Ltd(603908) , a wholly-owned subsidiary of the company, signed a capital increase agreement with the campsite brand Wuhan hot wilderness to lay out the downstream camp market, which will help the business coordination between the two sides in the future and bring a positive impact on the company’s domestic sales business.
The global outdoor market is growing steadily, the European and American markets are relatively mature, and the post epidemic exquisite camping boom promotes the development of the Chinese market
At present, the outdoor sports market in Europe and the United States has developed to a more mature stage and has a high degree of participation. In 2020, the participation rate of outdoor sports in the United States reached a new high of 53%; There is still much room for growth in China’s outdoor sports market. The number of medium and high-end brands is small and the market concentration is low. With the rise of camping after the epidemic, the demand for a healthy lifestyle under the superposition of consumption upgrading, and the gradual penetration of local brands into the medium and high-end outdoor products market, the concentration is expected to improve and benefit leading enterprises in the future; In addition, e-commerce channels have the advantages of directly facing end consumers, fast information feedback, a wide range of customers, and are not limited by time difference and region. They are gradually replacing physical stores as the main sales channel in the outdoor products market.
First coverage, give buy rating. Since its establishment in 2003, the company has deeply cultivated professional camping segments, and the main brand Damu focuses on professional camping to meet the needs of professional equipment and clothing in various scenes; The sub brand Xiaomu continues the professional gene of Damu and is committed to providing high-performance travel clothes for the public; OEM business is committed to providing global customers with the development, design, production and manufacturing of high-quality tent products; At the end of November 2021, the company will participate in the hot wilderness, which will effectively integrate downstream resources and realize upstream and downstream coordination. We estimate that the revenue from 2021 to 2023 will be 920 million yuan, 119 million yuan and 1.44 billion yuan respectively, the net profit attributable to the parent company will be 80 million yuan, 120 million yuan and 160 million yuan respectively, the corresponding EPS will be 1.3, 1.8 and 2.4 yuan / share respectively, and the PE will be 30, 21 and 16x respectively; Pe27x is given to the company in 2022, corresponding to the share price of 48.8 yuan / share.
Risk tip: the international political environment changes, covid-19 epidemic lasts for a long time, the growth of outdoor industry slows down, market competition intensifies, the sales proportion of the largest customer is relatively high, there have been stock price changes recently, and there are risks such as valuation deviation of cross market comparable companies.
