Lancy Co.Ltd(002612) (002612)
Key investment points:
The pan fashion business array from Yimei to Yanmei has gradually succeeded. The company has established a multi-level and multi-stage fashion business matrix from clothing beauty to beauty, and operates three business segments focusing on fashion women's clothing, medical beauty and green infants and children. Each business segment has also formed a brand matrix with different positioning, which has a certain synergy. Among them, the customer portraits of fashionable women's clothing and medical beauty have a certain overlap. Successful fashion brands also play a role in introducing and endorsing the reputation of new brands into high-end department stores. The company's profitability improved. In the first three quarters of 2021, the net profit attributable to the parent company reached 158 million yuan, a year-on-year increase of 216.07%.
The company's medical and beauty business expanded steadily, the three brands realized misplaced competition and synergy, the location advantages of stores were obvious, and the talent system and academic platform were successfully built. The company's medical beauty business has become the second largest business contributing to revenue, and the profit contribution of medical beauty business is the highest in 2020. The company's medical beauty business has three brands of "Milan Baiyu", "Jingfu medical beauty" and "gaoshengli", and has initially formed a regional layout centered on Chengdu and Xi'an. The positioning of the three brands, organization types and regional distribution are differentiated to realize dislocation competition, and achieve synergy by sharing well-known doctors and diagnosis and treatment equipment. The location of stores in areas with high population density, large flow of people and prosperous business district helps to enhance brand exposure and long-term customer base maintenance. The talent system and academic platform are relatively perfect, which helps to form the talent barrier of the company.
The company's clothing business revenue has warmed up and its location advantage is obvious. In H1 2021, the company's women's business revenue increased by 60.55% year-on-year, and the baby business revenue increased by 21.86% year-on-year; Women's clothing brand matrix is rich, with differentiation in customer positioning, design style, product line and brand concept, forming a coverage for customers of different types and ages; The company's clothing stores are stationed in high-end shopping malls and airports, occupy advantageous channel locations, and build a high-end sales terminal network.
Profit forecast: we predict that the operating revenue of the company from 2021 to 2023 will be 3.534 billion yuan / 4.311 billion yuan / 5.263 billion yuan respectively, with a year-on-year increase of 22.86% / 22.01% / 22.06%; The net profit attributable to the parent company was 233 million yuan / 325 million yuan / 398 million yuan respectively, with a year-on-year increase of 64.09% / 39.6% / 22.24%. It was covered for the first time and rated "strongly recommended".
Risk warning: medical malpractice affects the reputation of the enterprise, the epidemic situation is repeated, and the institutional expansion is less than expected
