DEA shares (301177)
With the label of "only one person in a lifetime" of its Dr brand, DEA shares quickly came out of the circle: DEA is a jewelry brand company. Its brand Dr focuses on marriage and love people and provides customized high-quality diamond inlaid jewelry such as proposal diamond rings and wedding rings. With the innovative concept of "only one person in a lifetime" and customized business model, it has achieved rapid development and established a unique brand image, which is deeply rooted in the hearts of the people. In the first three quarters of 2021, the company realized a revenue of 3.41 billion yuan and a net profit attributable to the parent company of 990 million yuan. As of the first half of 2021, the company had 375 stores.
Brand culture: the original purchase rule of "only one person for a lifetime" highlights the "unique" characteristics, forms a unique brand culture barrier and is difficult to copy. Dr brand originally created the purchase rule of "men can only customize one in their life", which restricts the purchase qualification by binding ID card, integrates the brand with the emotional connotation of "life, only and true love", and forms an effective separation from competitive products. The single-minded contract meets people's desire for security in marriage and love. A Dr diamond ring represents that boys have not bought for other girls in the past and will not buy for other girls in the future. At the same time, with Dr continuously strengthening its brand concept over the years and taking the lead in seizing consumer cognition, it is difficult to be copied and replaced, and the brand cultural barrier has a certain sustainability.
Value added services: multi ceremony planning, increase interaction with consumers, improve conversion rate and enhance brand stickiness. When men buy diamonds for the first time, they will sign the purchase instructions of "only give one person a lifetime" and check their ID card on the "true love courage slate". In the witness of Dr true love wall, the two sides signed a true love agreement and made a solemn commitment. In addition, Dr offline stores are equipped with a proposal area and marriage strategists, which can help plan the sweet diamond purchase process with true love Q & A interaction, the romantic proposal ceremony and even the wedding organized by the store. Through these rich service experiences, Dr further meets the emotional needs of consumers and strengthens Dr's unique brand image.
Brand marketing: celebrity endorsement + film and television implantation to promote the brand concept, and multi platform publicity such as xiaohongshu, microblog and short video continue to deepen the interactive transformation. The company invites many celebrities in the entertainment / sports / E-sports circle to choose Dr as a proposal ring. The choice of a pair of celebrity lovers not only improves the brand awareness, but also strengthens the true love core of the brand. The company is well aware of the post-95 interests, and online social media can well initiate topical discussions. As of September 2021 Kwai DR has more than 20 million fans in micro-blog, WeChat, jitter, tiktok and other famous Internet platforms, significantly higher than its peers. On social platforms such as microblog, station B and little red book, Dr skillfully makes use of the attributes of each platform to achieve good communication results through self-made content, fan co creation, KOL publicity and other forms.
Profit forecast and investment rating: DEA Co., Ltd. is a jewelry company with unique brand connotation, with high brand awareness, deep brand barriers, excellent marketing ability and profitability. After listing in the future, we expect the company to further sink its stores and increase its revenue and profit, We expect that the company will realize a net profit attributable to the parent company of 1.37 billion yuan / 1.92 billion yuan / 2.46 billion yuan in 2021-23, with a year-on-year growth rate of 144% / 40% / 28%. The company's issue price is 116.88 yuan, and the issue price corresponds to 34 / 24 / 19 times of PE in 2021-23. It is recommended to pay active attention.
Risk tips: identity information leakage, falling demand for love and marriage diamond accessories, intensified market competition, etc.
