Baoxiniao Holding Co.Ltd(002154) (002154)
Baoxiniao Holding Co.Ltd(002154) : medium and high-end business leisure clothing brand
Founded in 2001, the company implements the development strategy of “one master, one deputy, one vertical and one horizontal”, and adheres to building a multi brand matrix. At present, the brands owned or represented by the company include Baoxiniao Holding Co.Ltd(002154) , hazzys, kemiche, lefeiye, BAONIAO, etc. all brands meet the dress needs of middle and high-end people on different occasions. There are three major production bases in Wenzhou Yongjia, Shanghai Songjiang and Anhui Hefei. By creating the “three clouds” intelligent manufacturing system, fully meet the personalized and fashionable needs of consumers, and take the lead in leading the garment industry to explore the road of mass personalized customization. In 2021, the company issued non-public shares, and the actual controller and chairman of the company planned to subscribe in full for RMB 800 million (RMB 302 million / share to subscribe for 273 million shares). After the completion of this fixed increase, the shareholding proportion of the actual controller increased to 39.4%; in November 21, the non-public matters had been approved by the CSRC.
21q1-q3 company’s revenue was 2.97 billion, an increase of 31.3%. In 2020, the revenue was 3.79 billion yuan, an increase of 15.7%, of which Baoxiniao Holding Co.Ltd(002154) , hazzys and BAONIAO accounted for 34%, 33% and 21% respectively. Since the return of the business focus to the main business in 2017, the net profit has continued to increase. In 2020 and 21q1-q3, the net profit attributable to the parent was 370 million (+ 74.5%) and 370 million (+ 52.5%) respectively, and the net profit deducted from non attributable to the parent was 297 million (+ 177.0%) and 309 million (+ 57.7%) respectively.
In terms of brands, in 2020, hazys’ revenue was 1.23 billion, accounting for 33.4%. In the case of streamlining stores by other brands in 20 years, the number of hazys stores maintained growth; According to the channel, the electricity business channel accounts for 16% in the 20 years, and the growth channel of tiktok and other emerging channels is strong.
Profitability continued to grow. In 2020, the gross profit margin was 63.38%, with an increase of 1.68 PCT. 21q1-q3 benefited from the growth of online share and the improvement of profitability of various channels, driving the growth of gross profit margin. In 2020, the company’s net interest rate increased by 4.06pct at the same time of 10.30%, mainly due to the decrease of asset impairment loss and management expense rate.
Inventory turnover days remained stable. In 2020, the company’s inventory turnover days are 257 days, with a decrease of 6 days. The company vigorously promotes customized business and creates a business model of setting production by sales; At the same time, by strengthening the planning of product R & D, procurement and production, and increasing the fast reaction of the supply chain, we can improve the production and sales rate and effectively control the inventory.
Baoxiniao Holding Co.Ltd(002154) the brand makes light formal clothes, expands the wearing scene, and personalized customized services empower the products
In the face of the gradual slowdown in the growth of traditional business men’s wear and the change in the demand of mainstream young men’s consumer groups, Baoxiniao Holding Co.Ltd(002154) brand pays attention to the iterative upgrading of product rejuvenation and fashion, and launches light formal series leisure suits to expand the wearing scene. In the future, Baoxiniao Holding Co.Ltd(002154) brands will mainly increase the proportion of large stores and expand the blank market through new expansion and expansion, Improve the overall store scale (up to 21h1, there are 772 offline stores, including 224 directly operated stores and 548 franchised stores); adopt “self owned R & D + professional colleges + international institutions R & D” Combined with, it has made a breakthrough in the comprehensive research and development of sports suit fabric version style and wearing experience, and expanded the launch of sports suit and other categories. Sports suits will effectively solve the pain points of low-frequency and functional consumption of traditional suits, realize high-frequency consumption, seize the market share of jackets, improve the performance of single stores and improve the repurchase rate of customers.
Hazys focuses on the medium and high-end market with British urban style, multi-channel marketing and deepening the brand image
Hazys is the company’s dominant brand. In 2017-20, the revenue increased from 654 million to 1.233 billion and cagr23.3 billion 5%, the revenue of 21h1 was 468 million yuan, an increase of 48.4%. The rapid growth of hazys reflects the company’s overall operation ability. In terms of product research and development, hazys follows the quarterly development theme of South Korea, carries out independent research and development in combination with the needs of the Chinese market, and strives for perfection in product style, product quality and version style. In terms of channel construction, hazys strictly selects high-quality shopping centers and high-quality department stores to expand channels and improve channel quality. In terms of brand promotion and customer service, improve the brand image, comprehensive customer experience, word-of-mouth and repurchase rate by means of “International Brand Co branding + cross-border cooperation + Star Store Manager + brand tour + brand experience activities”.
BAONIAO’s brand positioning, professional clothing group purchase, and rapid development of direct sales, agents and key customers
In 2020, BAONIAO brand will return to the main business development of professional wear and vigorously expand the school uniform business, strengthen direct marketing, expand the market share with the help of franchisees’ resource advantages, refine and strengthen its own products internally, and provide excellent services through strategic cooperation with outsourcing manufacturers externally. BAONIAO has many patents such as antibacterial ready-made clothes, designs its own style fabrics and provides special research and development for customers; High tech equipment covers the whole process from product design to production, and digital control improves efficiency. BAONIAO brand will continue to focus on direct sales, supplemented by agents and major customers, develop the troika in a balanced manner, and increase the development and development of the group’s major customers.
Combine with other brands to fully blossom and help the company develop with high quality and stability
Lefeiye’s brand positioning is high-end outdoor leisure, offline outlets establish brand image, and online channels expand sales scale. In 2020, lefeiye’s revenue will be 182 million, an increase of 30% at the same time; Kemiche brand focuses on shirt customization, and high cost performance and non ironing technology help the steady growth of the brand. In 2020, kemiche’s revenue will be 164 million, an increase of 14% at the same time; Solo brand carries out brand building and endorsement around the goal of building the first professional customized brand, and the high-end private customized target is high-end business people; East bolini focuses on making light and luxurious men’s clothing in combination with Italian clothing concept and taste; Yili special is a high-end school uniform group purchase brand. In 2020, it will focus on strengthening the expansion and signing of large orders.
First coverage, give buy rating.
At present, mature brands Baoxiniao Holding Co.Ltd(002154) , haggis and BAONIAO account for 80% – 90% of the overall scale. Among them, Baoxiniao Holding Co.Ltd(002154) brand expands its categories by opening large stores, focuses on Western-style clothing categories, deeply cultivates the western-style clothing brand, and strives to become the first brand of Chinese Western-style clothing; Haggis brand continues to promote brand development by opening large stores, expanding categories and expanding franchise markets; By actively expanding the group’s major customers, BAONIAO brand adheres to the balanced development of the troika, focusing on direct sales, supplemented by agents and major customers. We estimate that the company’s revenue from 2021 to 2023 will be 4.58 billion, 5.61 billion and 6.89 billion respectively, the net profit attributable to the parent company will be 510 million, 660 million and 870 million respectively, the corresponding EPS will be 0.4, 0.5 and 0.7 yuan respectively, the PE will be 14, 11 and 8x respectively, and the corresponding target price will be 7.75 yuan per share.
Risk warning: price fluctuation of raw materials; The expansion of outlets is not as expected; Uncertainty of investment project income; Risks such as industry competition and change.
