DEA shares (301177)
Event: the company released the 2021 annual performance express. In 2021, the company realized an operating revenue of 4.623 billion yuan, an increase of 87.57% at the same time; The net profit attributable to the parent company was 1.302 billion yuan, an increase of 131.11% at the same time; The net profit deducted from non parent company was 1.249 billion yuan, an increase of 131.05%. The company's performance is in line with expectations, which is basically consistent with the lower limit of the expected deduction of non parent net profit range of RMB 1.255 billion in the prospectus disclosed on December 10, 21.
The company achieved double high growth in revenue and performance in 2021. Among them, 21h1 / Q3 / Q4 company achieved operating revenue of RMB 2.320/10.91/1.212 billion respectively, with an increase of 177.68% / 64.40% / 25.50%, net profit attributable to parent company of RMB 729262/311 million respectively, with an increase of 382.16% / 63.57% / 23.49%, net profit attributable to parent company of 31.41% / 23.99% / 25.71% respectively, with a year-on-year change of + 13.32pct / - 0.12pct / - 0.42pct. The company's business performance continued to improve, mainly due to the optimization of brand communication, the continuous expansion of influence, and the improvement of superimposed channel construction and operation level.
Over the past 22 years, diamond sales are expected to continue to increase, and the fine location and opening of stores have been steadily promoted. With the company's unique brand emotional connotation, the consumption concept of "giving one person a lifetime" continues to be deeply rooted in the hearts of the people. The year-on-year growth rate of the company's sales from January to February is expected to continue to increase, and the same store will maintain year-on-year growth. The company has made steady progress in the process of opening stores, and the refined site selection is expected to promote the coverage of high-quality customers. In December 2021 / January 2022, the company increased 20 / 8 stores respectively, mostly Direct stores, mainly distributed in high-quality business districts in various cities, continued to play the role of offline stores in providing consumers with wearing experience and purchase channels, and established strong mental contact with consumers.
Investment suggestion: the company's store opening plan in recent two months is progressing smoothly, focusing on covering high-quality business district customers. With the gradual promotion of the channel network construction of the company's fund-raising and investment projects, the company is expected to open 10 flagship stores and 228 standard stores nationwide in three years. Aiming at the wedding diamond market, the company endows the brand with emotional connotation based on the purchase principle of "men can only customize one in their life". At the same time, multi-channel marketing makes efforts to further convey the brand concept to consumers and establish brand differentiation. At the same time, we are optimistic that the company will explore new growth points in the field of non wedding diamond decoration. We expect the net profit attributable to the parent company from 2022 to 2023 to be RMB 1.8/2.4 billion, corresponding to 21x / 16xpe respectively, maintaining the "buy" rating.
Risk warning: the risk of declining brand influence, pressure on single store income, improper publicity risk, outsourcing production risk and performance express are the preliminary calculation results. The specific financial data are subject to the annual report data disclosed by the company
