Zhejiang Aokang Shoes Co.Ltd(603001) (603001)
China's leading brand of leather shoes has been deeply engaged in the shoe industry for more than 30 years
Founded in 1988, the company is mainly engaged in the R & D, production and sales of leather shoes and leather products. It is a well-known leather shoes brand in China. The company owns Aokang KANGLONG and other private brands, skechres and puma (PUMA) two agent brands. In 2020, Aokang's brand value reached 21.251 billion, ranking first in the brand value of China's footwear industry. The company has three manufacturing bases of Qianshi, Oubei and Chongqing and an intelligent logistics center. Its products are sold all over the country through direct or distribution channels. As of 21q3, the company has 2540 offline stores in China.
After the epidemic, the performance recovered rapidly and the gross profit margin continued to grow
Since 2016, the company's business has been affected by the downturn of the industry, along with the company's strategic transformation and the improvement of operating finance, the revenue of 21q1-3 was 2.134 billion, an increase of 36.9%, and the net profit attributable to the parent company was 45 million, an increase of 385.9%. By category, the revenue of 21h1 men's shoes was 885 million, an increase of 56.4%, accounting for 58.2%, mainly due to the company's new strategy focusing on men's shoes; By brand, Aokang, the main brand of 21q1-3, had a revenue of 1.342 billion, an increase of 41.0%; By channel, online revenue continued to grow, with 21q1-3 accounting for 16.7%. At present, the company focuses on men's leather shoes business, focuses on Aokang's main brand, gradually divests or turns other brands into online channels, and gradually adjusts the collection store according to the market response.
Focus on creating "more comfortable men's shoes"
The company worked with Junzhi to formulate strategic objectives for the next ten years and rapid growth plans for the next three years. With the help of five actions of strategic landing, channel expansion, image upgrading, operation upgrading and policy incentive, the company focused on the mainstream population and focused on the core strategy of "comfortable men's shoes".
The company not only increases the marketing promotion, brand image and channel optimization, but also improves the product quality. The four comfort series products recently launched by the company (micro air conditioning series, breathing series, Wanbu series and cloud series) are also powered by black technology.
Focus on Aokang brand and men's leather shoes. The price band of new products has been raised from less than 700 yuan to 600-1200 yuan. It is positioned as medium and high-end business fashion and targets young consumers under the age of 35. In addition, streamline and deepen SKUs, reduce the large-area distribution of stores, and effectively improve inventory management. In terms of consumer experience, product focus and presentation can bring better service experience.
Continuously integrate channel resources and iteratively upgrade the image of offline stores. In 21q3, some stores have been upgraded, the store design is more professional, comfortable and simple, the number of SKUs is simplified, and the element and characteristics of "men's leather shoes" are emphasized. In October 2021, the first flagship store opened in Ningbo, with sales exceeding 270000 on that day, sales of men's shoes increased by 1700%, and the average price increased by 48% year-on-year. The company plans to complete the upgrading of offline stores within 2 years, improve the proportion of stores in shopping centers, and highlight the improvement of brand tone.
Actively explore the transformation of digital intelligence, reduce costs and increase efficiency, and build a smart retail focusing on user needs
Continue to promote the company's digital intelligence transformation, implement the "machine replacement" strategy, introduce cutting-edge 3D design and R & D CNC equipment, upgrade PLM system, establish R & D life cycle management, and import MES visual data system, so as to improve timeliness with science and technology and human efficiency with intelligence.
From 2015 to 2020, the number of production personnel of the company decreased from 4368 to 2129, and the per capita output increased from 18000 pairs / person to 2200 pairs / person.
The business scene is broadened to increase rigid demand, and the development of domestic men's leather shoes can be expected
In recent years, the gradual development of the office and workplace industry and the promotion of urbanization have promoted the expansion of business scenarios, and the growth of leather shoes consumers has just stimulated their applicable scenarios. However, at present, the competition pattern of China's men's leather shoes industry is relatively scattered, and the high-end market is occupied by international well-known brands, the share of domestic head brands is small, and the category value has not been effectively led and highlighted. At the same time, since the Xinjiang cotton and hongxingerke events, the recovery trend of national tide has gradually become apparent. We believe that domestic men's leather shoes that can solve the pain points of traditional leather shoes and meet specific wearing scenes are expected to rise.
First coverage, buy rating
The company is deeply engaged in the men's leather shoes industry and continues to increase investment in scientific and technological research and development, product technological innovation and brand marketing construction; In 2021, the company, together with Junzhi consulting, is committed to creating "more comfortable men's leather shoes" and comprehensively improving the product comfort, sense of fashion and sense of science and technology. We use the PS method to estimate the company's value. It is estimated that the company's revenue from 2021 to 2023 will be 3.0 billion yuan, 3.4 billion yuan and 4 billion yuan respectively, and the net profit attributable to the parent company will be 40 million yuan, 100 million yuan and 170 million yuan respectively. The corresponding revenue per share will be 7.36, 8.48 and 9.97 yuan / share respectively, and the PS will be 1.17, 1.01 and 0.86x respectively. The average PS valuation of the comparable company in 2022 will be 1.51x, giving the company a reasonable ps1.000 yuan in 2022 51x, the corresponding share price is 12.85 yuan.
Risk warning: macroeconomic fluctuation risk; Covid-19 epidemic rebound risk; Market demand change risk; Human resources risk, etc.
