\u3000\u3 China Vanke Co.Ltd(000002) 345 Guangdong Chj Industry Co.Ltd(002345) )
The leading fashion jewelry brands have made great efforts to join in and expand to drive high growth. They are given a "buy" rating for the first time
Guangdong Chj Industry Co.Ltd(002345) is a leading brand of Eastern Pioneer Driving School Co.Ltd(603377) jewelry, which focuses on young urban women and aims at national fashion and light luxury. We believe that the company complies with the changing trend of the gold and jewelry industry, establishes a differentiated brand image with high-quality and fashionable jewelry on the product side, and makes efforts to join stores on the channel side to accelerate the expansion, which is expected to continue to grow at a high speed. We expect the net profit attributable to the parent company from 2021 to 2023 to be 346 / 451 / 566 million yuan, corresponding to EPS of 0.38/0.50/0.63 yuan, and the current share price corresponding to PE of 14.4 / 11.0 / 8.8 times. It is covered for the first time and given a "buy" rating.
The gold and jewelry industry is growing steadily, with the rise of young customers, leading the trend of fashion consumption
The upgrading of consumption and penetration rate are expected to drive the long-term sustainable growth of China National Gold Group Gold Jewellery Co.Ltd(600916) jewelry industry. From the perspective of consumption trend, Guochao is at the right time. Technological innovation expands the daily consumption demand of gold products; The demand of the younger generation to "please yourself" and the help of new channels such as e-commerce live broadcast have promoted the vigorous development of fashion jewelry of design and face value online. In terms of competition pattern, the sinking and expansion of head brands and the improvement of concentration are still the main theme of the industry, while R & D and design ability, high-quality products, differentiated brand image and strong channel ability have become the key to brand side competition.
Guangdong Chj Industry Co.Ltd(002345) : fashion jewelry design, brand differentiation, and rapid expansion of franchise channels
(1) products: the company attaches importance to R & D and has a deep accumulation in the field of fashion jewelry. By building a high-quality product matrix with oriental aesthetics and fashion design, it is expected to continue to benefit from the trend of national fashion and the rise of young consumers.
(2) channels: in the early stage, the company established a medium and high-end brand image through the core business circle of high-quality direct stores, and began to join the channel layout in recent two years. The stores are expected to expand faster. At present, China's sinking market still has a broad space to expand stores. For terminal franchisees, Guangdong Chj Industry Co.Ltd(002345) main fashion jewelry categories are differentiated, which helps to attract incremental consumer groups such as the younger generation; Cloud store and other digital systems provide multidimensional empowerment for franchise store operation; In addition, the company's single store model is excellent, and the low investment in opening stores helps to reduce business risks, which is increasingly valued by franchisees under the background of the epidemic. The company expects to achieve a net growth of more than 150 franchise stores in 2021, and plans to open 200300 stores per year in the next 3-5 years. The acceleration of store expansion is expected to drive the company's sustained and high growth.
(3) women's bag: the company adjusted the Fion brand management and channel strategy, and the rejuvenation transformation has achieved initial results. The superimposed live broadcast and other online channels have performed well, the business condition has improved significantly, and the risk of goodwill impairment has been reduced.
Risk tips: repeated epidemic, intensified industry competition, less than expected expansion of franchise, goodwill impairment risk, etc
