Zhejiang Semir Garment Co.Ltd(002563) ( Zhejiang Semir Garment Co.Ltd(002563) ) the company’s revenue in 21 years was 15.419 billion (+ 1.41%), and the net profit attributable to the parent company was 1.486 billion (+ 84.39%).
The company released the 2021 performance express. In 2021, the company’s revenue was 15.419 billion yuan, a year-on-year increase of 1.41%; The net profit attributable to the parent company was 1.486 billion yuan, a year-on-year increase of 84.39%. Quarterly, the company’s 21q1 revenue was 3.310 billion yuan, an increase of 20.91%, 21q2 revenue was 3.206 billion yuan, an increase of 7.01%, 21q3 revenue was 3.504 billion yuan, an increase of – 5.69%, and 21q4 revenue was 5.399 billion yuan, an increase of – 6.2%;
The company’s net profit attributable to the parent company in 21q1 was 353 million yuan, an increase of 191678%, that in 21q2 was 313 million yuan, an increase of 749966%, that in 21q3 was 278 million yuan, an increase of 42.85%, and that in 21q4 was 543 million yuan, an increase of – 7.97%.
The high performance increase is mainly due to the low base caused by the loss of K group in 20 years and the continuous improvement of the company’s operation quality.
The operating performance of the company in the past 20 years was affected by the epidemic situation and the loss of French kidiliz group, with a low base. The company completed the transfer of French kidiliz group in early September of 20 years. Excluding the consolidated statement loss of French kidiliz group in the same period of 20 years, the net profit attributable to the parent company in 20 years is about 1.3 billion yuan. Calculated according to comparable standards, the net profit attributable to the parent company in 21 years is expected to increase by about 14.06% year-on-year.
In the past 21 years, the company continued to adhere to the principle of “taking consumers as the center” and continued to promote the construction of core competencies such as brand operation, product innovation, retail experience and supply chain management; Strive to improve the company’s product strength, brand strength and channel strength; Accelerate the digital transformation of enterprises, promote the online business of stores, and launch the operation mode of physical stores + online cloud stores; Expand the live broadcast coverage platform, optimize the channel structure and capture emerging channel opportunities. The quality of the company’s existing business operation has been continuously improved, and the company’s operating revenue and gross profit margin have shown double growth in 21 years.
In January, the scale of omni-channel retail increased by 35% at the same time, with a double-digit increase year-on-year before and after the Spring Festival
In January, the company’s omni-channel retail sales (including brands, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) , and direct franchises) increased by more than 35% year-on-year, of which, the year-on-year growth of Senma casual wear was more than 30%, and the year-on-year growth of barabara children’s wear was about 40%. Online e-commerce achieved high double-digit growth year-on-year in January.
By eliminating the dislocation of the Spring Festival and comparing the retail situation in the 15 days before and after the new year’s Eve, the company’s omni-channel, Senma brand omni-channel and barabarabara brand omni-channel retail scale achieved high double-digit growth. Among them, the year-on-year growth of Senma offline and Bara offline was between 16% – 17%, and the year-on-year growth of online business was higher during this period. It can be seen that the retail situation around the Spring Festival in 22 years increased relatively fast.
Children’s wear and adult wear brands are concentrated in the head, with Barra and Senma leading the market
From 2015 to 2020, the market share of top 11 children’s clothing brands increased from 11.2% to 16.8%, and it was 16.4% in 2021; The market share of top 11 adult clothing increased from 10.3% to 14.4%, and 13.8% in 2021. Although the admission of many new brands intensifies the market competition, the overall market share shows the same trend of head concentration. In 2021, China’s top five children’s wear brands accounted for 7.1%, 2.0%, 1.3%, 1.3% and 0.8% respectively. Bala brand ranked first in children’s wear with a market share of 7.1%, far exceeding the second, and Senma brand ranked 10th in adult wear.
Strengthen the leading advantage of children’s wear and continuously improve the brand voice
In 2022, Bala brand will launch a new brand positioning. On the basis of emphasizing “different childhood”, the brand will further strengthen the exclusive advantage of “large-scale, high-quality and omni-channel”, become a “children’s fashion brand that understands growth best”, and focus on the technology that understands growth best, the experience that understands growth best, and the design that understands growth best Big data that best understands growth develops in four directions.
In 2022, Bala will build two heavyweight brand marketing activities to enhance the brand voice and sales through linkage with third-party e-commerce platforms and well-known shopping centers. Carry out content interaction around its own members and fans, digital operation, improve the repurchase rate of members and enhance the user experience. We should strengthen the store and flagship store’s opening, focus on the quality of the shop, and strengthen the operation and marketing capabilities of tiktok, such as the vibrant voice.
High end production lines cooperate with high-end channels, and the brand is upward to meet the segmentation needs
Bala brand will create new products around Bala T, dress, down jacket and shoes, occupy the minds of consumers and improve the market share. At the beginning of 2022, the spring co branded series of barabarabara x Jason Wu has been launched, the price is higher than the conventional model, and the selling out rate is good.
Bala will launch a high-end line in the second half of 2022, focusing on medium and high-end shoes and clothing in urban outdoor (Urban camping, mountaineering, etc.), and the product design version, fabric and pricing will be higher than those of conventional models. In terms of channels, high-end series product stores will open online exclusive stores and offline independent stores, and in store stores and buyer stores will be opened in high-quality shopping center channels. Double upgrading of products and channels to promote the brand upward.
Maintain profit forecast and buy rating. The three child policy is expected to promote the expansion of the market demand for children’s clothing, the company’s children’s clothing and adult brands take the lead in the market, the children’s clothing business brand is upward, and strengthen the leading advantage. We estimate that the company’s revenue in 202223 will be 17.6 billion yuan and 20.3 billion yuan respectively, the net profit attributable to the parent company will be 1.8 billion yuan and 2.2 billion yuan respectively, the corresponding EPS will be 0.7 and 0.8 yuan respectively, and the PE will be 10 and 8x respectively.
Risk tip: the epidemic situation fluctuates repeatedly, the improvement of offline channel store efficiency is less than expected, and the growth rate of online channel slows down. The performance express is only the preliminary accounting result, which shall be subject to the annual report.
