Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) first coverage report: moving towards happiness and fashion, the flagship of the industry set sail in full dress

Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) (600655)

Asset restructuring strengthens business synergy, and the “1 + 1 + 1” strategy starts around happy fashion

Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) , formerly known as the Yu Garden shopping mall, became the flagship platform of the happy industry flagship of focus on family customers after its reorganization in 2018. The company has many industrial clusters and many years of experience in compound industry operation. It promotes industrial development through the two wheel drive of industrial operation + industrial investment, and forms a compound industry ecology with the “1 + 1 + 1” strategy of “family happy consumption industry + urban industrial landmark + Wuxi Online Offline Communication Information Technology Co.Ltd(300959) membership and service platform”.

Integrated development of endogenous extension, rapid expansion of stores and seizing channels

Yu Garden owns two famous brands: “old temple” and “Asia one”, and its performance has been declining since 2014. In view of the development problem, the company adheres to the product operation mode of “endogenous growth, epitaxial expansion and integrated development”. In terms of endogenous, the company carries out the dislocation management strategy, stabilizes the layout of the first and second tier cities of Laomiao brand, promotes the iteration of Laomiao products with the “good luck” culture, and gains wide praise from consumers through the IP attribute series “Laomiao ancient charm gold”; By reducing the dimension and expanding into the third tier and below cities, Yayi brand promotes brand development with the expansion of target consumer groups and product types. In terms of extension, in recent years, the company has acquired IGI of international gem Institute and djula, a French designer brand, and cooperated with Damini, an Italian high-end jewelry brand, to set foot in the high-end and light luxury fashion jewelry industry at the downstream brand end, so as to achieve wide area coverage of subdivided industries. In terms of integration, the company laid out the gold mining industry in the upstream in its early years, and its performance has been stable in recent years. Superimposing the company’s midstream layout and downstream brand matrix, the company has realized the whole chain integration of the upstream, midstream and downstream of the industry, providing a continuous driving force for the development of the company’s jewelry business. In order to better achieve business coverage, the company has quickly opened stores in the form of franchise in recent years, and extended innovative store forms such as Laomiao good luck fashion store and Shanghai Laomiao direct store partners, and the store layout tends to be diversified.

Multi industry layout, multi system of construction company, follow the trend of national trend and broaden the industry track

The company covers cultural catering, food and beverage, beauty and health, cultural ecology, Guochao watches, real estate and other business sectors. In the cultural catering and food and beverage sectors, the company complies with the tide of food and beverage consumption with content, appearance and category innovation, and promotes the expansion of restaurants with chain operation, It also acquired the “shede” brand layout wine industry; in the beauty and health sector, it realized the differentiated layout of beauty fashion in the form of acquisition brand + self incubation brand, and provided all-round maintenance for pets in the three-party layout of platform, food and nursing products; in the cultural ecology sector, it broke through the barriers between craftsmen and customers through “owner”, so as to realize the aggregation and rapid development of handicraft market resources; In response to the trend of the national trend, the performance of the national trend watch plate has been reversed; In the real estate sector, the “honeycomb city” project has been continuously established to promote the “integration of industry and city”.

Investment advice

Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) rooted in the Yangtze River Delta, radiating the whole country, with obvious channel sinking advantages and rich industrial resources. We predict that the company’s revenue from 2021 to 2023 will be 51.4/59.8/70.9 billion yuan respectively, with a year-on-year increase of 16.7% / 16.3% / 18.6%; The net profit attributable to the parent company was 4.13/47.3/5.38 billion yuan respectively, with a year-on-year increase of 14.3% / 14.7% / 13.6%. As the company’s operation and investment business involve different fields, and different business segments are valued by segment valuation method, we believe that the overall reasonable valuation range of the company may be RMB 57.1-65.8 billion, which still has great room for improvement compared with the current market value, and the “recommended” rating is given for the first time.

Risk statement

Macroeconomic stall; Repeated epidemics lead to weak consumption; Safety of food and food additives

 

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