\u3000\u3 Shengda Resources Co.Ltd(000603) 808 Shenzhen Ellassay Fashion Co.Ltd(603808) )
In 2021, the revenue increased by 17.2 ~ 22.3% year-on-year, and the net profit deducted increased by 36.7 ~ 47.2% year-on-year
The company released the main operating data of 2021. In 2021, the company achieved an operating revenue of 2.3 ~ 2.4 billion yuan, a year-on-year increase of 17.2 ~ 22.3%, an increase of about 3 ~ 7% compared with 2019 (excluding the network revenue of baiqiu in 19 years); The net profit attributable to the parent company was 310330 million yuan, a year-on-year decrease of 25.8-30.3% and about 7-12% compared with 2019. The year-on-year decline in net profit attributable to the parent company was mainly due to the impact of the one-time income obtained by transferring part of the equity of the subsidiary baiqiu network in 2020. After excluding this impact, the non net profit was deducted by 260 ~ 280 million yuan, with a year-on-year increase of 36.7 ~ 47.2%.
We estimate that the company’s operating revenue increased by about 10% year-on-year in the fourth quarter and 8% year-on-year in Q3. After deducting the impact of baiqiu, it is estimated that the comparable caliber will achieve double-digit growth compared with 19q4; The net profit attributable to the parent decreased by about 26% year-on-year, and the decline of Q3 profit decreased by – 28% year-on-year, which was basically the same as that in the same period of 19 years. Overall, the revenue side has improved in the fourth quarter.
The main brand Shenzhen Ellassay Fashion Co.Ltd(603808) achieved steady growth, and many new brands entered a good growth period
Main brand Shenzhen Ellassay Fashion Co.Ltd(603808) : in 2021, the revenue reached 1.022 billion yuan, accounting for 43.62%, with a year-on-year increase of 8.88% and a decrease of 2.47% compared with 2019. The main brand Shenzhen Ellassay Fashion Co.Ltd(603808) has shown stable growth and sales scale basically restored to 19 years level. Tiktok channels have been developing steadily, the number of direct outlets has increased, the channel of franchising has been restored obviously, and many electronic business platforms have developed simultaneously. In 2021, vip.com and jitter platform were outstanding.
Laurel: in 2021, the revenue reached 246 million yuan, accounting for 10.50%, with a year-on-year increase of 68.19% and 110.45% compared with 2019. Laurel brand has been actively and effectively expanded, and the same store sales have also improved under the condition of continuous expansion of the number of stores.
Edhardy and edhardyx: in 2021, the revenue reached 307 million yuan, accounting for 13.10%, with a year-on-year increase of 42.76% and a decrease of 17.27% compared with 2019. EH brand in Hong Kong and Macao’s income continued to be affected by the epidemic situation, actively develop tiktok based e-commerce platform, and achieved excellent results, in 2021, brand revenue rose significantly.
Iro: in 2021, the revenue reached 593 million yuan, accounting for 25.31%, with a year-on-year increase of 9.34% and a decrease of 12.05% compared with 2019. In the first half of the year, the income of IRO brand was greatly affected by the European epidemic control measures, and has recovered significantly in the second half of the year. However, the depreciation of the euro has a large impact on the income side. At the same time, the direct sales channels in China have maintained effective expansion and the same store sales have improved.
Self portal: in 2021, the revenue reached 175 million yuan, accounting for 7.47%, with a year-on-year increase of 432.62%. SP brand is still in the stage of rapid growth, and on the basis of accelerating the expansion of stores, the single store performance of the brand is particularly excellent. At the same time, SP brand is good at using social media for drainage, and the online platform continues to develop at a high speed. It has become the brand with the largest sales scale on the company’s tmall platform.
The cultivation of multiple brands has achieved good results, and we look forward to the coordinated growth of various brands
In 2021, the company achieved good results in the cultivation of international multi brands. The main brand Shenzhen Ellassay Fashion Co.Ltd(603808) revenue side achieved stable growth and stable operation. The small brands laurel and self portrait grew rapidly and had strong growth potential. The EH brand experienced adjustment and revenue rebounded, and the overseas business of IRO gradually recovered. In the future, we look forward to the further effectiveness of the company’s multi brand group strategy, the expansion of multi brand coverage, and the realization of complementary advantages and synergy. Considering that the company’s positioning is high-end and mainly offline, there is uncertainty about the epidemic situation outside China and the recent situation of multi-point spread of the epidemic situation in China is relatively severe, we lowered the company’s profit forecast for 21-23 years. It is estimated that the EPS in 21-23 years will be 0.88/1.01/1.20 yuan respectively (compared with the previous profit forecast of – 8.2% / – 13.4% / – 14.1%), corresponding to 13 times and 10 times of PE in 22 and 23 years respectively, with low valuation Maintain the “buy” rating.
Risk tip: the impact of the epidemic outside China exceeded expectations, resulting in weak terminal consumption; The expansion of small brands is less than expected; Expenses and other investment exceed expectations; Exchange rate fluctuations affect the overseas business performance of some M & A brands.
