\u3000\u3 Shengda Resources Co.Ltd(000603) 808 Shenzhen Ellassay Fashion Co.Ltd(603808) )
Events
The company disclosed the main operating data of 2021. According to the company’s preliminary accounting, the company achieved a revenue of about 2.3-2.4 billion yuan in 2021, with a year-on-year increase of 17.2% – 22.3%; The net profit attributable to the parent company was about 310330 million yuan, a year-on-year decrease of 25.8% – 30.3%; Deduct non net profit of RMB 260280 million, with a year-on-year increase of 36.7% – 47.2%.
Key investment points
The revenue side of 21q4 company is stable and continues to improve under the background of epidemic and warm winter: on the revenue side, in 2021, the company achieved a revenue of about 2.3-2.4 billion yuan, with a year-on-year increase of 17.2% – 22.3%. Under the comparable caliber (excluding the impact of baiqiu), the annual revenue of 21h1, 21q1-q3 and 21 decreased by 2%, 1% and 3% – 7% respectively compared with the same period of 19 years. The company’s revenue showed a quarterly improvement trend. On the net profit side, in 2021, the company realized a net profit attributable to the parent company of about 310330 million yuan, with a year-on-year decrease of 25.8% – 30.3%. The decline is mainly due to the disposal of part of baiqiu’s equity by 20q1 company, which obtained a total one-time investment income (before tax) of 298 million yuan, forming a high base of net profit. The net profit attributable to the parent company in 21 years decreased by 7.6% – 13.2% compared with 19 years. We estimate that the company realized a net profit attributable to the parent company of 66-86 million yuan in 21q4, Compared with the same period of 19 years, it decreased by 18.5% to an increase of 6.2%.
Shenzhen Ellassay Fashion Co.Ltd(603808) ‘s main brand grew steadily, and the new brand grew better: tiktok, 2021, 1) the main brand ELLASSAY realized 1 billion 22 million yuan /+8.88%, which was basically the same as the 19 years. The number of direct shops increased, and the performance of vip.com and jitter online channels was excellent. The growth of supporting brand was steady, and the Shenzhen Ellassay Fashion Co.Ltd(603808) brand income accounted for 43.6%. 2) Laurel achieved a revenue of 246 million yuan / + 68.19%. Thanks to the expansion of the number of stores and the improvement of store efficiency, Laurel’s revenue scale increased significantly, accounting for 10.5%; 3) EdHardy and EdHardyX achieved 307 million yuan /+42.76% revenue, and tiktok channels promoted 21Q4 revenue growth, and now returned to 80% level in the same period of 19 years, with income accounting for 13.1%. 4) Iroparis achieved a revenue of 593 million yuan / + 9.34%, a decrease of 12.0% compared with the same period in 19 years. Since 21h2, with the normalization of overseas epidemic, overseas business began to recover, and Q3 revenue has achieved positive growth compared with the same period in 19 years. However, due to the depreciation of Euro compared with RMB (according to the people’s Bank of China, 21h2, the depreciation of euro against people’s currency is about 7%), it has affected the revenue growth of brand statement end, and the current revenue accounts for 25.3%; 5) Self portal achieved a revenue of 175 million yuan, more than five times the annual revenue of 20 years, accounting for 7.5%. At present, it has become the company’s largest brand on tmall platform.
Investment suggestion: the company has a significantly differentiated multi brand matrix of high-end women’s wear. The growth of Shenzhen Ellassay Fashion Co.Ltd(603808) main brands is steady, and the cultivation of new brands has entered a good situation. The company’s revenue in 2021 is in line with expectations, and the growth rate of 21q4 revenue has increased month on month; The performance is slightly lower than expected, and the annual performance has not yet recovered to the 19-year level. Combined with this announcement, we lowered the company’s profit forecast. It is expected that the company’s earnings per share from 2021 to 2023 will be 0.87, 1.03 and 1.19 yuan respectively. The closing price on March 10 corresponds to about 12 times of the company’s PE (22e), maintaining the “buy-b” proposal.
Risk tips: 1 Macroeconomic uncertainty may slow down consumption growth; 2. Increase the cultivation of new brands, resulting in increased cost investment; 3. Overseas epidemic repeatedly affects terminal sales.
