\u3000\u3 China Vanke Co.Ltd(000002) 563 Zhejiang Semir Garment Co.Ltd(002563) )
The company released the performance express for 2021. In 2021, the company achieved a revenue of 15.419 billion yuan, a year-on-year increase of 1.41%, and a net profit attributable to the parent company of 1.486 billion yuan, a year-on-year increase of 84.39%. We are optimistic about the long-term stable growth brought by the increase of the company’s children’s wear share and the stabilization of leisure business, and maintain the buy rating.
Key points supporting rating
Q4 retail fluctuated in a single quarter, which did not change the company’s fundamentals and continued to improve. In 2021, under the background of the gradual stabilization of off-line retail in the post epidemic cycle, the company continued to promote product upgrading and channel reform, achieved an annual revenue of 15.419 billion yuan, a year-on-year increase of 1.41%, and the net profit attributable to the parent company was 1.486 billion yuan, a year-on-year increase of 84.39%. Excluding the impact of kidiliz’s consolidated loss in the same period of last year, the net profit in 2021 was 1.302 billion yuan, with a year-on-year increase of 14.06%. Q4 company achieved a revenue of 5.399 billion yuan in a single quarter, a year-on-year decrease of 6.37%, and the net profit attributable to the parent company was 543 million yuan, a year-on-year decrease of 7.97%. The fluctuation of Q4 revenue end of the company was mainly affected by the recurrence of the epidemic in some areas and the warmer weather. In the future, with the consolidation of the advantages of the company’s children’s wear business and the remarkable adjustment of leisure business, it is expected to show an improvement trend in the long term.
The children’s wear business will develop steadily in 2021, and there is still room for improvement in the market share in the future. At present, the market share of balabalabala brand children’s wear of the company ranks first, and the leading position is stable. In the future, the company will deepen internal incubation, agency and other ways to bring multiple brands into the children’s clothing brand group, multi-dimensional coverage of brands and expand the brand matrix. At the same time, Balabala brand is expected to further expand the overseas market, continue to add expansion territory, and further consolidate the leading advantage of children’s clothing.
The casual wear business will deepen the adjustment and look forward to the bottom recovery in the future. At the same time, for the leisure clothing business, the company strengthened brand communication, accelerated the digital transformation of leisure business, promoted the online business of stores, and launched the operation mode of physical stores + online cloud stores; Expand the live broadcast consumption platform, optimize the channel structure and capture emerging channel opportunities; We will continue to strengthen digital investment in commodity research and development, capture market trends, and still have growth potential in the future.
Valuation
Considering that the company’s business adjustment and upgrading are still advancing after the epidemic, the earnings per share from 2021 to 2023 are reduced to 0.55 yuan, 0.63 yuan and 0.70 yuan respectively (originally predicted to be 0.565 yuan, 0.676 yuan and 0.789 yuan); The P / E ratio was 12 times, 11 times and 10 times respectively, maintaining the buy rating.
Main risks of rating
The channel expansion was less than expected, the recovery of consumption after the epidemic was less than expected, and the sales of new products were less than expected.
