\u3000\u3 Shengda Resources Co.Ltd(000603) 808 Shenzhen Ellassay Fashion Co.Ltd(603808) )
The company released the announcement of main operating data in 2021. In 2021, the company achieved revenue of about 2.3 ~ 2.4 billion yuan, a year-on-year increase of about 17.22% ~ 22.32%, and the net profit attributable to the parent company was about 310 ~ 330 million yuan, a year-on-year decrease of about 25.84% ~ 30.34%. We are optimistic about the long-term stable growth brought by the value improvement of the company's international multi brand matrix and maintain the buy rating.
Key points supporting rating
The annual growth in 2021 was relatively stable, and Q4 performed well. In 2021, the company continued to improve the operation quality of multi brand offline channels and deepened the layout of online channels. The company achieved a revenue of about 2.3 ~ 2.4 billion yuan, a year-on-year increase of about 17.22% ~ 22.32%, and a net profit attributable to the parent company of about 310 ~ 330 million yuan, a year-on-year decrease of about 25.84% ~ 30.34%. The fluctuation of net profit is mainly affected by the increase of net profit caused by the disposal of some equity of baiqiu network in 2020. Q4 under the background of repeated epidemic in some areas, the overall operation of the company is still relatively stable. The revenue in a single quarter is about 627 ~ 727 million yuan, with a year-on-year increase of about 1.86% ~ 18.10%, reflecting the advantages of coordinated development of multiple brands.
In 2021, the multi brand matrix was well cultivated and the new brands performed brilliantly. Driven by direct sales and e-commerce channels, the revenue of the main brand Ellassay increased by 9% year-on-year, and the overall performance was stable. New brands achieved rapid growth, with Laur è L, ed hardy and self portal increasing by about 68%, 43% and 432% respectively. Ed Hardy actively develops the business platform with vibrant voice and achieves excellent results, and brand revenue has rebounded tiktok. Self portal stores expanded, with excellent single store, and tmall's sales scale exceeded that of the main brand; The number of Laur è l brand stores continues to expand and store efficiency is improved. It is expected to continue high growth in the future.
The medium and long-term brand growth matrix can be built. The company has built a diversified brand matrix, and the offline retail end of multiple brands performed well from January to February 2022. In the medium and long term, the company's highly competitive business system superimposes the strategic objectives of multi brand and multi category collectivization, which is expected to continuously improve the company's comprehensive competitiveness.
Valuation
At present, the company's performance fluctuates due to short-term factors such as local epidemic and weather, but the multi brand matrix of the company still has good potential in the medium and long term. The earnings per share from 2021 to 2023 were reduced to 0.87 yuan, 1.02 yuan and 1.21 yuan respectively (the original forecast was 0.93 yuan, 1.16 yuan and 1.40 yuan); The price earnings ratio was 14 times, 12 times and 10 times respectively, maintaining the buy rating.
Main risks of rating
The promotion of new brands was not as expected, and the epidemic situation in China and overseas was repeated.
