\u3000\u3 Shengda Resources Co.Ltd(000603) 808 Shenzhen Ellassay Fashion Co.Ltd(603808) )
In 21 years, the main business income was 2.343 billion yuan, with an increase of 23.7%, and the net profit deducted from non parent company increased by 36.7% ~ 47.2%
The company expects that the revenue in 2021 will be about 2.3 ~ 2.4 billion yuan, an increase of 17.2% ~ 22.3% at the same time, and the revenue of its main business in 21 years will be 2.343 billion yuan, an increase of 23.7%, of which the revenue of 21q4 will be 692 million yuan, an increase of about 12.6% at the same time. The growth rate is improved compared with Q3 month on month. The growth of its main business is mainly due to the good results achieved in the cultivation of the company’s international multi brand matrix and the gradual liberalization of overseas epidemic control measures.
The net profit attributable to the parent company in 21 years was about 310330 million yuan, with a decrease of 25.8% ~ 30.3%, which was mainly due to the one-time income of 298 million yuan obtained from the transfer of part of the equity of the subsidiary baiqiu network in 2020, with a high base; Excluding the impact of non recurring profits and losses such as equity transfer, the net profit deducted from non parent company was about 260 ~ 280 million yuan, an increase of 36.7% ~ 47.2% at the same time, and the profitability recovered significantly.
The main brand Ellassay grew steadily, and many brands entered a good growth period
By brand, the main brand Ellassay had a revenue of 1.022 billion yuan in 21 years, an increase of 8.9%, accounting for 43.6% of the main business, and a revenue of 332 million yuan in 21q4, an increase of about 3.5%. Brand direct marketing channels continued to develop steadily, the number of stores increased, and the franchise channels recovered significantly; Simultaneous development of multiple e-commerce platforms,
21 years vip.com and tiktok platform has a breakthrough.
Laurel’s revenue in 21 years was 246 million yuan, an increase of 68.2%, accounting for 10.5%. The revenue of 21q4 was 82 million yuan, an increase of about 52.5%; The brand expansion was active and effective, the number of stores continued to expand, and the same store sales increased.
The income of ED hardy and ed hardy X in 21 years was 307 million yuan, an increase of 42.8%, accounting for 13.1%, and the income of 21q4 was 84 million yuan, an increase of about 61.8%. Revenue has rebounded markedly, mainly due to the continued development of brands in Hong Kong and Macao, and the tiktok based e-commerce platform has been actively developed and achieved results.
The revenue of IRO Paris in the 21st year was 593 million yuan, an increase of 9.3%, accounting for 25.3%, and the revenue of 21q4 was 141 million yuan, a decrease of about 4.5%. 21h1 brand was greatly affected by the European epidemic control measures, but H2 recovered significantly. The number of Direct stores in China increased synchronously with the same store sales, and the brand scale made another breakthrough.
Self portal’s 21-year revenue was 175 million yuan, an increase of 432.6%, accounting for 7.5%, and 21q4 revenue was 53 million yuan, an increase of about 142.0%. Phenomenal growth of brand continuation, accelerated expansion of stores and excellent performance of single stores; At the same time, the brand uses social media to drain and the online platform continues to develop at a high speed. It has become the company’s largest brand on tmall platform at present.
The scale and quality of channels are improving simultaneously, increasing marketing investment and comprehensively improving the brand voice
Channel, marketing and other aspects of operation continued to be optimized. Channel end: offline stores have been continuously expanded and adjusted, and the number of stores of multiple brands has maintained growth and store efficiency has been improved in 21 years; Online, the company independently built a live broadcast operation platform and marketing team to achieve a comprehensive breakthrough in the public and private domains. Marketing side: pay attention to social media to create a content matrix, increase the investment of customers in all areas, including xiaohongshu and offline flash stores, and increase brand investment. For example, the main brand recently announced that the famous actor Jin Chen was appointed as the brand spokesperson to enhance the brand impression and improve the voice.
Adjust the profit forecast and maintain the buy rating.
Focusing on the operation of high-end fashion brands, the company has achieved good results in the cultivation of international multi brands in the past 21 years, the main brand Shenzhen Ellassay Fashion Co.Ltd(603808) has grown steadily, laurel and self portal have grown rapidly, Ed Hardy’s income has rebounded, and iro is expected to continue to improve. We estimate that the company’s revenue in 21-23 years will be 2.36 billion yuan, 2.75 billion yuan and 3.16 billion yuan respectively, the net profit attributable to the parent company will be 320 million yuan, 430 million yuan and 500 million yuan respectively, the corresponding EPS will be 0.9, 1.2 and 1.4 yuan / share respectively, and the corresponding PE will be 14.4x, 10.8x and 9.3x respectively.
Risk tip: the risk of products being counterfeited and illegal online shopping; Marketing risks caused by the rapid expansion of new marketing channels such as e-commerce; The risk of not accurately grasping the fashion trend, etc. The operating data is only the preliminary accounting results. Please refer to the disclosure of the annual report for details.
