\u3000\u3 Shengda Resources Co.Ltd(000603) 877 Ningbo Peacebird Fashion Co.Ltd(603877) )
In 2021, the income was 10.921 billion yuan, an increase of 16.3% and the proportion of cash dividends was 42.2%
According to the annual report released by the company, the revenue in 2021 was 10.921 billion yuan, an increase of 16.3% at the same time, mainly due to the rapid growth of direct sales, franchise and online channel retail. The revenue and growth rate of 21q1-4 were 2.670 billion (+ 93.1%), 2.345 billion (+ 27.8%), 2.394 billion (+ 3.9%) and 3.512 billion (- 9.2%) respectively.
The net profit attributable to the parent company was 677 million yuan, a decrease of 5.0%, mainly due to the decline of 21q4 retail performance and the increase of expenses. Among them, the net profit attributable to the parent company and the growth rate of 21q1-4 were 203 million (+ 222.2.3%), 208 million (+ 85.5%), 143 million (- 24.7%) and 123 million (- 69.3%) respectively.
The company’s profit distribution plan for 2021 is to distribute a cash dividend of 6 yuan (including tax) to all shareholders for every 10 shares, with a total cash dividend of 286 million yuan (including tax), and the proportion of cash dividend is 42.2%.
Revenue: offline alliance with the increase of 23.6% leading, online tiktok contribution 20% electricity retail
By channel, the offline channels achieved a total revenue of 7.467 billion yuan (68.9% of the total) in 2021, an increase of 17.0%. Of which, 4.614 billion yuan was directly operated (61.8% below the line), an increase of 13.2% at the same time; The franchise was 2.853 billion yuan (38.2% below the line), an increase of 23.6% at the same time. The revenue from online channels reached 3.364 billion yuan (accounting for 31.1%) with an increase of 19.9%. In 2021, the company made a significant breakthrough in tiktok channel, contributing about 20% of the retail sales of electric power.
The company continues to optimize the channel structure and improve the operation quality. By the end of 2021, the company had 5214 offline stores, an increase of 598 compared with the end of 20, including 62 direct channel net expansion stores and 536 franchise channel net expansion stores, the best annual franchise net expansion store since listing.
By brand, in 2021, the revenue of peacebird women’s wear was 4.484 billion yuan (accounting for 41.1%) with an increase of 18.6%; Peacebird men’s clothing revenue was 3.37 billion yuan (accounting for 30.9% of the total), an increase of 19.0% at the same time; Ledin girls’ clothing revenue was 1.398 billion yuan (accounting for 12.8% of the total), an increase of 5.2% at the same time; Minipeace children’s clothing revenue was 1.274 billion yuan (accounting for 11.7%) with an increase of 29.5%.
The gross profit margin in 21 years increased by 0.4pct at the same time of 52.9%, of which the online gross profit margin increased by 1.9pct at the same time
In 2021, the gross profit margin of the company’s sales increased by 0.4pct to 52.9% year-on-year; The company’s sales expense rate, management expense rate, R & D expense rate and financial expense rate are 36.2% (+ 1.3pct), 6.5% (+ 0.4pct), 1.4% (+ 0.2pct) and 0.6% (+ 0.4pct) respectively. The net interest rate attributable to the parent decreased by 1.4pct to 6.2% year-on-year.
Adjust the profit forecast and give a buy rating
Considering that the company’s retail is under pressure in the short term due to the epidemic and temperature, but in the long term, with the optimization of offline channels, the profitability is expected to improve steadily; In addition, under the background of digital empowerment, the operation efficiency is expected to continue to improve after the value links of accurate design, demand perception, flexible supply and scenario marketing are opened. We appropriately adjust the profit forecast. It is estimated that the EPS in 202224 will be 1.78, 2.31 and 2.73 yuan / share respectively (the original values are 2.2, 2.6 and 3.2 yuan / share respectively), and the PE will be 11.4, 8.8 and 7.5 times respectively.
Risk tip: the epidemic repeatedly affects the passenger flow and sales of stores; Intensified brand competition; Failure to accurately grasp the changes of market trends; Macroeconomic fluctuations and other risks.
