\u3000\u3 China Vanke Co.Ltd(000002) 563 Zhejiang Semir Garment Co.Ltd(002563) )
Event: in 2021, the company realized an income of 15.42 billion yuan, an increase of 1.41% and a net profit attributable to the parent of 1.486 billion yuan, an increase of 84.50%, deducting non net profit of 1.354 billion yuan, an increase of 78.88%, EPS of 0.55 yuan and a dividend of 5.00 yuan (including tax) for every 10 shares. Excluding the impact of kidiliz brand sales, the company's revenue increased by 10.08% in 2021, the impact of covid-19 pneumonia weakened, the company's revenue resumed growth and profitability improved. In 2021q4, the company realized a revenue of 5.399 billion yuan, a decrease of 6.19%, a net profit attributable to the parent of 544 million yuan, a decrease of 7.82%, a deduction of 479 million yuan, a decrease of 24.28%, and the company's performance declined due to the spread of epidemic in some regions and the decline of clothing consumption prosperity.
Comments:
The growth of leisure clothing revenue is stable, and the children's clothing business is growing rapidly. 1) In 2021, the company's leisure clothing revenue was 5.027 billion yuan, an increase of 1.43% at the same time. At the end of the period, the number of stores was 2823, a decrease of 8.67% at the same time. The company continued to optimize the channel structure, focus on young users, improve the efficiency of offline stores, and expand Wuxi Online Offline Communication Information Technology Co.Ltd(300959) new retail business, with steady growth in revenue; 2) In 2021, the company's children's clothing revenue was 10.272 billion yuan, with a year-on-year increase of 1.38%. Excluding the impact of kidliz stripping in France, the year-on-year growth rate was 14.88%. At the end of the period, there were 5744 stores, with a year-on-year increase of 1.95%. The company's children's clothing business has obvious advantages. It further expanded the number of stores and made efforts to broadcast online channels to promote revenue growth.
The gross profit margin increased year-on-year, the expense rate decreased, and the preparation of winter goods increased. 1) In 2021, the gross profit margin of the company increased by 2.3pct to 42.6%, of which the gross profit margin of leisure clothing and children's clothing increased by 4.25pct, 1.30pct to 40.13% and 43.74%, the impact of the epidemic weakened, the terminal discount increased, and the gross profit margin increased year-on-year. In 2021q4, the gross profit margin of the company increased by 3.72 PCT to 41.53%. 2) In 2021, the company's sales, management, R & D and financial expense rates were 21.93%, 4.02%, 2.06% and - 0.67%, with the same increase of -0.10pct, -1.40pct, 0.14pct and -0.17pct. The company's revenue maintained growth, excluding the impact of kidiliz consolidation, and the expense rate decreased year-on-year during the period. 3) At the end of 2021, the company's inventory was 4.024 billion yuan, with a year-on-year increase of 60.88%, mainly due to the increase in the stock of products within one year and products in the next year.
Optimize the positioning of leisure wear and improve the level of brand operation. In 2021, the company made clear tiktok's brand positioning as "comfortable fashion", focusing on the Z generation of young people, expanding the platform of jitter, B station, etc., Wuxi Online Offline Communication Information Technology Co.Ltd(300959) global marketing to enhance brand awareness, 2021 Semir brand exposure nearly 3 billion people, social media positive comments increased significantly. Senma pays attention to the functionality and fashion of clothing products, creates co branded, IP and functional products, and launched C25 low-carbon concept products in 2021 to strengthen fabric technology. In terms of channels, SEMA will increase investment in 2021, upgrade store image, promote weekly retail plan, and improve the level of refined channel operation.
Upgrade the brand image of children's wear and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) make efforts to consolidate its leading position. In 2021 Balabala tiktok luxehome brand upgraded to "the most fashionable child fashion brand", and integrated Tmall Wuxi Online Offline Communication Information Technology Co.Ltd(300959) marketing resources with the jitter to upgrade the brand image. The children's wear business of the company strengthens the cooperation between internal and external fashion institutions and professional colleges, develops innovative fabrics and products, and highlights key categories. In terms of channels, barabarabara consolidated its traditional advantageous e-commerce platform, fully embraced the live track, improved the quality of offline stores, and conducted lean retail pilot in some regions to improve human efficiency and profit margin.
Profit forecast and investment rating: as the 2022q1 covid-19 pneumonia epidemic affects clothing sales, we lowered the company's EPS forecast from 2022 to 2023 to 0.57/0.71 yuan (the original value was 0.69/0.86 yuan), and predicted that the EPS in 2024 would be 0.82 yuan. At present, the stock price corresponds to 11.59 times PE in 22 years. At present, the company's valuation has been at a low level. The company continues to strengthen its leading edge in the casual wear and children's wear industry, and the trend of national trend will be more obvious in the future, The company has large business growth space and maintains the "buy" rating.
Risk factors: the impact of the epidemic exceeds the expected risk, the risk of intensified market competition, the risk of inventory impairment, etc.
