\u3000\u3 China Vanke Co.Ltd(000002) 563 Zhejiang Semir Garment Co.Ltd(002563) )
The company released its annual report for 2021 on March 30, 2022. In 2021, the company realized 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
In 2021, the business developed steadily and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels continued to be optimized. The annual revenue was 15.419 billion yuan, an increase of 1.41% and the net profit was 1.486 billion yuan, an increase of 84.39%. Excluding the impact of kidliz's consolidated statement loss last year, the net profit in 2020 was 1.302 billion yuan, an increase of 14.06% in comparable terms. In terms of products, the annual income of leisure clothing was 5.027 billion yuan, an increase of 1.43%, basically stable; The positioning of children's clothing brand was upgraded, and the annual revenue was 10.272 billion yuan, an increase of 1.38% (excluding the impact of kidliz, an increase of 14.88%). The growth is expected to accelerate after stripping kidliz business. In terms of channels, the company increased its investment in online multi platforms, with an annual revenue of 6.458 billion yuan, an increase of 11.18% (excluding the impact of kidliz, an increase of 13.06%), with a good growth momentum; Offline improved quality and efficiency, adjusted the closure of inefficient stores, and closed 158 to 8567 stores (including 2823 adults and 5744 children), with an annual revenue of 8.841 billion yuan, a year-on-year decrease of 4.73% (excluding the impact of kidliz, an increase of 8.01%). The company's adult leisure business channel structure continues to be optimized, and the prosperity of children's clothing industry is expected to further boost the company's revenue.
Product upgrading and business structure optimization drive the growth of profitability, cost improvement and stock age structure optimization. The gross profit margin and net profit margin increased by 2.28pct/4.34% to 42.56% / 9.64% respectively, mainly due to the optimization of the company's business structure and the upgrading of product design. The management fee rate decreased by 1.39 PCT to 4.03%, and the effect of fee control was good. The proportion of inventories within one year of stock age increased by 6.26pct to 83.74%, and the stock age structure was optimized.
Children's wear and adult leisure go hand in hand, and we are optimistic about the long-term development of the company. At present, the company's barabara brand children's wear market share ranks first, and continues to expand the brand matrix. At the same time, for leisure clothing business, strengthen brand communication and accelerate the digital transformation of leisure business. In the future, as the leading advantage of children's wear is further consolidated, the growth potential of leisure business is released, and the long-term growth of the company's income can be expected.
Valuation
Under the current share capital, the earnings per share from 2022 to 2024 are expected to be 0.66 yuan, 0.75 yuan and 0.84 yuan respectively; The P / E ratio was 10 times, 9 times and 8 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.
