DEA shares (301177)
The world's second largest diamond consumer market, competition is scattered, and the leader has not yet been formed. According to Bain consulting, it is estimated that the global diamond retail sales will be about 84 billion US dollars in 21 years, and China is the second largest diamond consumer country, accounting for about 10%. The pattern of China's jewelry market is relatively scattered, and the head brands have not yet formed a leader. In 20 years, the Cr5 / CR10 is only 21.0% / 24.9%. Compared with the Hong Kong market with similar consumption structure, there is still great room to improve the concentration of China's jewelry industry, and cutting-edge brands are expected to stand out.
Core advantages: unique brand concept + efficient store operation + clear store expansion logic + marketing diversion fission. DEA set the purchase rule that "men can only customize one diamond proposal ring in their life" to effectively improve the brand differentiation, and its market share in marriage and love increased from 1.18% in 2018 to 6.47% in 2021h1; Since 2018, the company has greatly expanded offline stores. After the monthly store efficiency declined in the early climbing stage, the company timely adjusted its strategy, focused on improving quality and efficiency, significantly improved the floor efficiency in June 20, and the logic of expanding stores in the future is clear; The company has further enhanced its brand influence through star stories, cross-border IP co branding and other means. The voice of major social media platforms is far ahead. At the same time, a considerable number of Dr fans "show their love" in microblog, wechat circle of friends and other channels, bringing fission effect to the company's brand communication.
Lessons from the development of Blue Nile: brand = innovation + characteristics + change. At the beginning of the 21st century, Blue Nile was born in the bath of American e-commerce dividends. With its characteristics, it became a blockbuster in the American market, subverted the whole jewelry industry, and is still followed by many brands today. The development of Blue Nile in the United States once again proves that relatively small non top brands can also occupy a place in the jewelry industry with their characteristics. We believe that this conclusion is also applicable to the Chinese market. As a relatively small cutting-edge brand, Dr is expected to shine in the Chinese jewelry market with its unique concept.
Investment suggestion: the company focuses on the wedding ring Market and has a unique product concept. It is estimated that the EPS in 21 ~ 23 years will be 3.25/4.13/5.52 yuan / share respectively. With reference to the valuation of comparable companies in the industry, the company is given a 22-year 25xpe, the target price is 103.28 yuan, and a "buy" rating is given for the first coverage.
Risk warning: industry competition intensifies; Outsourcing production risk; The demand for love and marriage accessories decreased.
