\u3000\u3 China Vanke Co.Ltd(000002) 832 Biem.L.Fdlkk Garment Co.Ltd(002832) )
On April 15, 2022, the company released the annual report and the first quarter report of 2021. In 2021, the company achieved a revenue of 2.72 billion yuan, a year-on-year increase of 18.09%, and the net profit attributable to the parent company was 625 million yuan, a year-on-year increase of 25.20%. In 2022, Q1 company achieved a revenue of 810 million yuan, a year-on-year increase of 30.16%, and a net profit attributable to the parent company of 213 million yuan, a year-on-year increase of 41.29%. The company is expected to maintain high growth and buy rating.
Key points supporting rating
The brand strength of 2021 has been significantly improved, the annual performance is excellent, the online is bright, and the high growth continues in 2022q1. In 2021, the company Wuxi Online Offline Communication Information Technology Co.Ltd(300959) made great efforts and achieved revenue of 2.72 billion yuan, with a year-on-year increase of 18.09%. Offline, store expansion boosted revenue by 2.597 billion yuan, a year-on-year increase of 16.84%. The company continued to expand the number of stores, with a net increase of 121 stores in 2021 (75 / 46 franchise / direct sales respectively) to 1100. The upgrading of brand image and services increased the revenue of single store by 4.83% to 2.3613 million yuan, and the endogenous growth is expected to be further enhanced in the future. Online, the company actively deployed multiple platforms and achieved good results, driving the rapid growth of revenue by 24.76% to 123 million yuan. In Q1 2022, under the background of fluctuations in the retail environment, the company achieved a revenue of 810 million yuan, a year-on-year high-speed increase of 30.16%, a net profit of 213 million yuan, a year-on-year increase of 41.29%, and the light luxury brand image was further strengthened. Under the background of repeated outbreaks in March 2022, it still maintained rapid growth, highlighting the competitive advantage brought by the continuous enhancement of the company’s brand strength and the increase of consumer recognition.
The upgrading of product structure led to the growth of profitability, the improvement of inventory turnover efficiency and the significant growth of cash flow. In 2021, the company paid attention to the upgrading of product structure and continuously launched competitive new products. The product price moved upward, which significantly increased the gross profit margin by 2.81 PCT to 76.69% and the net profit margin by 1.30 PCT to 22.96%. The competitive advantage of 2022q1’s products was further consolidated, and the net profit margin increased significantly by 2.07pct to 26.24%. The company strengthened its supply chain management capability, continuously optimized the inventory turnover efficiency, and reduced the inventory turnover days by 85 to 298 days. The operating cash flow increased by 27.38% to 467 million yuan, with excellent operation quality.
As the leader of high-end sports fashion clothing, the company is expected to continuously improve the brand power and further open the profit space through the adjustment of products and channels in the future. Starting from its own category advantages, open the development strategy of guiding the brand by category, and further open the market space. Adhere to the brand positioning of light luxury, multi-channel layout, cultivate young consumers and enhance brand influence.
Valuation
Under the current share capital, the earnings per share from 2022 to 2024 are expected to be 1.413 yuan, 1.774 yuan and 2.155 yuan respectively; The P / E ratio was 16 times, 13 times and 10 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.
