\u3000\u3 China Vanke Co.Ltd(000002) 832 Biem.L.Fdlkk Garment Co.Ltd(002832) )
In 2021, the company’s revenue and net profit attributable to the parent company were + 18.09% and + 25.20% year-on-year respectively
In 2021, the company achieved an operating revenue of 2.720 billion yuan, a year-on-year increase of 18.09%, a net profit attributable to the parent of 625 million yuan, a year-on-year increase of 25.20%, exceeding the expectation, deducting 580 million yuan of net profit not attributable to the parent, a year-on-year increase of 25.26%, eps1 15 yuan, with a proposed dividend of 0.30 yuan per share (including tax). The growth rate of net profit exceeded that of revenue, which mainly contributed to the improvement of gross profit margin. 21q1 ~ Q4 company’s single quarter revenue increased by 48.47%, 23.65%, 11.70% and 2.97% year-on-year respectively, and the net profit attributable to the parent company increased by 55.09%, 47.69%, 14.04% and 10.20% year-on-year respectively. 22q1 company’s operating revenue was 810 million yuan, a year-on-year increase of 30.16%, and the net profit attributable to the parent company was 213 million yuan, a year-on-year increase of 41.29%.
The revenue of all channels has achieved beautiful growth, and the growth rate of offline net stores has exceeded 12%
1) from the perspective of different channels, the company’s revenue from e-commerce, direct marketing and franchise in the past 21 years accounted for 4.51%, 70.37% and 25.12% respectively, and the revenue was + 24.76%, + 17.52% and + 18.58% year-on-year respectively.
2) in terms of offline stores, the company had 1100 terminal sales stores at the end of the year, a net increase of 121 (+ 12.36%) compared with the beginning of the year, including 532 Direct stores (+ 9.47%) and 568 franchise stores (+ 15.21%); It can be estimated that the average efficiency of Direct stores and franchisees in the next 21 years increased by 7% and 3% respectively year-on-year. Then split according to the area X average efficiency, the area of the company’s Direct stores and franchise stores increased by 4% and 29% respectively in 21 years, and the estimated average efficiency was + 13% and – 8% respectively. The gross profit margin increased, the expense rate was basically flat, the inventory turnover was accelerated, and the cash flow was healthy. The gross profit margin was 76.69% in 21 years, an increase of 2.80pct year-on-year. Among them, the gross profit margins of e-commerce, direct operation and franchise were 50.93%, 81.11% and 68.90% respectively, with a year-on-year increase of + 13.34, + 2.85 and + 1.21pct respectively. Among them, the gross profit margin of e-commerce business increased significantly.
The gross profit margins of companies from 21q1 to 22q1 were 76.56%, 76.09%, 73.74%, 80.23% and 75.49% respectively, with a year-on-year increase of + 10.78, + 2.60, + 0.81, + 0.54 and -1.07pct respectively.
Expense rate: the expense rate during the 21-year period was 47.89%, with a year-on-year increase of 0.46pct; Among them, the rates of sales, management, R & D and financial expenses are 38.27% (- 0.16pct), 5.75% (- 0.01pct), 3.07% (+ 0.25pct) and 0.80% (+ 0.38pct) respectively. The increase in financial expenses was mainly due to the implementation of the new lease standards in 21 years and the interest expense of new lease liabilities.
Quarter by quarter, the expense rates of 21q1 ~ Q4 companies in a single quarter were + 6.12, + 2.27, -4.01, + 0.11pct year-on-year respectively. The significant increase of expense rate during 21q1 ~ Q2 is mainly due to the increase of sales expense rate. The expense rate of 22q1 company during the period was 42.72%, a year-on-year decrease of 3.37pct, of which the expense rates of sales, management, R & D and finance were -2.24, -0.53, + 0.35 and -0.94pct respectively year-on-year. The increase of R & D expenses is mainly due to the increase of R & D investment in 22q1; The decrease in financial expenses was mainly due to the increase in interest on time deposits.
Other financial indicators: 1) the inventory increased by 8.65% to 660 million yuan at the end of 21 compared with the beginning of 21, decreased by 1.01% at the end of March 22 compared with the end of 21, and increased by 15.34% year-on-year in 21q1. The inventory turnover days of year 21 and 22q1 were 360 days and 298 days respectively, with a year-on-year increase of – 24 days and – 64 days respectively. According to the stock age structure, the proportion of 21-year inventory within 1 year, 1 ~ 2 years, 2 ~ 3 years and more than 3 years is 58.85% (+ 8.91pct), 23.50% (- 5.35pct), 13.29% (- 6.61pct) and 4.36% (+ 3.05pct), respectively. The inventory structure is healthy.
2) accounts receivable decreased by 7.09% to 280 million yuan at the end of 21 compared with the beginning of 21, decreased by 13.62% at the end of March 22 compared with the end of 21, and decreased by 14.16% year-on-year in 21q1. The turnover days of accounts receivable in year 21 and 22q1 were 38 days and 29 days respectively, with a year-on-year increase of + 4 days and – 13 days respectively.
3) the impairment loss of assets increased by 62.38% year-on-year to 78.68 million yuan in 21 years, mainly for the provision for inventory falling price. 22q1 asset impairment loss increased by 69.56% year-on-year to 11.69 million yuan.
4) the net cash flow from operating activities increased by 40.93% year-on-year to RMB 898 million in 21 years, and the net cash flow from 22q1 increased by 27.38% year-on-year to RMB 467 million.
In the first quarter of 21 and 22, both achieved beautiful growth, and continued to make rapid progress in 22 years
The company is positioned in high-end fashion sportswear, high-quality card position and subdivided track. In the 21st year, the Biem.L.Fdlkk Garment Co.Ltd(002832) brand continued its cross-border cooperation with the palace culture IP of the Forbidden City, performed the high-end national trend, and cooperated with the French palace level designer SAFA Sahin to launch the co branded daddy shoes; Venice Carnival brand launched a joint brand series with Snoopy. It will continue to cooperate with Snoopy for 22 years, and will increase the joint brand series of Japan’s famous IP Doraemon. In terms of channel, 21 years in November, the company completed the Biem.L.Fdlkk Garment Co.Ltd(002832) and Venice Carnival brand’s tiktok shop, and now has formed the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) full channel layout. In terms of marketing, in 21 years, the company built the second generation five-star robe for the Chinese national golf team, helped the Tokyo Olympic Games, and has agreed to continue to sponsor the 2024 Paris Olympic Games.
Looking forward to 2022, the company will carry out strategic upgrading, focus on the core category – T-shirt, and upgrade Biem.L.Fdlkk Garment Co.Ltd(002832) brand from “golf first Lenovo brand” to “T-shirt first Lenovo brand”, so as to further open up market space; The Biem.L.Fdlkk Garment Co.Ltd(002832) golf series will be opened and operated independently, and the series will be subdivided into fashion and professional golf series to position high-end fashion sports and consolidate the position of Biem.L.Fdlkk Garment Co.Ltd(002832) No. 1 golf clothing brand; Focus on the two platforms of wechat and xiaohongshu, continuously cultivate young consumers through advertising and KOL cooperation, open the brand endorsement matrix, establish a young spokesperson echelon, and improve brand awareness and influence. At the end of March 22, the company had only monetary capital + trading financial assets of more than 2 billion yuan, abundant cash and strong anti risk ability, which can also provide sufficient financial support for future brand expansion.
The company’s sports fashion and leisure track has a clear positioning, unique characteristics and high customer stickiness. It benefits from the improvement of sports and fitness penetration and the endogenous extension of two wheel drive to promote long-term growth. Considering that the company’s performance in 21 years was better than expected, we raised the company’s profit forecast for 22-23 years (net profit + 3% and + 7% compared with the previous profit forecast). Calculated according to the latest equity, the corresponding EPS for 22-23 years were 1.41 and 1.77 yuan respectively, the new 24-year profit forecast and corresponding EPS for 24 years were 2.12 yuan, and the PE for 22 and 23 years were 16 and 13 times respectively, maintaining the “buy” rating.
Risk tip: the impact of the epidemic exceeded expectations, resulting in weak terminal consumption, overstock of inventories, intensified industry competition and improper cost control.
