In 2022q1, LVMH group achieved a revenue of 18.003 billion euros / yoy + 28.97%, which was clearly boosted by the rise in product prices and the recovery of consumption in Europe and the United States. 1) By Region: in the first quarter, LVMH’s revenue growth in the United States, Japan and Europe reached 26% / 30% / 45% respectively. However, in Asia (except Japan), where the revenue doubled in the first quarter of last year, the revenue increased by only 8% in this quarter. In addition to the impact of the high base in the same period of last year, the change of the epidemic situation had an impact on luxury sales. Asia remains the largest share of LVMH’s cake, with Asia excluding Japan accounting for 37% of its revenue. 2) By category: except for wine and spirits, other categories have double-digit income growth rate. The core fashion and leather business achieved a revenue of 9.1 billion euros / yoy + 30%, of which Louis Vuitton has always maintained high creativity and is committed to developing high-quality technology; Maison opened two new precious leather workshops in France; Fendi grew steadily, and Celine benefited from the great success of the garment and leather goods production line and achieved very good results. The retail revenue of watches and jewelry / perfume / cosmetics / wine and spirits reached 30/23/19/16 billion euros, yoy +24%/+19%/+17%/+2% respectively.
Hermes international achieved revenue of € 2.765 billion / yoy + 32.7% in 2022q1. Strong growth in the US and Europe. 1) look at the category: the most important leather bag Department has been on the rebound since last year’s Q4 decline. The total sales volume was 1 billion 197 million euro /yoy+21.1%, and the clothing and accessories Department earned 710 million euros /yoy+50.1%, and the perfume and beauty / silk and textile / watch Department achieved a total of 1.19/1.98/1.34 billion euros, respectively. In addition, other sectors where household products are located have achieved revenue of 330 million euros / yoy + 44.4%. 2) By Region: in 2022q1, all regions of Hermes achieved strong growth in revenue, among which Asia (except Japan) / Japan / America / Europe (except France) / France achieved sales of 14.47/2.77/4.49/3.27/214 million euros, yoy + 28% / + 15% / + 54% / + 44% / + 40%.
In March 2022, India’s imports of cultivated drilling blanks increased sharply, and the export transformation is worth looking forward to. Blank import: the import volume was US $203 million, with a year-on-year increase of + 157.1% and a month on month increase of + 31.0%; The import penetration rate was 9.1%, with a year-on-year increase of + 3.7pct. Export of bare diamonds: the export volume was 137 million US dollars, with a year-on-year increase of + 59.5% and a month on month increase of + 8.9%; The export penetration rate was 5.9%, with a year-on-year increase of + 2.0pct.
Investment suggestion: by observing the Q1 performance of the two major overseas luxury groups, we believe that the consumption of related attributes is expected to rebound rapidly in the future as the epidemic eases. Recommend Imeik Technology Development Co.Ltd(300896) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) , Proya Cosmetics Co.Ltd(603605) , and pay attention to Shanghai Jahwa United Co.Ltd(600315) , Lushang Health Industry Development Co.Ltd(600223) . The implementation of monitoring and management measures is beneficial to the upstream “leaders” Nanjing Cosmos Chemical Co.Ltd(300856) , Jahen Household Products Co.Ltd(300955) . The mood of cultivating diamond sector is gradually warming up, and “leading” enterprises have layout opportunities. Continue to recommend Henan Liliang Diamond Co.Ltd(301071) , North Industries Group Red Arrow Co.Ltd(000519) , and suggest paying attention to Henan Huanghe Whirlwind Co.Ltd(600172) , Sf Diamond Co.Ltd(300179) , Beijing Worldia Diamond Tools Co.Ltd(688028) and Sinomach Precision Industry Co.Ltd(002046) . Optimistic about the prosperity of gold and jewelry sector, it is recommended to pay attention to Chow Tai Seng Jewellery Company Limited(002867) , Chow Tai Fook, Guangdong Chj Industry Co.Ltd(002345) and Mclon Jewellery Co.Ltd(300945) .
Risk tip: the overall consumer demand is weak and the industry competition intensifies.
