\u3000\u3 China Vanke Co.Ltd(000002) 832 Biem.L.Fdlkk Garment Co.Ltd(002832) )
Key investment points:
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the operating revenue was 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 2022q1, the operating revenue was 810 million yuan, with a year-on-year increase of 30.16%, and the net profit attributable to the parent company was 213 million yuan, with a year-on-year increase of 41.29%, which was mainly driven by the company's continuous R & D investment, product innovation, brand strength improvement, marketing network upgrading, strengthened supply chain management and accelerated store opening.
Channel power: offline + digital new retail. From the perspective of different channels, the direct / franchise / online operating revenue in 2021 increased by 17.52% / 18.58% / 24.76% year-on-year respectively, and the proportion of revenue was 70.37% / 25.12% / 4.51% respectively. From the perspective of offline channels, the number of direct / franchise stores is 532 / 568 respectively, the net expansion stores are 46 / 75 respectively, and the store efficiency is 2.6/1.2 million yuan respectively. At the same time, the number of Aolai stores of the company has also increased steadily year by year. As the main digestion channel of the company's inventory, Aolai store has strong digestion ability. Therefore, generally, the inventory with a stock age of less than two years can be digested better. The discount of Aolai store is concentrated at 40-60%, and there is still a large profit space.
Product strength: adhere to high R & D investment, pay attention to design innovation and create high quality. 1) R & D Investment: the proportion of R & D investment of the company in 2021 and 2022q1 is 3.07% / 3.12% respectively, maintaining a high proportion of R & D investment; 2) Fabric: integrate international high-quality fabric resources and strictly select high-performance and high-grade fabrics, such as diamond fiber fabrics and antibacterial fiber fabrics; 3) Design: strengthen IP co branding, deepen cross-border co branding with palace culture IP of the Forbidden City, and launch a variety of CO branded clothing; Cooperate with international top designers to launch co branded daddy shoes; It has cultivated its own design team. The design department of the company designs more than 1000 products every year and has strong R & D and design ability.
Brand strength: differentiated positioning, high-quality segment tracks, and precision marketing to enhance brand influence. 1) Discount rate: in 2021, the growth rate of clothing sales and sales was 2.09% and 18.09% respectively. The growth rate of sales was significantly higher than that of sales. We expect that the control of discount rate in 2021 will greatly drive the performance, and the control of discount rate will also help maintain the brand strength; 2) Precision marketing: in 2021, the company will open the "era of big communication". At the same time of event communication, entertainment marketing, event promotion and public welfare activities, the company will open CCTV-1 and high-speed rail advertising communication to accelerate the improvement of brand influence.
Profitability: continuous improvement. The gross profit margin / net profit margin in 2021 was 76.69% / 22.96% respectively, with a year-on-year increase of + 2.81/0.46pct respectively, mainly due to the improvement of discount rate; The gross profit margin / net profit margin of 2022q1 was 75.49% / 26.24% respectively, with a year-on-year increase of -1.07 / + 2.06pct respectively. The increase of net profit margin was mainly due to the decrease of expense rate.
Investment suggestion: the company's high-quality subdivision track has excellent innovation and design ability, and strong product force drives the improvement of user stickiness. When the offline channel is greatly affected by the epidemic, it still achieves high growth against the trend, which can be expected in the future. It is estimated that the company will realize an operating revenue of RMB 3.400, 4.182 and 5.018 billion from 2022 to 2024, a net profit attributable to the parent of RMB 823, 1.042 and 1.307 billion, and EPS of RMB 144, 1.83 and 2.29 per share respectively. The company will be given 20-23 times PE in 2022, and the corresponding reasonable price range is RMB 28.80-33.12, maintaining the "recommended" rating.
Risk tip: the epidemic has repeatedly affected terminal retail and intensified industry competition
