\u3000\u3 China Vanke Co.Ltd(000002) 832 Biem.L.Fdlkk Garment Co.Ltd(002832) )
Key investment points
Performance summary: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved a revenue of 2.72 billion yuan, a year-on-year increase of 18.1%; The net profit attributable to the parent company was 620 million yuan, a year-on-year increase of 25.2%. Among them, Q4 revenue and growth rate were 750 million yuan, an increase of 3%, and net profit was 170 million yuan, an increase of 10.2%; 22q1 achieved a revenue of 810 million yuan, an increase of 30.2%, and a net profit of 210 million yuan, an increase of 41.3%. Excellent performance in 21 years and a good start in 22 years.
Profitability continued to improve and cost control was stable. The gross profit margin of the company was 76.7% in 21 years, with a year-on-year increase of 2.8pp. The gross profit margins of online / direct / franchise channels were 50.9% (+ 13.3pp) / 81.1% (+ 2.9pp) / 68.9% (+ 1.2pp) respectively. The gross profit margins of all channels increased, and the gross profit margin of online channels recovered significantly. In terms of expense rate, the total rate of the company reached 47.9% in 21 years, with a year-on-year increase of 0.5pp, of which the sales expense rate / management expense rate / financial expense rate / R & D expense rate were 38.3% (- 0.2pp) / 5.8% (+ 0PP) / 0.8% (+ 0.4pp) / 3.1% (+ 0.3pp) respectively. Benefiting from the increase of gross profit margin and the stability of expense rate, the net profit rate of the company in 21 years reached 23%, with a year-on-year increase of 1.3pp, and the profitability remained good.
Excellent inventory management and improved operation capacity. The turnover days of clothing inventory of the company in 2021a / 2022q1 were 360 days / 298 days respectively, with a year-on-year decrease of 13 days / 64 days respectively. The inventory of the company in 22q1 reached 650 million yuan, with a growth rate of 15.3% (lower than the revenue growth rate), and the operation efficiency was further improved. In terms of cash flow, the net cash flow from operating activities of 2021a / 2022q1 company was RMB 900 million (+ 40.9%) and RMB 470 million (+ 27.4%) respectively, with good cash flow recovery.
Online performance is brilliant and offline stores are expanding rapidly. In 21 years, the company’s online / direct / franchise channels contributed revenue of 120 million yuan (+ 24.8%) / 1.91 billion yuan (+ 17.5%) / 680 million yuan (+ 18.6%), and the proportion of each channel remained basically stable. The tiktok is expanding by relying on its platform like shaking hands and Kwai, and achieving a faster growth rate. The Wuxi Online Offline Communication Information Technology Co.Ltd(300959) price system is unified. Offline store expansion drives performance growth, with a total of 121 to 1100 net stores opened in 21 years, of which 532 are directly operated / franchised (+ 46) / 568 (+ 75). According to the relevant survey data, Biem.L.Fdlkk Garment Co.Ltd(002832) golf clothing ranked first in the comprehensive share of similar products in 2021, with a comprehensive market share of 62.9%. In the past 21 years, the number of VIP members of the company exceeded 700000, and the company’s differentiated positioning and brand awareness on the subdivision track are still improving.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 1.45 yuan, 1.8 yuan and 2.22 yuan respectively, and the corresponding PE will be 16 times, 13 times and 11 times respectively. Considering that the company is a leader in high-end sports fashion, with outstanding brand awareness and leading profitability in the industry, the company is given a 22-year 20 times valuation, a target price of 29 yuan, and a “buy” rating for the first time.
Risk tip: the risk of weak terminal consumption; The risk of the epidemic affecting the sales of terminal stores; The risk of opening offline stores is less than expected.
