\u3000\u3 Shengda Resources Co.Ltd(000603) 518 Jinhong Fashion Group Co.Ltd(603518) )
Event: the company released its 2021 performance, significantly improved its performance and accelerated the construction of high-quality channels
The company’s revenue in 2021 was 4.324 billion yuan, with a year-on-year increase of 29.48%, of which the revenue and growth rate of 21q1-4 were 1.072 billion (+ 78.05%), 890 million (+ 68.81%), 856 million (+ 29.37%) and 1506 million (- 2.76%) respectively.
In 2021, the net profit attributable to the parent company was 224 million yuan, with a year-on-year increase of 135.91%, of which the net profit attributable to the parent company and the growth rate of 21q1-4 were 95 million (+ 1566180%), 39 million (turnaround), 07 million (turnaround) and 83 million (- 71.61%) respectively.
By brand: in 2021, all brands of the company achieved an overall increase in sales revenue, with teeniewenie’s revenue of 3.176 billion yuan (accounting for 73.44%) and a year-on-year increase of 37.66%; Vgrass revenue was 1.114 billion yuan (accounting for 25.77%) with a year-on-year increase of 11.30%; Yunjin brand revenue was 22 million yuan (0.5% of the total), with a year-on-year increase of 23.92%.
By channel: in 2021, the company increased its investment in online channels and promoted the rapid growth of online business. The online revenue was 1.43 billion yuan (accounting for 33.07%), an increase of 71.00% year-on-year; Offline channels continued to make efforts, with offline revenue of 2.878 billion yuan (accounting for 66.54%), a year-on-year increase of 15.61%; The revenue from other channels was 17 million yuan (0.38% of the total), with a year-on-year increase of 14.45%.
In 2021, the gross profit margin of the company increased by 1.94pct to 69.62% year on year; The net interest rate attributable to the parent company was 5.18%.
Turnover efficiency was significantly improved. In 2021, the company’s inventory scale was 1.022 billion yuan, with a year-on-year increase of 27.50%. The inventory turnover days were 249.83 days, a year-on-year decrease of 62.72 days.
Accelerate the construction of high-quality channels, iteratively upgrade offline stores and promote the landing of large stores. By the end of 2021, the company had 1429 offline stores. The total number of teenieweenie brand stores is 1212, including 1077 Direct stores and 135 franchise stores. There are 216 VG stores and 187 RASS brand stores in total. There is one Yunjin brand store, which is a direct store.
In the future, the company will continue to improve its commodity power, retail power and brand power, carry out business around the lifestyle of target customers, and ensure the realization of the company’s strategic objectives and annual business plan: 1) core needs; 2) Channel development; 3) Marketing; 4) New business.
Maintain profit forecast and buy rating. The company is deeply engaged in the outdoor track with high prosperity. The camping heat continues to drive the demand growth of camping and surrounding products. The supply chain share of OEM end is expected to increase, and the sales of brand end new products are gratifying and the increment can be expected. We expect that the company’s EPS in 22-24 years will be 1.01 yuan, 1.23 yuan and 1.49 yuan / share respectively, and the PE will be 9.07, 7.41 and 6.13x respectively.
Risk warning: macroeconomic fluctuation risk; Industry competition risk; Financial risks; Unable to prepare to grasp the R & D and design risks of changes in market demand.
