\u3000\u3 China Vanke Co.Ltd(000002) 154 Baoxiniao Holding Co.Ltd(002154) )
The company released its annual report for 2021 on April 15, 2022. In 2021, the company achieved a revenue of 4.451 billion yuan, a year-on-year increase of 17.52%. The net profit attributable to the parent company was 464 million yuan, a year-on-year increase of 26.70%. Optimistic about the company's direct, franchise and online multi-channel growth, and maintain the buy rating.
Key points supporting rating
In 2021, the Baoxiniao Holding Co.Ltd(002154) brand focused on core categories, achieved remarkable results in channel optimization and expansion, and hazys grew rapidly. By brand, the 2021 Baoxiniao Holding Co.Ltd(002154) main brand focuses on the category of suits, covering all age customers through high-end, flagship and drainage products, driving the rapid growth of revenue by 26.26% to 1.612 billion yuan. Hazzys brand enhanced joint product promotion and multi category development, and vigorously promoted the business development of multiple online platforms, driving the annual revenue growth of 17.83% to 1.452 billion yuan. In terms of offline business, the company's main brand and hazys focus on endogenous growth and enter the store expansion cycle. The number of stores of main brands increased by 17 to 779 in 2021 (18 / - 1 for franchise / direct sales respectively); The number of hazzys stores increased by 8 to 401 (franchise / direct sales increased by - 5 / 13 respectively). In the future, the number of main brands and hazzys stores will continue to increase, which is expected to further drive revenue growth. In terms of online business, the company actively expanded online channels, and its revenue increased by 13.20% to 681 million yuan. In 2021h2, affected by the epidemic, the company's revenue growth slowed down, but it did not change the steady growth trend driven by the company's dual brand.
The profitability is stable, the R & D investment is increased, which is conducive to the long-term development of the brand, and the inventory turnover is significantly improved. Product competitiveness was strengthened, driving the gross profit margin to increase by 0.95pct to 65.39% year-on-year. The sales expense rate and management expense rate remain stable; Focusing on R & D design and increasing R & D investment, the R & D expense rate increased by 0.13pct to 1.70% year-on-year, which is conducive to the long-term development of many brands. In 2021, the company focused on the reform of supply chain and the construction of fast reaction system, greatly improved the efficiency of inventory turnover, and reduced the number of inventory turnover days by 41 to 261 days.
Continuous improvement of product coverage, optimization of offline and online dual channels, speed-up and drive future growth. The multi brand matrix of the company has taken shape, and the main brand has strong endogenous growth certainty. In the future, the company will continue to open new high-efficiency shopping center stores; The sub brand hazzys has superior growth and covers a wide range of customer groups. At present, it is in the net store opening cycle. In the future, the company will actively layout various channels, continue to promote the optimization of offline stores, strengthen e-commerce investment and explore new growth points. The performance is expected to maintain steady growth and maintain the leading position of China's medium and high-end business casual men's wear.
Valuation
Under the current share capital, the earnings per share from 2022 to 2024 are expected to be 0.385 yuan, 0.474 yuan and 0.557 yuan respectively; The P / E ratio was 10 times, 8 times and 7 times respectively, maintaining the buy rating.
Main risks of rating
The channel expansion was less than expected, the recovery of consumption after the epidemic was less than expected, and the sales of new products were less than expected.
