\u3000\u3 China Vanke Co.Ltd(000002) 612 Lancy Co.Ltd(002612) )
Steady growth in performance and improved profitability. In 2021, the company realized a revenue of 3.665 billion yuan (YoY + 27.42%), and a net profit attributable to the parent company of 187 million yuan (YoY + 31.97%). The gross profit margin of the whole year increased by 2.86 PCTs to 57.01% at the same time, mainly due to the optimization of women’s clothing business channels and brand upgrading. The sales expense rate increased by 2.37 PCTs to 39.91% at the same time, of which the advertising expense increased by 63.51% to 370 million yuan; The ratio of administrative expenses decreased by 1.56 PCTs to 7.74% and the R & D expenses decreased by 0.37 PCT to 3.07%, driving the overall net profit attributable to the parent company to increase by 0.18 PCTs to 5.11%. Among them, Q4 achieved a revenue of 1.015 billion yuan (YoY + 15.32%) in a single quarter, a net profit attributable to the parent company of 29 million yuan (yoy-68.23%), and the net interest rate decreased by 5.97pcts to 7.35%. The net operating cash flow at the end of the period increased by 24.07% to 471 million yuan. The company plans to pay a cash dividend of 0.70 yuan (including tax) for every 10 shares, with a total dividend of 31 million yuan.
Accelerating the expansion strategy of medical beauty business: the medical beauty sector achieved a revenue of 1.12 billion yuan (YoY + 37.84%), the gross profit margin decreased by 2.50 PCTs to 51.83% and the net profit margin decreased by 6.51 PCTs to 3.34%, mainly due to the loss of 8 new crystal skin institutions, the second Institute of Milan Baiyu high tech and the impact of Xi’an Gaosheng epidemic and decoration. There were 28 terminal institutions at the end of the period. 1) By brand: Milan Baiyu’s revenue is 703 million yuan (YoY + 34.01%, accounting for 62.77%), Jingfu Yimei’s revenue is 256 million yuan (YoY + 60.47%, accounting for 22.87%), and Gaosheng’s revenue is 161 million yuan (YoY + 25.34%, accounting for 14.36%). 2) In terms of business, the revenue of non-surgical medical beauty increased by 8.32 PCTs to 73.86%, and the revenue of surgical medical beauty reached 25.73%. 3) In terms of operation periods, the profitability of old institutions is prominent, the climbing speed of new institutions is accelerated, the proportion of revenue of old / new / newly established institutions reaches 73.20% / 25.82% / 0.98% respectively, the net interest rate of old institutions decreases by 1.16pcts to 13.18% at the same time, and the net interest rate of new institutions improves significantly, increasing by 25.58pcts to – 91.55% at the same time.
The performance of women’s Clothing & baby children increased steadily and the profit improved significantly: 1) women’s clothing sector: the revenue was 1.692 billion yuan (YoY + 27.86%), and the gross profit margin increased by 7.43 PCTs to 61.08%. Women’s clothing business channel to achieve “accurate tiktok, rapid turnover”, the reporting period revenue amounted to 335 million yuan (yoy+20%), of which Tmall channel water growth rate of 40%, and the channel channel water flow scale exceeded 100 million yuan. 2) Infant and child sector: the revenue was 816 million yuan (YoY + 20.05%), and the gross profit margin increased by 0.93 PCT to 55.67%. The infant and child business continued to optimize the sales channel structure and achieved steady growth in self operated channel and online channel revenue.
Fine operation consolidates brand advantages: deal with the process of industry standardization and the stage of fine operation. 1) management level: the company establishes langzi Medical Committee, strengthens the medical safety management of various institutions, speeds up the training of medical talents, and forms a training system of phased promotion and internal and external linkage. 2) Strategic level: seizing the industry opportunities, we have successively set up six medical beauty M & a funds, with a total scale of 2.756 billion yuan, effectively promoting the scale improvement and target incubation of medical beauty business. 3) Digital level: actively explore the development of medical beauty intelligent services, accelerate the mutual introduction of women’s clothing and medical beauty business customers, reduce the cost of medical beauty customers, and build a first mover advantage barrier.
Profit forecast and investment suggestions: from Yimei to Yimei, Lancy Co.Ltd(002612) is the leader of high-quality Yimei chain organization, the business growth of women’s Clothing & baby children is stable, and the regional expansion strategy of Yimei is accelerated. Based on the performance of the company’s 2021 annual report, we expect the company to achieve revenue of RMB 4.019/4.473/5.103 billion and net profit attributable to the parent company of RMB 216/2.53/302 million respectively from 2022 to 2024, corresponding to eps0.01 49 / 0.57/0.68 yuan / share. The current share price corresponds to 51 times PE in 22 years. We are optimistic about the company’s expansion ability and operation ability in the medical and American field and maintain the “overweight” rating.
Risk tip: the expansion of medical and American business is less than expected, the industry competition is intensified, and the epidemic situation is repeatedly affected.
