DEA shares (301177)
In 2022q1, the net profit attributable to the parent company increased by 16.8% year-on-year, and the growth rate slowed down in March due to the epidemic
The company released its annual report and first quarterly report on April 21, and achieved a revenue of 4.62 billion yuan in 2021, a year-on-year increase of + 87.6%; The net profit attributable to the parent company was 1.3 billion yuan, a year-on-year increase of + 131.1%, and the gross profit margin was 70.1%, a year-on-year increase of + 0.4pct. In 2021, the revenue of single Q1 / Q2 / Q3 / Q4 was 10.8/12.4/10.9/1.21 billion yuan respectively, and the revenue of single Q3 / Q4 in 2021 increased by 64.40% and 25.50% year-on-year respectively; The net profit attributable to the parent company was 3.2/4.1/2.6/310 million yuan respectively, of which 21q3 / Q4 increased by 63.6% / 23.4% respectively year-on-year; 22q1 achieved a revenue of 1.22 billion yuan, a year-on-year increase of + 12.6%, a net profit attributable to the parent company of 380 million yuan, a year-on-year increase of + 16.8%, and a gross profit margin of 34.5%, a year-on-year increase of -2.5pct. Among them, the revenue from January to February was 800 million yuan, about + 32% year-on-year, and the net profit attributable to the parent company was 230 million yuan, about + 38% year-on-year; The company’s stores are mainly located in high-speed cities in East China. It is speculated that the growth rate slowed down due to the epidemic in March.
Enhanced brand power, improved channels and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) high growth; Cost reduction and efficiency increase are significant, and the cost rate is reduced
The revenue side operates well and divides products. In 2021, the revenue of diamond proposal ring / wedding ring was 3.66/870 billion yuan, yoy + 95.9% / + 56.2%, accounting for 79.2% / 18.7% of the revenue, yoy + 0.3pct / – 0.7pct; In terms of channels, the revenue of online self-supporting / offline direct / offline joint operation is RMB 600 / 36.7 / 320 million, yoy + 168.4% / 80.3% / 71.8%, accounting for 13.0% / 79.5% / 7.0%, yoy + 3.9pct / – 3.2pct / – 0.6pct. The growth was mainly driven by the optimization of the company’s brand communication, the expansion of brand influence, the improvement of channel construction ability and operation level; Cost reduction and efficiency increase at the expense side are significant. The sales / management / financial expense ratio is 26.3% / 3.7% / 0.6%, yoy-3.2pct / – 3.1pct / + 0.1pct.
Investment advice
Diamond wedding rings driven by brand marketing are scarce. DTC mode strengthens emotional expression and brand building. Significant brand differentiation and brand tonality bring efficient user screening. Under the background of the triple transformation of “people, goods and market” in the jewelry industry brought by the new retail, the company is expected to continue to obtain efficient user transformation through brand building + improving channels. It is estimated that the net profit of “1.36 billion yuan” in 2027 will be maintained at 2.2-2.2 times that of “1.26 billion yuan” in 2027.
Risk tips
The duration of the epidemic exceeded expectations; Store development is less than expected; Brand concept attractiveness reduces risk. single
