\u3000\u3 China Vanke Co.Ltd(000002) 612 Lancy Co.Ltd(002612) )
Core view
Event: the company released the annual report of 2021, and the annual operating revenue was 3.665 billion yuan, a year-on-year increase of + 27.42%; The net profit attributable to the parent company was 187 million yuan, a year-on-year increase of + 31.97%; The non net profit attributable to the parent company was 184 million yuan, a year-on-year increase of + 82%. It is proposed to pay a cash dividend of 0.7 yuan for every 10 shares.
Comments:
The scale expansion of medical beauty has been steadily promoted, and the adjustment of women’s and children’s clothing business has achieved remarkable results. The business revenue of the company was RMB 1.68 billion / year-on-year, and the business profit of women’s clothing was RMB 1.68 billion / year-on-year, respectively, with a year-on-year increase of RMB 1.68 billion / year, and the business profit of the company was RMB 1.68 billion / year-on-year increase of RMB 1.62 billion / year respectively. Women’s wear business drives the high growth of online channels through brand upgrading and precision management & improving the efficiency of offline channels; Children’s wear business returns to profitability; The medical beauty business benefited from the revenue growth of mature institutions, the operation of high-tech Milan and the expansion of Jingfu institutions (a net increase of 9 in 21 years). The revenue side maintained rapid growth, and the profit side was under short-term pressure under the influence of the expansion of new institutions and the loss of high-tech Milan (an annual loss of about 49.97 million yuan), which is expected to improve in 22 years. In a single quarter, 22q4 company achieved a revenue of 1.015 billion yuan, a year-on-year increase of + 15.3%; The net profit attributable to the parent company was 29 million yuan, a year-on-year increase of – 68.2%, which is expected to be mainly due to the losses of new institutions and high-tech Milan in the medical and American business and the impact of the epidemic.
Women’s wear business promotes profitability and has good cost control. In 2021, the company’s gross profit margin was + 2.9pct to 57% year-on-year, of which the gross profit margin of women’s clothing / children’s clothing / medical beauty business was + 7.4 / + 0.9 / – 2.5pcts to 61.1% / 55.7% / 51.8% year-on-year respectively. Women’s clothing business led to the improvement of overall profitability. The ratio of sales / management / R & D / financial expenses increased from + 0.9 / – 0.5 / – 0.2 / + 0.1pct to 39.9% / 7.7% / 3.1% / 1.7% year-on-year respectively, and the expenses were well controlled. Under the comprehensive influence, the net interest rate rose from + 1.4pct to 6.2% year-on-year.
The three major brands of Yimei have a good growth momentum, and the profitability of old institutions has been steadily improved. According to the brands of medical beauty business, Milan / Jingfu / gaoshengli achieved revenue of RMB 760 million / 160 million respectively, with a year-on-year increase of 34% / 60.5% / 25.3% respectively, and the proportion of medical beauty revenue was 62.8% / 22.9% / 14.4% respectively. The growth of the three brands was good. In terms of the types of branches, the old / new / newly established institutions achieved revenue of RMB 820 million / 2.9 million / 0.10 billion respectively, accounting for 73.2% / 25.8% / 1% of the revenue respectively, of which the revenue of the top five institutions accounted for 82%; The net profit margin of sales was 13.2% / – 21% / – 91.6% respectively, with a year-on-year increase of – 1.2 / – 26.7 / + 25.6pcts respectively.
Investment suggestion: the company’s medical and beauty business has accelerated expansion, and the profit side is under pressure in the short term. With the gradual maturity of the newly established institutions, the profitability is expected to improve, and the clothing business has recovered steadily with multiple measures. Considering the continuous impact of the epidemic, we lowered the company’s profit forecast. It is expected that the company’s net profit attributable to the parent company in 22 / 23 / 24 will be RMB 200 / 270 / 350 million (the original forecast value was RMB 350 / 430 million in 22 / 23), corresponding to 49 / 37 / 29 times of the current market value PE respectively, maintaining the “overweight” rating.
Risk tip: the epidemic affects consumption, the profitability of newly established institutions is lower than expected, and the industry competition is intensified
