\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 612 Lao Feng Xiang Co.Ltd(600612) )
The annual report of the company in 2021 increased steadily, and the growth rate slowed down in 2022q1 affected by the epidemic
The company released its 2021 annual report and the first quarterly report of 2022: in 2021, it achieved a revenue of 58.691 billion yuan (+ 13.5%) and a net profit attributable to the parent company of 1.876 billion yuan (+ 18.3%); In 2022q1, the revenue was 18.442 billion yuan (+ 7.2%), the net profit attributable to the parent company was 407 million yuan (- 37.3%), and the net profit not attributable to the parent company was 466 million yuan (+ 7.5%). We believe that the concentration of gold and jewelry industry leaders has an obvious trend to increase, the Lao Feng Xiang Co.Ltd(600612) brand has a deep accumulation, the channel expansion and the reform of state-owned enterprises have brought efficiency optimization, which is expected to grow steadily. Considering the impact of the epidemic in East China, we lowered the company's profit forecast for 20222023 and added a new profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 1.876 (- 1.70) / 2.118 (- 2.27) / 2.388 billion yuan, corresponding to EPS of 3.59 (- 0.32) / 4.05 (- 0.43) / 4.57 yuan. The current stock price corresponds to PE of 10.4/9.3/8.2 times. The valuation is reasonable and maintains the "buy" rating.
Take multiple measures to develop the market, the main business of jewelry drives growth, and the cost is well controlled
In 2021, the company's jewelry business achieved a revenue of 46.86 billion yuan, a year-on-year increase of 23.1%, which was mainly due to the continuous expansion of the company's marketing network layout. In terms of profitability, the company's comprehensive gross profit margin in 2021 was 7.8% (- 0.4pct), and the sales / management / financial expense ratio was 1.4% / 0.7% / 0.5% respectively, with a year-on-year increase of + 0pct / - 0.1pct / - 0.1pct respectively, with good expense control. In the first quarter of 2022, affected by the epidemic in East and South China, the growth rate of the company's revenue slowed down. In 2022q1, the comprehensive gross profit margin was 7.9% (+ 0.2pct), the sales / management / financial expense ratio was 1.5% / 0.6% / 0.5% respectively, and the profitability remained basically stable.
Multi channel and diversified expansion and development, set the "14th five year plan" and stimulate endogenous power in an all-round way
Lao Feng Xiang Co.Ltd(600612) as the "century old gold lettered signboard" of Chinese jewelry, it is leading the industry in terms of popularity, reputation, loyalty and so on. In terms of channels, by the end of 2021, the total number of stores of the company has reached 4945 (including 186 self operated stores and 4759 chain stores), with a net increase of 495 throughout the year, and more than 300 new stores are planned to be opened in 2022; Set up a company in Hainan free trade port to integrate resources and help open up domestic and foreign businesses; On the online side, actively promote new sales methods such as webcast and member mall. In terms of brand, the number of contracted artists showed a new brand image, and the brand influence continued to improve. During the 14th Five Year Plan period, the company will continue to deepen the reform of "double hundred actions", focus on brand, talent, technology and scale advantages, improve both internal and external skills, and promote the improvement of core competitiveness.
Risk tips: repeated epidemics, intensified market competition, and the effect of reform is less than expected.
