\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 77 Anhui Korrun Co.Ltd(300577) )
The company issued 2021 annual report and 2022q1 financial report. In 2021, the revenue was 2.29 billion yuan, a year-on-year increase of 17.8%, the net profit attributable to the parent company was 180 million yuan, a year-on-year increase of 131%, the gross profit margin was 26.6%, a year-on-year decrease of 1.9pct, the net profit margin was 7.5%, and a year-on-year increase of 4.1pct. The net profit attributable to the parent company increased by 2.262 billion yuan, with a year-on-year increase of 2.262 billion yuan and a year-on-year decrease of 1.25% in the gross profit margin.
2B business 21h2 accelerated growth. In 2021, the company’s 2B revenue was 1.46 billion yuan, a year-on-year increase of 24%, the growth rate of 21h1 / H2 was 2.6% / 48%, and the annual gross profit margin was 26%, a year-on-year decrease of 3.2pct. The company continued to consolidate the cooperative relationship with Nike, Decathlon, VF group, Dell and other high-quality customers, the order scale continued to increase, and the market position and share increased steadily. At the same time, relying on excellent lean management and manufacturing capacity, the company has further expanded to become a bag supplier of well-known brands such as JanSport, Dickies and Li Ning, and the customer structure of the company has been continuously consolidated and optimized.
2C three major brands continued to consolidate the matrix. 2C business achieved an annual revenue of 760 million yuan, a year-on-year increase of 3.2%, 21h1 / H2 revenue growth of 13.6% / – 3.7%, and the annual gross profit margin increased by 0.4pct to 28.3%. Based on the in-depth understanding of traditional industries and Internet mode, the company provides users with travel consumer goods, integrates high technology into them, improves people’s equipment and experience, and continues to build three brand matrices by using strong supply chain management ability. We believe that the epidemic in 2021 repeatedly led to the weakness of the travel industry, making “90 points” face greater challenges in the short term of the brand investment period.
Knitting manufacturing business continued to advance. The company cut into the field of textile, garment and fabric production and manufacturing by participating in Shanghai Jiale. Compared with the luggage category, the market scale of clothing and fabrics is larger, occupies an important position in the global economy, and the industry prospect is stable. Based on the core customer UNIQLO, the company has also expanded the customers of well-known brands such as JanSport, Dickies and Li Ning.
We are optimistic about the company’s overall recovery in 2022 under the background of epidemic control and gradual recovery of travel consumption:
① in terms of OEM manufacturing business, the company continued to adhere to the strategy of high-quality customers, combined with orders and market trends, orderly promoted capacity expansion projects such as Chuzhou Industrial Park and Indonesia luggage production base, continuously improved capacity layout and consolidated enterprise competitive advantage. ② In terms of brand management business, the brand management side combines big data and accurate user portrait analysis to actively develop new products and expand new media marketing channels such as Tiktok.
Profit forecast and valuation. We expect the company’s net profit attributable to the parent company in 2022 / 2023 to be 218 million yuan / 275 million yuan, and give the company a PE valuation of 22x in 2022, corresponding to the target price of 20.02 yuan / share, maintaining the rating of “better than the market”.
Risk warning. The construction of independent brands and the expansion of new channels are less than expected, and the international trade situation is deteriorating.
