\u3000\u3 Shengda Resources Co.Ltd(000603) 587 Dazzle Fashion Co.Ltd(603587) )
The revenue of 2022q1 was 597 million yuan, a decrease of 9.09%, and the net profit attributable to the parent company in 22q1 was 150 million yuan, a decrease of 23.07%.
On April 27, the company released the performance of 2021 and 2022q1. The revenue in 2021 was 2.898 billion yuan, an increase of 13% at the same time, mainly due to the control of the epidemic and the recovery of the retail market. Among them, the revenue and growth rate of 21q1-4 were 657 million (+ 61.08%), 696 million (+ 20.34%), 671 million (+ 3.65%) and 874 million (- 6.10%) respectively.
In 2021, the net profit attributable to the parent company was 689 million yuan, an increase of 9.47%, of which the net profit attributable to the parent company and the growth rate of 21q1-4 were 195 million (+ 60.14%), 195 million (+ 10.65%), 165 million (- 6.52%) and 134 million (- 13.52%) respectively.
In 2021, the company plans to distribute cash dividends of RMB 10 (including tax) to all shareholders for every 10 shares, with a total cash dividend of RMB 480 million (including tax), accounting for 69.68% of the net profit attributable to the parent company.
By brand, the Da revenue in 2021 was 1.632 billion yuan (accounting for 56.33% of the total), an increase of 10.00% at the same time; DM revenue was 202 million yuan (accounting for 6.98% of the total), an increase of 3.03% at the same time; DZ’s income was 1.026 billion yuan (accounting for 35.39% of the total), an increase of 18.62% at the same time; RA revenue was 33 million yuan (1.13% of the total), an increase of 114.66% at the same time.
By channel, the offline revenue in 2021 was 2.507 billion yuan (accounting for 86.65% of the total), an increase of 14.34%, of which the direct sales revenue was 1.291 billion yuan (accounting for 44.54%), an increase of 11.78%, and the distribution revenue was 1.216 billion yuan (accounting for 41.97%), an increase of 17.19%; Online revenue was 386 million yuan (13.35% of the total), an increase of 5.04%.
In 2021, the gross profit margin will be reduced by 0.01pct to 76.59%; The net interest rate attributable to the parent company is 23.80%, with a decrease of 0.76pct. 22q1 gross profit margin is 76.65%, with a decrease of 1.7pct, and the net profit attributable to the parent company is 25.19%, with a decrease of 4.58pct.
By brand, the gross profit margin of DA in 2021 was 78.05%, an increase of 0.37pct; DM gross profit margin is 80.31%, with a decrease of 0.29pct; DZ gross profit margin is 73.62%, with a decrease of 0.42pct; The gross profit margin of RA was 80.78%, with an increase of 3.08pct.
By channel, in 2021, the gross profit margin of offline channels was 76.76%, with a decrease of 0.01pct, of which the gross profit margin of direct channels was 82.68%, with an increase of 0.43pct, and the gross profit margin of distribution channels was 70.49%, with a decrease of 0.18pct; The gross profit margin of online channels was 76.06%, with a decrease of 0.07pct.
All categories adhere to independent design and R & D to ensure the uniqueness and innovation of products. In 2021, the company’s sales expense rate, management expense rate, R & D expense rate and financial expense rate were 38.02% (- 0.65pct), 5.74% (+ 0.19pct), 2.23% (+ 0.02pct) and – 1.05% (+ 1.72pct) respectively.
Among them, the change of sales expenses is mainly due to the increase of sales staff salary, rent and advertising and brand promotion expenses; The change of management expenses is mainly due to the increase of managers’ salary; The change of R & D expenses is mainly due to the increase of R & D personnel salary and sample clothing production expenses; Changes in financial expenses are mainly due to the implementation of the new lease standards and the recognition of interest on lease liabilities.
Turnover efficiency was significantly improved. In 2021, the company’s inventory scale was 323 million yuan, an increase of 4.35% at the same time. The inventory turnover days are 168 days, the same as minus 20 days.
The structure of offline stores was adjusted, and the operation quality of direct channels continued to improve.
As of December 31, 2021, the company has 1199 retail stores nationwide, with a net opening of 45 stores, including 354 Direct stores and 845 distribution stores. Due to the market positioning of medium and high-end brand women’s wear, the company’s sales terminal is mainly located in medium and high-end commercial properties. The company has established cooperative relations with high-end department stores such as Beijing SKP, Wangfujing Group Co.Ltd(600859) , Yintai, Jiuguang, yishidan and commercial real estate groups such as China Resources, Henglong, Deji, jiulongcang and Swire Group.
Strategy and Prospect: ① double drive of endogenous extension, expand commercial track and promote coordinated development of multiple brands; ② Adhere to innovation and quality DNA to build brand strength; ③ Global digital operation, upgrading consumer experience and improving operation efficiency
Adjust the profit forecast and maintain the buy rating. The company is committed to focusing on the field of fashion, focusing on brand value and building an internationally competitive industrial group; In the future, the company will focus on brand, channel, quick reaction and other aspects to upgrade, realize digital transformation and improve operation quality; Explore new ways of e-commerce marketing and enrich e-commerce channels. In the short term, due to the repeated impact of offline outbreaks, we expect EPS to be 1.55, 1.86 and 2.13 yuan / share respectively in 22-24 years (the original values of 22-23 are 1.80 and 2.06 yuan / share respectively), and PE to be 9.35x, 7.76x and 6.81x respectively.
Risk warning: repeated regional epidemics in China; The operation of the store is less than expected; Store operating costs fluctuate and rise; Changes in consumers’ demand for fashion; The growth rate of passenger flow slows down, etc.
