\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 398 Hla Group Corp.Ltd(600398) )
The company released the financial statements of 2021 and 2022q1. 1). According to the company's financial report, in 2021, the company achieved a revenue of 20.188 billion yuan / yoy + 12.41%, a net profit attributable to the parent company of 2.491 billion yuan / yoy + 39.60%, a net operating cash flow of 4.361 billion yuan / yoy + 99.94%, and a basic EPS of 0.58 yuan / yoy + 23.40%; 2). In terms of splitting a single quarter, 2021q4 achieved a revenue of 6.032 billion yuan / yoy-2.40%, a net profit attributable to the parent company of about 444 million yuan / yoy-10.25%, and a net operating cash flow of 2.180 billion yuan / yoy-22.57%; 3) 2022q1: in the first quarter, the company's revenue was about 5.212 billion yuan / yoy-5.15%, the net profit attributable to the parent company was 723 million yuan / yoy-14.17%, the basic EPS was 0.17 yuan / yoy-15.00%, the gross profit margin was about 45.26% / yoy-2.36pcts, and the net profit attributable to the parent company was about 13.87% / yoy-1.46pcts.
By brand, Hla Group Corp.Ltd(600398) main brand revenue grew steadily, and San Keno's profitability was better. In 2021, Hla Group Corp.Ltd(600398) series realized a main business revenue of 15.133 billion yuan / yoy + 9.91%, accounting for about 74.96% / yoy-1.71 PCTs of the total revenue, and the gross profit margin was about 40.01% / yoy + 4.03 PCTs. In addition, the revenue of San Keno series is 2.260 billion yuan / yoy + 9.14%, and the gross profit margin is about 51.57% / yoy-1.14pcts. In the future, the company will still focus on the strategy of "multi brand, multi category and collectivization", strengthen brand awareness from multiple dimensions such as products, channels and marketing, optimize the digital and intelligent supply chain system, and improve consumer loyalty and stickiness.
By channel, the growth rate of online channels is bright, and the gross profit margin of offline channels continues to increase. In 2021, the sales volume of online channels was 2.726 billion yuan / yoy + 32.98%, and the CAGR in seven years was 38.99%; The gross profit margin of online channel sales is 36.19% / yoy-2.28pcts. The decline in the gross profit margin of online channel may be related to the company's recent efforts to strengthen the brand's digital marketing ability and invest more costs. In 2021, the sales volume of offline channels was 16.709 billion yuan / yoy + 8.54%, and the gross profit margin was 42.71% / yoy + 4.54pcts. The recovery process of offline channel sales was limited, which was mainly due to repeated travel restrictions and offline store closures caused by local epidemics in 2021. The increase in gross profit margin was mainly due to the company's accelerated layout of Direct stores in recent years, and the profitability of Direct stores was relatively strong compared with franchise stores, The increase in the proportion of Direct stores will also drive the overall gross profit margin of offline channels.
In terms of products, the sales of trousers account for a relatively high proportion, and the gross profit margin of T-shirts and suits is relatively excellent. In 2021, the company's sales revenue of pants / T-shirts / down jackets / shirts / suits / jackets / knitwear / other clothing was 40.73/25.71/18.50/21.89/12.82/14.91/9.39/5.040 billion yuan respectively. The gross profit margin is 38.59% / 43.10% / 34.28% / 36.76% / 43.11% / 35.96% / 34.82% / 51.34% respectively. Affected by the epidemic situation in China in the first and second quarters of 2022, it is expected that the company's product sales may be affected in the first half of the year. It is expected that after the epidemic situation in China is controlled stably in the second half of the year, the company's sales will usher in an orderly recovery.
Investment suggestion: as a leading enterprise in China's garment industry, the company benefits from the new trend of national tide consumption and economic internal circulation, as well as its own brand awareness barriers, efficient supply chain, multi brand and full category coverage and perfect sales channel network. After the disturbance of the epidemic is stable, the company is expected to achieve sustained growth in the two dimensions of sales repair and product price increase. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.69/29.4/3.21 billion respectively, and the corresponding PE will be 8x / 8x / 7X respectively. It will be covered for the first time and given a "recommended" rating.
Risk tips: the epidemic situation repeatedly exceeds the expected risk, and the industry competition intensifies the risk, etc
