\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 398 Hla Group Corp.Ltd(600398) )
On April 27, the company announced the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue was 20.188 billion yuan, an increase of 12.41% and the net profit was 2.491 billion yuan, an increase of 39.60%. In 2022q1, the revenue was 5.212 billion yuan, a decrease of 5.15% and the net profit was 723 million yuan, a decrease of 14.17%. The annual performance recovered steadily. Q1 fluctuated due to the impact of the epidemic. We are optimistic about the continuous expansion of the company's new brands and maintain the buy rating.
Key points supporting rating
The main brand has recovered steadily and the new brand has made great efforts. By channel, the company's offline channel revenue was 16.709 billion yuan, an increase of 8.54% and its online revenue was 2.726 billion yuan, an increase of 33%. Wuxi Online Offline Communication Information Technology Co.Ltd(300959) both showed a relatively stable recovery. On the line, the company continues to make efforts to mainstream e-commerce platforms, and at the same time meets diversified consumer needs in the emerging channels of Tiktok and Kwai. By brand, Hla Group Corp.Ltd(600398) brand achieved an annual revenue of 15.133 billion yuan, a year-on-year increase of 9.91%. The company continued to expand the core business circle around the main brand, promote the layout of Direct stores in the shopping center, and continuously optimize the channel structure. The net increase of 129 stores in the whole year reached 5672. San Keno's professional wear business increased by 9.14% to 2.26 billion yuan, maintaining steady growth. The revenue of other brands was 2.042 billion yuan, with a year-on-year increase of 27.14%. The company continued to strengthen the expansion of new brands. In the whole year, the net number of new brands opened 142 to 1980 stores, of which ovv, Hailan preferred and British contributed the main increment.
The epidemic situation repeats until Q1 performance fluctuates. Affected by the abnormal weather and the repeated epidemic in March, the company's 22q1 revenue was 5.212 billion yuan, a decrease of 5.15% and the net profit attributable to the parent company was 723 million yuan, a decrease of 14.17%. The lower end of the line is more affected by the epidemic. When the epidemic recovers, the company's revenue performance is expected to return to the normal and stable growth track.
The rise in gross profit margin drove the recovery of the company's net profit margin. The gross profit margin of the company in 2021 was 40.64%, with an increase of 3.22pct, mainly due to the substantial optimization of product discount rate, the increase of the proportion of direct sales and the optimization of product structure of e-commerce channels. During the period, the expense rate increased slightly, with an increase of 0.71 PCT, mainly due to the increase of 2.73 PCT in the sales expense rate. The company strengthened brand publicity throughout the year, accelerated the expansion of Direct stores, and increased the sales rate. The management expense rate decreased by 1.89 PCT to 5.54%, which continued to be optimized. The annual net profit margin increased by 2.33pct to 11.89%. By the end of Q1, the company's inventory turnover days had increased by 52 days to 263 days, which was mainly affected by the abnormal weather and repeated epidemic in the first quarter, which affected the terminal sales, and the follow-up is expected to improve.
Continue to consolidate the advantages of main brands and develop new brands. The company's main brand continues to focus on multi-channel layout, strengthen the expansion of Direct stores, shopping center stores and e-commerce channels, and continue the channel expansion strategy for new brands. The operation side will deepen the digitization and intelligent supply chain system, establish long-term and close links with consumers, and continue to promote the long-term and high-quality development of the company.
Valuation
Under the current share capital, the earnings per share from 2022 to 2024 are expected to be 0.56/0.62/0.68 yuan respectively; The P / E ratio was 9 / 8 / 7 times respectively, maintaining the buy rating.
Main risks of rating
Industry competition intensifies, new product expansion fails to meet expectations, and raw material prices fluctuate
