\u3000\u3 China Vanke Co.Ltd(000002) 960 Jade Bird Fire Co.Ltd(002960) )
Event: the company plans to acquire 4.3307% equity of its holding subsidiary Qingniao Jieguang with its own capital of 09 million yuan. After the acquisition, Qingniao Jieguang becomes a wholly-owned subsidiary of the company.
From the acquisition of Qingniao Jieguang, talk about the management strategy of multiple brands and channels of the company
1. This acquisition is the company’s further allocation investment in emergency lighting and intelligent evacuation capacity; At the same time, Anhui Qingniao, a wholly-owned subsidiary of Qingniao Jieguang, is one of the implementation subjects of the raised capital investment projects of the company’s non-public offering of shares. After the acquisition, Qingniao Jieguang will become a wholly-owned subsidiary of the company, which is convenient for the smooth implementation of subsequent raised investment projects.
2. As of the beginning of 2022, the company has many brands such as Bluebird, Zhongke Zhichuang, Jiuyuan, leftward and zhengtianqi. In the past, in the process of studying similar companies with certain real estate post cycle attributes, we found that except Bluebird, other companies tend to be single brands. Even if they acquire new brands, they will realize the expansion of single brands through transformation and empowerment. However, Bluebird is still a multi brand strategy. Our exclusive research and understanding are as follows:
1) learn from overseas giants. Take Honeywell and Siemens as examples. They all have multiple business lines corresponding to multiple brands. As the company’s competitors in many fields (especially in industry and overseas) are mainly overseas enterprises, we should learn from them.
2) in the Chinese market, although the company is a well deserved leader in the field of general alarm, and the leading position has been further consolidated and strengthened since 2021, the market share is still less than 15%; The market share of emergency evacuation is lower, so there is still enough room to improve the market share in China. In this situation, the multi brand strategy can provide more room for the company to attack the city and seize the market share.
3) expand from multi brand strategy to discuss the sales model of the combination of company distribution and direct sales. By the end of 2021, more than 75% of the company’s sales revenue is distribution, and the rest is direct sales (mainly long-term brand + industrial business). For the sales mode combining distribution and direct sales, our understanding of it and the company’s multi brand operation and management strategy reflects the same core and concept, that is, as a platform or system, the goal of the company is the rapid improvement of market share. The mode combining multi brand strategy, direct sales and distribution is a means, which can make the means flexibly used and give full play to efficiency. The most important thing is: certainty and fairness. Therefore, after formulating the rules and standards, the headquarters of the company will carry out everything in strict accordance with the rules, impartial, fair and just, which not only ensures the internal horse racing mechanism (multi brand, direct sales and distribution coexist), but also sets a red line for internal competition, such as project filing system, so as to combat vicious competition and provide certainty for various behaviors. In fact, this is also the most important reason why the company’s dealer team and system are always stable and strong.
Profit forecast and investment rating: we maintain the company’s EPS of 2.02, 2.74 and 3.67 yuan from 2022 to 2024, and PE of 18, 13 and 10 times respectively, maintaining the “buy” rating.
Risk tip: the decline of industry demand and the intensification of competition lead to the continuous decline of product price and gross profit margin
