\u3000\u3000 Biem.L.Fdlkk Garment Co.Ltd(002832) (002832)
Key investment points
The leader of high-end fashion sportswear. It has two brands Biem.L.Fdlkk Garment Co.Ltd(002832) and Venice. The main brand Biem.L.Fdlkk Garment Co.Ltd(002832) was established in 2003 to locate the elite dress combining professional golf with fashion and leisure. The products are divided into three series: golf, life and fashion. In 2018, it launched the holiday travel clothing brand Venice, which is located in the travel clothing of middle-class families. As of 2021h1, there were 1007 stores (500 Direct stores + 507 franchisees), with offline revenue accounting for 94.5%.
Under the adverse wind environment, the revenue and stores continue to expand, highlighting the company's track advantages and brand strength. 1) Overall, in 2020, under the impact of the epidemic, China's overall consumption was depressed, and the retail sales of clothing (above the quota) decreased by 8.1% year-on-year. In this context, the company's revenue in 2020 only declined (- 22.34%) year-on-year in Q1, resumed growth from Q2, and the annual revenue was 1.938 billion yuan / yoy + 6.14%. In 2021, q1-q3 revenue further increased, with a year-on-year increase of + 24.55% / an increase of 29.56% over the same period in 2019. 2) Quarter by quarter, the year-on-year growth rate of revenue in the first three quarters of 2021 slowed down quarter by quarter due to the base, but showed an accelerated trend compared with the same period in 2019. The revenue of 2021q1 / Q2 / Q3 increased by 45.17% / 22.44% / 13.55% respectively, which was + 12.74% / + 31.05% / + 45.01% respectively compared with the same period in 2019. 3) In terms of channels, the number of stores expanded steadily, with 909, 979 and 1007 stores in 2020h1, 2020h2 and 2021h1 respectively, with a year-on-year increase of 13.9% / 9.5% / 10.8% respectively.
Under the tone of "light luxury brand", the operation quality and profitability of the company are improved. After the epidemic, the leading advantages were highlighted, the bargaining power of the company to suppliers was improved, and the price increase rate of products was slightly improved. At the same time, the company adheres to the medium and high-end positioning, optimizes terminal discounts and strengthens channel management, so as to achieve the synchronous improvement of business quality and profitability. 1) Achieve Omni channel growth: online / direct / franchise revenue in 2021h1 increased by 41.05% / 39.94% / 11.35% respectively year-on-year; 2) Improvement of statement quality: at the end of September 2021, the inventory decreased by 1.08% year-on-year to 645 million yuan, the inventory turnover rate increased from 0.68 in the same period last year to 0.75, and the net cash flow from operating activities increased by 79.04% year-on-year to 687 million yuan in the first three quarters of 2021; 3) Endogenous extension jointly promoted growth: in 2021h1, the same store revenue increased by 19.95% year-on-year and the number of stores increased by 10.8%, contributing to the growth of revenue; 4) Increase in gross profit margin: the gross profit margin in the first three quarters of 2021 was 71.68%, up 4.61pct year-on-year.
Profit forecast and investment rating: as the leader of high-end sports fashion clothing, the company is expected to continue to improve its brand strength and further open up profit space through the adjustment of channel and product layout in the future. Strengthen the professional golf brand image, open a golf high-end sports fashion store, implement the concept of "Maotai in clothes" and create a super category "T-shirt expert". We are optimistic about the continuous performance of the company's advantages in supply chain, product R & D and member construction. It is expected that the company's revenue will increase by 30.1% / 21.8% / 18.2% year-on-year from 2021 to 2023, the net profit attributable to the parent company will increase by 25.7% / 29.8% / 21.6% year-on-year, and the corresponding PE will be 21.9x/16.9x/13.9x respectively. The "buy" rating will be given for the first time.
Risk tip: the epidemic repeatedly affects residents' consumption, channel sinking is blocked, shareholders' holdings are reduced, etc
