Event: the disclosure of 21H1 performance, the performance continues to grow at a high speed, and the competitive advantage in the industry segment is highlighted.
The company's 21H1 realized revenue of 1.733 billion yuan (the same as YOY+12.18%, below), realized net profit of 255 million yuan (+ 58.64%), and deducted non-return net profit of 219 million yuan (+ 26.60%).
On a quarterly basis, the revenue and growth rates of 21Q1 and Q2 are 896 million (+ 13.72%) and 837 million (+ 10.59%), respectively, and the corresponding net profits are 129 million (+ 61.08%) and 127 million (+ 56.23%), respectively.
In terms of the number of channels, 21H1's overall number of direct channel stores reached 1675, a decrease of 50 compared with the beginning of the year, including 1367 joint venture counters, 23 fewer than at the beginning of 21, and 303 self-leased stores, 27 fewer than at the beginning of 21. Objectively speaking, the company's overall offline channel is in the stage of reduction and adjustment, and the company continues to withdraw inefficient stores, strengthen image upgrading, and improve store efficiency.
The profit of the terminal has increased significantly, and the efficiency of cost control has increased steadily.
The overall gross margin of 21H1 is 69.15% (+ 1.85pct), the net return to mother is 14.73% (+ 4.31pct), and the overall gross margin of 21Q2 is 67.16% (+ 0.47pct), and the net return to home is 15.11% (+ 4.42pct).
The 2021H1 sales / management / R & D / financial rates are 42.07% (+ 0.62pct), 7.08% (- 1.15pct), 2.88% (- 0.28pct) and 0.39% (+ 0.38pct) respectively, and the overall cost efficiency is steadily increasing. The increase in the company's sales expenses is mainly due to the increase in sales expenses driven by the company's operating income; the increase in management expenses is mainly due to the existence of share payments; the increase in financial expenses is mainly due to the implementation of the new lease standard in 2021, and the interest expense on lease liabilities is included in the financial expenses; the increase in R & D expenses is mainly due to the corresponding reduction in the company's salary expenses and the influence of a low base under the influence of 2020H1 COVID-19 epidemic.
Inventory turnover efficiency continues to improve, cash flow performance is outstanding
The company's 21H1 inventory reached 945 million yuan, a decrease of 5.11% over the same period last year, and the corresponding inventory turnover days was 317.97 days, a decrease of 60.98 days compared with the same period last year. Objectively, the business scale of 21H1 company continued to grow, while the inventory scale remained stable, and the inventory turnover efficiency of the company significantly improved.
The net cash flow of the company's 21H1 operating activities reached 434 million yuan, an increase of 7.38% over the same period last year. The increase in net cash flow was mainly due to the increase in sales rebates driven by the growth of sales revenue of 21H1 Company.
The company has a multi-brand matrix that integrates women, men, children, functions, middle and high-end underwear market segments, and has achieved effective coverage of the close-fitting clothing market, with solid brand barriers.
The advantage of omni-channel layout is outstanding, the operation quality of stores continues to improve, online focus on private domain traffic development, business efficiency is expected to continue to improve. Multi-brand and multi-faceted marketing is effective and has a broad space for long-term growth.
To maintain the profit forecast and maintain the "buy" rating, we expect the company's return net profit from 2021 to 2023 to be 5.42,6.53 and 783 million yuan respectively, with corresponding EPS of 1.35,1.63,1.96 yuan and 20.30X, 16.85X and 14.04X respectively.
Risk tips: the growth of labor expenditure and store operating costs is higher than expected; the growth rate of terminal sales slows down and so on.