Event
The company released the 2021 mid-term report: the company's 2021H1 achieved revenue of 1.733 billion yuan compared with the same period last year + 12.18%, net profit of 255 million yuan, + 58.64%, deducting 219 million yuan of non-return net profit, + 26.60% of the same period last year. The net cash flow of business activities was 444 million yuan, + 7.38% compared with the same period last year.
Brief comment
Founded in 1981, the company mainly produces intimate clothing such as underwear, home service and warm clothing, and has brands such as admiration, men's admiration, children's admiration, Lankavan, love beauty and so on, to achieve full coverage of family underwear consumption. According to Euromonitor statistics, the company is currently the domestic lingerie brand company with the highest market share, with a market share of 2.0% in 2020.
After the epidemic, the company's offline channels (direct marketing, distribution) to achieve rapid growth, e-commerce channels have declined. In the first half of the year, the revenue of the company's direct marketing, distribution and e-commerce channels was 11.11,0.95 and 459 million yuan respectively, with year-on-year changes of + 29.5%, + 52.5% and-18.1%, respectively, and gross profit margins of 75.2%, 67.6% and 61.8%, respectively, with year-on-year changes of + 0.0%,-0.9% and + 2.5PCT.
From the point of view of sub-brand, love (including Mulan), Mr. love, admiration for children, Lankavan are growing rapidly. The revenue in the first half of the year was 7.37,3.16,2.12 and 81 million yuan, up 17.2%, 16.2%, 38.2% and 32.5% over the same period last year, and the gross profit margin was 72.5%, 77.6%, 72.3% and 81.8% respectively, with year-on-year changes of 1.7,0.9,-2.2 and-0.5PCT. Revenue from Ami and other brands was 1.47 yuan and 227 million yuan, down 3.6% and 14.8% from the same period last year.
The company continues to streamline the number of stores. By the end of the first half of the year, the number of terminal stores of the company was 2103, 53 less than that at the end of 20 years, including 1675 direct operation and distribution terminals, 50 and 4 fewer than at the end of 20 years. Among the direct operation terminals, the number of exclusive counters, self-operation (leasing) and self-operation (free property) were respectively 1367, 303,5, 23, 27, 0 less than at the end of 20 years.
Gross profit margin and net profit margin have increased. The company's gross profit margin in the first half of the year was 69.2% (+ 1.9pct), which mainly benefited from the increase in gross profit margin of e-commerce channels, with a net profit rate of 14.7% (+ 4.3pct). The rates of sales, management, finance and R & D expenses were 42.1%, 7.1%, 0.4% and 2.9% respectively, with year-on-year changes of 0.6%,-1.1%, 0.4% and-0.3PCT. The increase in the net interest rate was greater than the gross profit margin, mainly due to the loss of fair value changes and asset impairment losses of 110 and 4.3 million yuan in the same period last year, accounting for 0.5% and 2.0% of the total.
Profit forecast: the company's revenue from 2021 to 2023 is expected to be 36.3,40.4 and 4.68 billion yuan respectively, an increase of 8.0%, 11.2% and 15.8% respectively, and the return net profit is 4.93,5.32 and 585 million yuan respectively, an increase of 10.9%, 7.9% and 10.0% respectively. The corresponding PE is 22 times, 20 times and 18 times, respectively, and the "Buy" rating is given for the first time.
Risk hint: the competition in the underwear industry is intensified, and the expansion of new brands is not as expected.