Main points of investment
Event: with the further control of the epidemic across the country, Hainan Province officially announced the relaxation of the entry and exit policy to the island. The third store of Huayang joint venture LAOX SELECT officially opened in Sanya, Hainan Province on May 25, 2022; the company's co-artist Yu Wenwen will follow up the live broadcast of duty-free products with cargo and sea travel, helping to revive consumption in the post-epidemic era.
We will promote the new retail business of taxation and help to promote the recovery of tourism consumption in the post-epidemic era. In exploring the new online duty-free retail scene, the company set up a Hainan Le Shishi joint venture to assist Hainan Travel Group in the overall layout of the online duty-free service system while importing, distributing and retailing duty-free goods: 1) sign a cooperation agreement: in January 2021, the company and Hainan Travel signed a "Strategic Cooperation Framework Agreement" to promote the development of new business type and the new mode of tourism consumption in Sanya. 2) set up a joint venture company: in April of the same year, the company signed a strategic cooperation agreement with Hainan Travel to invest in dutiable goods and Le Hongyi, and the three parties set up a joint venture company in Hainan, Hainan Le Shishi supply chain Management Co., Ltd., the company assists Hainan Travel to lay out the online duty-free service system and reconstruct the product R & D ideas and scene construction.
On December 28, Hainan's first LAOXSELECT store opened in Sanya Sea Travel Duty Free City; 3) opened the third store of LAOXSELECT: at this stage, the national epidemic has been further controlled, the company opened its third store of LAOXSELECT in Sanya on May 25, 2022, featuring 3C, daily chemical, snacks, toys, drinks and other good Japanese products. At the same time, with the outstanding performance of "braving the Wind and waves season 3", the company's co-artist Yu Wenwen will bring cargo sea travel duty-free products in the live broadcast room, which is expected to enable online marketing and complete the introduction of traffic.
Give full play to the advantages of resources and technology to open up the "offline + online" dual channels. 1) data resources: the company has planned and implemented a large number of marketing activities for customers for many years, and has accumulated rich consumer characteristics, behavior and feedback data; 2) customer resources: the company has about 100 medium and large customers, and long-term cooperative customers include The Estee Lauder Companies Inc, OPPO, Dongfeng Nissan, Mengniu, JD.com, etc., the annual cooperation amount has maintained a steady increase, laying a good foundation for development. 3) Media resources: the Internet media cooperated by the company include all domestic well-known Internet companies, such as Tencent, Baidu, Inc., Sina, NetEase, Inc, etc., the cooperation between the two sides is long and stable, and the amount of cooperation is large. At the same time, in the post-epidemic era, e-commerce platform has risen in an all-round way, and live e-commerce has become the norm. With the further control of the epidemic, while broadening the offline sales channels, the company is expected to give full play to the rich experience and resources and technology in the Internet and e-commerce fields, assist sea brigades in the overall layout of the tax-free online service system, and complete "offline + online" accurate services, and the follow-up performance is worthy of attention.
Profit forecast and investment advice. It is estimated that the net profit from 2022 to 2024 will be 300 million yuan, 430 million yuan and 490 million yuan respectively, and the corresponding PE will be 14 times, 9 times and 8 times respectively. The company is a well-known Internet advertising and marketing company, "meta-universe + marketing" helps virtual human IP realize its business, and the new duty-free retail business is expected to help recover consumption in the post-epidemic era and maintain its "buy" rating.
Risk hint: market competition aggravates risk, new retail business development is less than expected risk, industry policy risk.
