Core ideas:
Rong Mei shares: online clothing brand retail company, steady growth in performance. The company is mainly engaged in middle and high-end women's wear, is a well-known online clothing brand retail company. From 2017 to 2021, the company's revenue showed a steady growth trend, with revenue of 872 million yuan (YOY+2.46%) in 2021 and net profit of 163 million yuan (YOY+0.38%). The slowdown was mainly due to the high base caused by the epidemic in 2020; the epidemic affected local regional logistics in the second half of 2021; and the warm winter affected sales in the peak season.
Deep ploughing e-commerce platform to create a high-level new, small single fast reverse supply chain and information advantages. (1) clear target customers, positioning 25-45-year-old urban women, with high credit, the number of fans and customer reputation and other advantages. (2) the ability of planning and design is outstanding, with a high new frequency three times a week and an annual average of nearly 4000 high SPU, effectively enhancing customer stickiness. (3) to build a flexible supply chain system and realize a new Internet retail model. (4) online vertical layout, information system effectively helps operational efficiency, has formed a full business process information management system, in line with the company's online retail business model.
Be optimistic about the future development of the company. The company plans to use the publicly raised funds for four major investment projects, among which the "Building a Modern Manufacturing Service Base Project" is beneficial to (1) enhance the flexible production capacity and improve the company's comprehensive operation level; (2) enhance the company's own production capacity, strengthen the flexibility of the supply chain to ensure the advantage of small orders and fast counter; (3) ensure the speed and accuracy of information technology in all aspects of warehouse management, and reasonably control inventory. The "offline exhibition center project" will help the company directly reach consumers, open up the market, enhance brand image and expand brand awareness.
Profit forecast and investment advice. It is estimated that the EPS of the company from 2022 to 2024 is 0.80,0.89 and 1.11 yuan per share respectively. With reference to comparable mid-and high-end women's wear companies and comparable e-commerce companies, we give the company an PE valuation of 27 times in 2022, corresponding to a reasonable value of 21.53 yuan per share, covering it for the first time and giving it an "overweight" rating.
Risk hint. The risk of intensified market competition, the risk of outsourcing production management, and the risk of inventory price decline.