Event
The company released its semi-annual report of 2022: 22H1 revenue of 1.70 billion yuan /-1.9%, net profit of 151 million yuan /-40.9%, net profit of 121 million yuan /-44.7%, net cash flow of operating activities of 3.51 billion yuan /-19.2% (basic) of 0.38 yuan /-45.7% (weighted) of 3.39%/-3.51PCT.
In a single quarter, 22Q2 has revenue of 766 million yuan /-8.5%, net profit of 0.21 billion yuan /-83.6%, net profit of-0.04 billion yuan /-104.1%, net cash flow of operating activities of 139 million yuan /-26.2% (basic) of 0.05 yuan /-84.4%.
Brief comment
Offline channels dragged down by the epidemic year-on-year decline, e-commerce channel performance is eye-catching. The company's offline channels are mainly directly operated, and affected by the epidemic, the direct marketing and distribution of 22H1 achieved income of 9.83 yuan and 77 million yuan respectively, year-on-year changes of-11.6% and-19.4%, gross profit margins of 75.9% and 67.2% respectively, year-on-year changes of + 0.7% and + 0.1PCT. In terms of e-commerce channels, the company continued to promote the layout of third-party platforms such as Tmall, Vipshop Holdings Limited and Douyin, upgraded the official website structure and achieved rapid growth in the first half of the year. 22H1's e-commerce channel revenue was 556 million yuan, an increase of 21.2% over the same period last year, with a gross profit margin of 57.6%/-0.4PCT.
In terms of brands, 1) admiration, Mr. admiration and adoring children maintained a steady development trend under the epidemic, with income of 7.65,3.09 and 203 million yuan respectively in the first half of the year, an increase of 3.9%,-2.5% and-4.1% over the same period last year, gross profit margin of 70.3%, 76.8%, 70.1%, year-on-year changes of-1.2,-0.3,-1.3PCT 2) 22H1 is in the period of channel optimization and product polishing, and the high-end brand Lankavan is greatly affected by the epidemic. The income of Aimei and Lankavan is 1.09yuan and 68 million yuan respectively, down 25.8% and 15.2% from the same period last year, and the gross profit margin is 63.4% and 79.9% respectively, down 1.1% and 1.6PCT. 3) the revenue of other brands in the first half of the year was 233 million yuan, an increase of 2.5% over the same period last year, with a gross profit margin of 38.8%/-2.4PCT.
Continue to streamline offline stores, upgrade and renovate stores to help brands improve. By the end of 22H1, the company had 1985 terminal stores, 63 fewer than at the end of 21 and 171 less than at the end of 20. Among them, there are 1572 directly operated terminals, 64 fewer than at the end of 21 years and 153 fewer than at the end of 21 years. The company's brand continues to improve the image of new stores, in which the new image of admiration brand has covered 80 terminal stores and obtained positive market feedback, Aimei has completed 8 key channel image upgrading, admiring children launched 2.0 upgrade image and completed 15 key channel image upgrading, LA CLOVER launched 4.0 new image in June 22 to create a high-end underwear image benchmarking.
Launch Huxi, Yuyu and other new brands to improve the layout of sub-categories, diversified marketing to promote brand upgrading. In 2018 and 2021, the company successively launched new brands Huxi and Yuyu, which focus on inexpensive health intimate clothing and professional sports BRA, respectively, to improve the layout of the company's intimate clothing subcategories. Focusing on topics such as Lunar New year, Mother's Day and physical education, 22H1 launched a series of brand marketing activities such as "Happy Tiger", "hear my Heart" and "run like a breeze" to strengthen the company's brand image of high-end intimate clothing.
The increase in the share of e-commerce revenue led to a decline in gross profit margin, an increase in the rate of overlay sales expenses, and a year-on-year drop in net profit margin of 5.5PCT to 8.9%. The gross profit margin of 22H1 is 66.9%/-2.3pct, and the decrease is mainly due to the increase in the proportion of revenue from e-commerce channels (32.7%/+6.2PCT). The rates of sales, management, finance and R & D expenses are 46.6%, 7.3%, 0.1% and 3.3%, respectively, and the year-on-year changes are + 4.5%, + 0.2%,-0.3% and + 0.5PCT. 22H1's net interest rate fell 5.8PCT to 8.9%. 22Q2 gross profit margin 63.2%/-4.0PCT, net profit margin 2.7%/-12.5PCT.
Profit forecast: the company's revenue in 2022-24 is expected to be 34.6,38.6 and 4.25 billion yuan respectively, changing by-1.7%, 11.4% and 10.2% respectively, and the return net profit is 2.55,3.08 and 350 million yuan respectively, changing by-25.9%, 20.5% and 13.6% respectively. The corresponding PE is 26,21,19 times respectively. Maintain a "buy" rating.
Risk hints: weak consumption and increased competition in the underwear industry