Core ideas:
The company held a press conference on the redefinition of lightweight down jacket in Shanghai on September 21. In view of the lack of change and innovation faced by the lightweight down jacket in the market, the version is too basic to meet the increasingly personalized aesthetic needs of consumers and other pain points, the company, as the industry leader, has carried out bold innovation on the lightweight down jacket. The company integrates classic fashion items such as sweaters and knitting with down innovation, making an organic combination of classics and fashion, function and beauty, breaking the immutable situation of traditional down jackets. Due to the differences in shrinkage, color fastness and fabric extension between different materials, the splicing is very difficult, the company has made hundreds of attempts, and finally broke through various difficulties to achieve a richer style selection. In addition, in order to break through the traditional light down jacket immutable horizontal and vertical line design, the company is involved in art quilting design with abstract geometry and art graphics. In addition to the breakthrough and innovation in design, the company redefines the lightweight down jacket through innovative multi-layer thermal insulation air layer fabrics, ultra-light bare skin fabrics, internationally certified high quality velvet, German defense drilling technology and intelligent cold protection technology.
We are optimistic about the company's peak sales in fiscal year 2023. First of all, through product innovation, the company can bring better product experience to consumers, increase the value of products to consumers, and continue to win the favor of consumers. Secondly, the overall domestic epidemic situation shows a stable downward trend, with the company's products gradually entering the peak sales season, which is good for the company's product sales. Finally, in 2021, the company launched the new three-year strategy of the world's leading down jacket experts, adhering to the brand-led development model, focusing on brands, channels, products, retail, supply chain and other comprehensive systems. And in recent years, the company has launched equity incentives to employees and independent third-party consultants to further mobilize internal and external resources and jointly promote the company's sustained and high-quality development in the future.
Profit forecast and investment advice. It is estimated that the EPS of the company in fiscal year 23-25 is 0.23,0.28,0.33 yuan per share. The current price corresponds to only 15 times PE in fiscal year 23. With reference to the average valuation of comparable companies, the company is given 22 times PE in fiscal year 23, with a reasonable value of HK $5.62 per share, maintaining a "buy" rating.
Risk hint. The risk of repeated domestic epidemic; the risk of business; the risk of impairment of goodwill; the risk of exchange rate fluctuations.