Beigaofeng Capital invested 5% of the shares, introducing a team of former Alibaba Cloud chief scientists to digitally transform the industrial chain.
On March 4, Visions Holding, a company wholly owned by Beigaofeng Capital, founded by the former chief scientist of Alibaba Cloud, agreed to transfer 5% of the shares at a transfer price of 864 yuan/share, for a total of 186 million yuan. With the help of “technology+capital”, relying on the Industry 4.0 manufacturing platform, AI data intelligence technology is used to vertically raise the level of digitalization of the industrial chain and horizontally build an integrated service platform with extensibility and multi-category replication capabilities.
New intelligent manufacturing in the back office: Based on the advantages of Tianchuang fashion's entire industry chain layout, the digital level of the supply chain and the scalability of multiple categories is enhanced through the intelligent production capacity of Industry 4.0. On the R&D design side, the company uses terminal data to drive the accuracy of R&D design. Enterprise production iterates from the traditional B2C model to the C2M model; vertical digital and intelligent transformation in the production supply chain link improves productivity and flexible service levels in small batches and multiple batches. Therefore, we believe that by building a vertically digitized and horizontally expandable intelligent manufacturing support platform, the company will meet the needs of Tianchuang itself and more customers with poor back-office supply chain integration capabilities.
Zhongtai data system: It runs through all links in the front and back office industry chains, making the platform expandable. Take advantage of the North Peak team to provide low-level data support throughout the company's industrial chain and strengthen platform expansion capabilities. We believe that the potential of the China-Taiwan system to transform traditional industries has been verified through personalized and flexible customization iteration in the custom home furnishing industry, thus achieving rapid development far faster than the overall home furnishing industry.
New retail at the front desk: The company uses data to drive accurate marketing, meet the needs of consumers in different scenarios, and integrate the company's marketing resources. Furthermore, we believe that the mobile internet digital marketing expert Xiaozi Technology, acquired in '17, and the company can collaborate with each other, and that Beigaofeng Capital's data capabilities and Alibaba background can help the company integrate and strengthen its “new retail” capabilities.
The traditional footwear and apparel business has expanded into multiple brands and categories to create a fashion group. It has six major women's shoe brands, a men's own brand “MUST HAVE”, and represents the creative Italian fashion brand “O BAG”. The revenue of the 19H1 footwear business was 869 million yuan, -0.87% year-on-year, and Guimu's net profit was 66.9 million yuan, -27.11% year-on-year. Offline was greatly influenced by increased competition and consumer habits. Online channels developed rapidly. 19H1 achieved revenue of 100 million yuan online, an increase of 26.31% over the previous year, accounting for 18.38%. With the completion of the Wanzhou base and the help of the North Gaofeng team, it is expected that the future will upgrade to platform-based intelligent manufacturing services.
Xiaozi Technology is developing steadily and rapidly. The 2017-2019 performance promise not to be less than 65 million yuan, 84.5 million yuan, and 109.85 million yuan respectively, exceeding the performance promise in 17 and 18. The short video commercialization business began in 2019. The revenue of 19H1 increased 40.55% year-on-year, and the net profit of the mother returned to the mother was 54.22 million yuan, an increase of 16.66% over the previous year. 2020 will strengthen collaboration with Tianchuang and explore more innovative businesses.
First coverage, giving a “buy” rating. We expect the company to achieve revenue of 2,083 million yuan, 2,181 million yuan, and 2,482 million yuan respectively in 2019-2021; year-on-year increases of 1.5%, 4.7% and 13.8%, respectively; we expect to achieve net profit of 228 million yuan, 229 million yuan and 254 million yuan respectively in 2019-2021, up -5.74%, 0.41% and 10.69%, respectively. It is expected that in 2019-2021, the company will achieve EPS of 0.53/0.53/0.59 yuan respectively, and the corresponding PE will be 24.28/24.18/21.85 times respectively. The company was given 35 times the PE in 2020, corresponding to the target price of 18.55 yuan, covering the “buy” rating for the first time.
Risk warning: The results of the intelligent digital transformation of the industrial chain fell short of expectations; the impact of the epidemic exceeded expectations, affecting the company's main business; the new business development of Kid Technology fell short of expectations, etc.