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非凡领越(00933.HK):业绩扭亏为盈 品牌鞋服业务启航

Extraordinary Leadership (00933.HK): Performance turns losses into profit, brand footwear business sets sail

浙商證券 ·  Aug 20, 2023 00:00

Main points of investment

Special leader released 23 interim report: performance turned from deficit to profit, Clarks combined table led to footwear business revenue volume 23H1 operating income of 5.44 billion Hong Kong dollars (+ 620.9%), single Q2 income of 2.43 billion Hong Kong dollars (+ 555.1%), revenue growth rate is higher than the company acquired 51% stake in Clarks global business in 2207, 23H1 Clarks brand contributed income of 4.67 billion Hong Kong dollars, 22H1 Clarks did not merge. 23H1 gross margin 45.8% (+ 12.5pp), single Q2 gross margin 47.1% (+ 15.0pp). 23H1 accounts for HK $369 million (+ 21.0%) of joint venture and joint venture income, and Q2 accounts for HK $263 million (+ 59.9%) of joint venture and joint venture income. The net profit of 23H1 is HK $132 million, reversing losses, and the net profit of Q2 alone is HK $105 million, reversing losses.

Multi-brand footwear business: brand footwear business set sail, Clarks combined table to drive the revenue volume income end, 23H1 brand footwear business realized income of 5.18 billion Hong Kong dollars (+ 952.0%), single Q2 realized income of 2.29 billion Hong Kong dollars (+ 806.7%), mainly contributed by Clarks23H1 income of 4.67 billion Hong Kong dollars.

On the profit side, the 23H1 brand footwear business division lost HK $150 million, a loss of HK $97 million compared with 22H1, and a loss of HK $200 million for Q2 alone, mainly due to a lower-than-expected recovery in consumption.

Clarks brand: revenue performance is in line with expectations, profit volume is expected to achieve revenue of HK $4.67 billion, accounting for 85.8% of total revenue, 23H1 is the main engine of revenue growth, the first half of the year is the off-season of the Clarks brand, and the second half of the year coincides with the homecoming season and Christmas season.

The future revenue and profit can be expected: the expansion of China is expected. After the acquisition of Clarks by 22max 07, the company continues to increase its size in the Chinese market. The first store in China, the middle and high-end trendy brand Clarks Originals, has entered Taiguri, Sanlitun, in Sanlitun. Product innovation is expected. 23amp 06 employs international well-known designer Martine Rose (who has worked with Nike to create popular styles Nike Air Monarch IV and Nike Shox MR4) as the first guest creative director, responsible for the first quarter of SS24 product design, related products will be launched simultaneously in the global market in March 24; 23amp 03 Clarks cooperates with Li Ning Co. Ltd. to enhance the brand's sports fashion attribute.

Bossini.X and bossini.X brand: optimization of bossini.X channel, improvement of operation quality of Bao Li Dragon, the number of new brand bossini.X 23max 06 stores exceeds 120, which is about 30 fewer than that of 23Unix 03. Affected by the slow recovery of consumption, it closes some inefficient stores, improves operational efficiency, and its performance is temporarily under pressure. We believe that bossini.X deepens brand awareness through strategic cooperation with the national cycling team and community marketing. With the recovery of passenger traffic in the future, cycling service will open the ceiling of scale growth and growth is expected.

The operation quality of the main Bashi Dragon brand has improved significantly. According to the bossini (0592.HK) announcement, the net profit of 23H1 bossini is still 40% less than the non-parent net profit of 22H1 deduction under the unfavorable conditions of the new brand bossini.X, mainly benefiting from the improvement of gross profit margin.

LNG and Amedeo Testoni: positioning light luxury and luxury respectively, steady growth under brand accumulation LNG positioning light luxury, through the continuous launch of LNG joint products to enhance brand voice; Amedeo Testoni, as an international well-known luxury brand for a century, has grown steadily under brand accumulation.

Sports experience business: benefiting from the smooth holding of sports events after the relaxation of travel restrictions, profits significantly improved the revenue side. 23H1 sports experience business realized income of 270 million Hong Kong dollars (+ 0.8%) and Q2 alone realized income of 140 million Hong Kong dollars (+ 21.2%).

On the profit side, the profit of 23H1 Sports experience Business Division is 17 million Hong Kong dollars (+ 167.2%), and the profit of single Q2 is 14 million Hong Kong dollars. With the opening of travel and the smooth holding of sports events, the profitability of sports experience business has been significantly improved.

Profit forecast and valuation

23H1's profit turnround shows a positive signal, and the loss reduction of multi-brand shoes and clothing business has gradually entered an upward stage. The company is expected to achieve a net profit of HK $5.5 billion, 8.5 pm and 1.13 billion Hong Kong dollars in 23-25, compared with the same period last year. The closing price of PE on August 18 is 32% of that of the same period last year. Considering the expansion of various brands under the management of the company in the offline core business area and the development in the Chinese market, the company is expected to restart the depth of growth and maintain the "buy" rating.

Risk hint

The growth of the same store is not as expected; the progress of expanding the store is not as expected; the risk of multi-brand business failing to coordinate effectively

The translation is provided by third-party software.


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