Nine Mu Wang men's pants expert, strategic change set out again. Founded in 1989, Jiumu King ploughs the men's pants track and has become a leading expert in men's pants sales. The company has three major brands: Jiumuwang (accounting for about 90% of revenue), Korean quality fashion men's wear ZIOZIA, and fashion clothing FUN.

In 2020, Nine Shepherd King launched a strategic change, focusing on the core advantage categories of men's trousers, comprehensively rejuvenating from the brand end, product end, channel end and marketing end, but the reform effect was suppressed under the influence of the epidemic in 2020-2022, and the reform results in 2023 are gradually showing.

To mark the century-old brand Levi, the men's pants collection store model can be expected. Levi, as a founding brand of jeans, after more than 170 years of development, is still one of the largest brand clothing companies in the world. Currently, Levi has about 50,000 retail outlets in more than 110 countries around the world, with FY2023 revenue of US $6.2 billion and net profit of about US $600 million. We review and study its development process, which is mainly divided into the following four stages: the foundation period of entrepreneurship (1853-1945), the period of rapid expansion (1946-1980), the period of going out to sea + adjustment of rubbings (1981-1996), and the upgrading period of brand innovation (1997-present). From its practical experience, we can see that the reasons for the successful promotion of trouser collection stores are: 1) stable quality control, rich version, convenient selection and purchase, to meet the needs of consumers; 2) relatively off-standard products, fashion shelf life is long.

The strategic change has been fruitful, and the deep precipitation has led to the rebound of advantages. In September 2020, the company cooperated with Junzhi to refocus on Jiumu King brand and superior men's trousers category. 1) brand end: focus on men's pants category, shrink product matrix, strengthen "men's pants = Nine Shepherd King" brand awareness; 2) product side: stick to product quality. At the same time, streamline SKU, create a series of products according to the scene, including business, leisure, denim, light outdoor, designer joint series, etc., launch "small black pants", "light pants", "business outdoor pants" and other popular style products; 3) channel side: step by step upgrade the new "Ten Generation Store" to enhance the proportion of shopping malls, Ole and high-end channels. Professional trouser models are eye-catching in the product display and highlight the young brand image in decoration. At the same time, strengthen the construction of online private domain, the proportion of online income is expected to further increase. 4) Marketing end: in the initial stage, through large-scale advertising, international fashion week catwalk and other activities to improve the brand voice. Follow-up to carry out fine marketing to improve the efficiency of delivery. With the recovery of terminal passenger flow and the increase of business demand in 2023, the new stores and new image of Jiumuwang attract consumers, and the terminal flow performance is beautiful.

Investment suggestion: as the first brand of men's trousers, Jiu Mu Wang is expected to renovate the brand. With the rejuvenation of the product end and the continuous introduction of single popular styles, it is expected to continue to attract and expand the consumer base; the channel side continues to upgrade ten generations of stores, the terminal store efficiency is improved, we are optimistic about its future growth. The company is expected to make a net profit of 306 million yuan and 488 million yuan in 2025, respectively. Its current share price is 11.58 yuan, and its corresponding valuation is 22-17-14, giving it a "buy" rating.

Risk tips: sales fall short of expectations, market competition intensifies, sales of new products fall short of expectations, etc.