Collis (603808): Unique Brand Matrix Caters to Era of Brand Scarcity, Underestimates Steady Growth, Highlights Investment Value

Collis (603808): Unique Brand Matrix Caters to Era of Brand Scarcity, Underestimates Steady Growth, Highlights Investment Value

Key Points of Investment In the era of brand homogeneity, Gulisi’s distinctive multi-brand layout demonstrates value.

(1) The concentration of mainstream channel brands has increased, and the development pressure of emerging brand channels has broken through.

Due to current expectations, the merger of shopping malls with a high concentration of people requires the drainage of international big names, so that in the face of clothing brand choices, most will choose the split track leader or the brand belonging to the big group that can pay high rents.

This makes emerging brands have their own unique tonality in terms of product power and style, but in the early stages of development, their rent affordability was weak and it was difficult to emerge in alternative channels concentrated by young consumers.

(2) The brand layout of Glixi has distinctive features, continuously promotes the expansion of new brands for the Group’s strengths, and continues to provide new choices for 武汉夜网论坛 young consumers.

Since its launch, Golix has continuously acquired high-quality brands in various styles. Currently, the Group has 7 sub-brands, which form a multi-attribute brand matrix covering fashion, tide brand, light luxury, and Internet celebrity.

At present, the self-portrait attention newly acquired by IRO and the company is rapidly increasing.

These uniquely designed brands that meet the needs of young consumers are expected to surpass Golix’s channel and supply chain resource advantages to provide consumers with more new options offline.

In the era of homogenization of existing channel brands, the concentration of young consumers will be realized, representing the rapid expansion of shopping centers in the future.

(3) Baiqiu’s e-commerce has grown rapidly, 北京夜网 providing more high-quality brands to consumers online and in new channels.

Baiqiu e-commerce 19H1 GMV growth rate exceeded 100%. As a Tmall six-star operator, Baiqiu’s current total services include more than 50 internationally renowned brands such as Maje, Sandro, Clarks, Onitsuka Tiger, PANDORA, TUMI, BALLY, etc.With the trend of younger consumption of mid-to-high-end products, we think Baiqiu is expected to continue to grow rapidly.

Grace’s 19H1 performance is dazzling, and future growth is expected.

1) The main brand of Collis: In the first half of the year, the number of stores shrank by 16 compared with the same period of the previous year, and the revenue increased by 7%, and the average store revenue increased by 12.

8%.

2) Ed Hardy: In the first half of the year, revenue decreased by 6.

2% to 2.

32 ppm, of which the second quarter quarter is mainly related to supplementary dealer replacement policy and channel adjustment.

3) Laurel: Revenue growth in the first half of the year 3.

8% to 54.22 million yuan, of which the growth rate of Q2 income has been positively increased by 23.

4%, same-store growth reached double digits, and the performance in June was particularly impressive; 4) IRO: significantly higher than expected, business income outside China increased by 32% to 3.

10,000 yuan, China’s business revenue increased by 208% to 37.77 million yuan, a 32% increase over the same store, showing explosive growth potential.

Profit forecast and investment suggestions: In 2019, the company ‘s main brand, Gulisi, plans to open 30 new stores (Popular line 2020 spring and summer ordering will have a better response), Laurel / IRO / Knott plans to open 12/8/5/2 new storesEd Hardy focuses on improving the efficiency of the main series of single stores, while the VT brand will continue to improve consumer portraits and product youthfulness and age-free adjustments based on the existing volume. Recently, it has established a joint venture with the British brand self-portrait to operate the brandMainland China business.

As a fashion group with a clear brand matrix plan, we believe that the company’s performance is expected to maintain stable growth under the rapid growth of new brands such as IRO and self-portraits.

It is expected that net profit attributable to mothers will increase by 18 in 19/20/21.

6% / 22.

0% / 20.

6% to 4.

3/5.

3/6.

400 million, PE 10.

9/8.

9/7.

4 times, considering the current undervaluation to maintain the “Buy” rating.

Risk warning: terminal sales are cold, and multi-brand collaboration is less than expected.