Collision (603808) National Gold’s National Brand Rise Report Series 4-Collis: Light Luxury Group’s Leading Multi-Brand Integration is Mature

Home / Collision (603808) National Gold’s National Brand Rise Report Series 4-Collis: Light Luxury Group’s Leading Multi-Brand Integration is Mature

Collision (603808) National Gold’s “National Brand Rise” Report Series 4-Collis: Light Luxury Group’s Leading Multi-Brand Integration is Mature

The investment logic company is 青岛夜网 committed to becoming an internationally competitive light luxury brand group. “Endogenous 无锡桑拿网 growth of the main brand + mergers and acquisitions of new brands” has driven rapid growth: After more than 20 years of deep accumulation, the main brand ELLASSAY has been ranked among the top brands of high-end women’s clothing for eight consecutive years.The top 10, ranked 1st in 2018.

Since its listing, the company has continued to promote the international brand merger and acquisition integration strategy. Driven by the “star main brand + merger and acquisition integration international brand” strategy, the company’s performance has grown rapidly, and its 2015 revenue CAGR was 56.

8%, deducting non-attributed net profit CAGR is 43.


In Q1-Q3 2018, the company achieved revenue of 17.

36 trillion, +25 for ten years.

87%; net profit of non-attributed mothers2.

59 trillion, +23 a year.


In the past 3 years, the company has polished out a more successful “mature + growth + cultivation” multi-brand operation model: ①The main brand ELLASSAY is the group’s main mature star brand. Q1 in 2017 and 2018?
Q3 revenue was 9 respectively.

6.2 billion yuan and 7.

11 trillion, each year +20.

76% and +9.


②Growing brands include LAUREL, Ed Hardy and Ed Hardy X and IRO. The positive effects of mergers and acquisitions integration are gradually being transformed into the company’s high-speed growth engine.
Q3 revenue increased by +20.

30%, +20.

82% and +54.


③ Cultivate brands including VIVIENNE TAM and JEANPAULKNOTT, continue to promote brand integration, and expect future growth.

The profitability is basically stable, and the inventory turnover is extra healthy: The company’s restructuring gross margin is about 68%. Considering ① the channel structure of the main brand is continuously optimized, ② the domestic layout of the IRO brand is accelerating, ③ other new brands are gradually maturing, ④ the multi-brand integration strategy continuesWe believe that the company’s net interest rate is expected to remain stable.

In addition, the company’s inventory turnover has continued to improve since 2013. The inventory turnover days have decreased from 262 days in 2013 to Q1 in 2018?
237 days in Q3, showing the company’s continuous improvement in inventory control capabilities.

The global market is emerging with many large market value and multi-brand luxury goods groups. LVMH has a clear M & A philosophy to dominate the luxury market: under the guidance of the concept of “minimizing merger and acquisition costs + maximizing brand value after integration”, the LVMH integration rule can be summarizedTo: dig brand history, outline brand characteristics, find suitable designers to express brand genes, streamline sales channels and build market image.

Driven by the multi-brand M & A integration strategy, the market value of LVMH Group increased from 11 billion euros to 129.8 billion euros from 1989 to 2018, occupying a dominant position in the global luxury goods sector.

Investment suggestion: Collision’s group operation has achieved initial results. The coordinated development of multiple brands has become the company’s new performance growth engine. With the continuous and steady growth in performance, the company is also expected to achieve a valuation conversion from a single brand to a multi-brand platform.

It is expected that the net profit attributable to mothers will be 3 in 2018-2020.

6.2 billion, 4.

3 billion, 5.

110,000 yuan, the current market value corresponding to PE is 17x / 14x / 12x, the first coverage given a buy rating.

Risk Warning: Growth of mid- to high-end women’s clothing, multi-brand integration is less than expected, risk of goodwill impairment, and restricted stocks lifted

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