Prudent guidance with large upside opportunity
? FY21 revenue was Rmb22.6bn, up 56.1% yoy (1H21 and 2H21: 65% and 50% yoy),
and net profit was up 136% yoy to Rmb4bn (1H21 and 2H21: 187% and 102% yoy),
above our expectations, because of a stronger top line and higher margins.
? We expect FY22F top-line and earnings growth of 19% and 15% yoy, respectively,
given the uncertainties of the pandemic situation and domestic consumption, and
FY22F gross margin to possibly drop by 0.8% pt due to cost pressure.
? Management said 1Q22F retail growth was better than that in 2H21 and
conservatively expects 2Q22F revenue to grow by mid-single-digits yoy because of
last year’s high base.
? Reiterate Add with a new DCF-based TP of HK$120.