Saiwei Times (301381) is mainly engaged in the cross-border brand export of high-quality and personalized fashion lifestyle products, and its sales channels include third-party e-commerce platforms such as Amazon, Wish, eBay, Walmart and vertical categories such as SheShow and Retrostage, among which the Amazon platform accounts for a relatively large proportion, which continues to promote the rapid growth of the company's revenue. Since 2016, the company has clarified the "branding" strategy, and has successfully incubated 4 brands of 1.5 billion yuan, more than 19 brands of 100 million yuan, and more than 70 brands of 10 million yuan. From 2019 to 2021, the CAGR of operating income was 390%, with a net profit CAGR of 1535%。
Cross-border e-commerce is booming, and the industry has broad prospects. In recent years, the scale of global e-commerce retail has grown rapidly, and the global retail e-commerce sales in 2020 will be 428 trillion US dollars, with an average annual compound growth rate of 21 from 2014 to 202035%, the penetration rate of foreign e-commerce is lower than that of China, and there is more room for development. Since entering the Internet era, cross-border export e-commerce has flourished with the advantages of China's first-class chain and the dividends of third-party centralized platforms, and has accelerated into a new stage of growth and diversification after the epidemic. In 2021, the scale of China's cross-border e-commerce exports will reach 139 trillion yuan, a year-on-year increase of 283%。Catalyzed by the epidemic, the penetration rate of e-commerce has increased significantly, bringing new opportunities for brand iteration, brand operation has become a future trend, the model of boutique brand sellers and independent station sellers on third-party platforms will be continuously verified, and the cross-border e-commerce industry is expected to usher in long-term development space.
The company continued to promote the brand strategy and comprehensively improved the ability of refined operation and management. The company continues to invest in brand strategy, R&D and design, procurement and allocation, warehousing and logistics, sales channels, global marketing, etc., and polishes its refined operation and management capabilities. In terms of branding, the company implements the "branding" business strategy of "multi-category and multi-channel", and successfully incubates a multi-level brand matrix. In terms of R&D, the company drives its business with comprehensive technology, and its existing technology empowers product research and development, production and procurement, warehousing and logistics, marketing and promotion, etc., to achieve digital and efficient operation. In terms of procurement allocation, the company has a first-class chain management center, which realizes systematic and refined control of the whole process through procurement ordering, return tracking, procurement planning, and first-chain integration. In terms of channels and marketing, based on the "branding" strategy, with the help of Amazon's brand transformation of cross-border e-commerce enterprises, the company's own brand awareness is expected to continue to increase, and at the same time, it actively expands emerging channels such as independent stations to help the company's revenue scale further expand. In addition, the company has invested in more marketing channels inside and outside the station, and continued to enhance brand awareness with refined and global marketing.
The company's first-class ability is high-quality and efficient to meet the diverse needs of consumers. The company continues to consolidate the core competitive advantages of rapid response, multi-category extension and first-class chain management, and meets the diverse needs of consumers with high-quality and efficient capabilities. In terms of response speed, the company has built an information closed loop that runs through product research and development, first-class chain, brand incubation and operation, and realized the full-link digital capability of cross-border retail. At the same time, the organizational structure of "small front-end + large middle platform" and "amoeba" has been laid out to achieve per capita benefits and market response speed. In terms of category extension, relying on the data precipitation and big data analysis system of users in different sales regions over the years, the company is able to accurately match the needs of users in different regions and build cross-platform global sales capabilities. In addition, relying on the ability of multi-level brand coverage and brand cross-category expansion, the company has strong multi-category extension capabilities. In terms of management, the company is based on the digital business management and cooperation system to achieve symbiosis and co-prosperity with the company. At the same time, the company has established a sound warehousing and logistics system and carried out third-party logistics services. In addition, the company developed a flexible clothing chain system, which effectively improves the company's production efficiency and shortens the production cycle.
Cinda said that as a leader in cross-border e-commerce, the company has a broad long-term growth space for brand development strategy, drives business development with technology, builds solid chain management advantages and category extension capabilities, and develops high-quality and efficient business. The projected revenue from 2023 to 2025 is 634.2 billion yuan, 828.1 billion yuan, 1087.4 billion yuan, a year-on-year growth rate of .3%, net profit attributable to the parent company was 44.7 billion yuan, 61.4 billion yuan, 85.5 billion yuan, a year-on-year growth rate of3%。The company's competitive advantage is obvious, the short-term performance is growing rapidly, and the long-term development space is large, so it is recommended to focus on it.
Guotai Junan said that the Ministry of Commerce proposed to cultivate new momentum for cross-border e-commerce and foreign trade, with a top-level design and intensive introduction of supporting policies in various places, which will ensure the healthy and orderly development of the industry. The company has configured a special team to contact new channels such as TikTok, Shein, Temu, etc., and actively study and test platform rules and traffic, hoping to promote the layout and benefit from the dividends of new channels. With the enhancement of scale advantages and brand premiums, superimposed cost reduction and efficiency increase, we are optimistic about the recovery of profitability. **The company's EPS from 2023 to 2025 is 083 yuan, 113 yuan, 152 yuan, the year-on-year growth rate was %, and the target price was 4268 yuan shares, maintain an overweight rating.
Reporter Liu Xiwei.