Gelixi (603808): Light luxury flagship multi-brand operation is getting better

Gelixi (603808): Light luxury flagship multi-brand operation is getting better

Core point of view Colyss is a leading company in developing women’s wear in developing countries. The company is grouped and a multi-brand operation pattern has been gradually formed. Multiple brands are in the growth stage. Channel expansion is expected to bring steady growth in company performance.

It is expected that the EPS of Collix for 2019-2021 will be 1.

39, 1.

65, 1.

94 yuan / share, the first coverage is given an “overweight” rating.

The group operation mode meets the pain points of the industry. Brand operation is the core competitiveness. LVMH Group, Kering Group, Richemont Group and other international luxury giants are multi-brand, group operation companies.

We believe that the mid-to-high-end women’s wear industry also follows the same logic: mid-to-high end consumer prices are high, and target users have very high requirements for personalization, and the upper limit of the size of a single brand is obvious.

In essence, fashion trends change rapidly and the risk potential of a single brand operation.

Therefore, through the platform-based multi-brand operation, it is possible to both expand the size of the enterprise and reduce fluctuations caused by changes in demand.

Brand selection and brand operation capabilities are the core competitiveness of a multi-brand operation group. Mid-to-high-end women’s clothing needs to grasp the changing fashion trends in a timely manner. Therefore, a complete system for brand image creation and product design and development is needed.

Grace brand has outstanding nurturing ability, and the main brand ELLASSAY is a modern urban woman who is in the forefront of high-end women’s fashion, elegant, and stresses on the quality of life.

After years of operation, ELLASSAY has ranked among the first echelon of high-end and high-end women’s wear. According to the statistics of the China Business Information Center, ELLASSAY has ranked in the top 10 of high-end women’s occupation for 9 consecutive years from 2010 to 2018.

As of the end of 2018, ELLASSAY has 159 directly operated stores and 153 distribution stores.

The success of the main brand ELLASSAY proves the company’s 淡水桑拿网 comprehensive capabilities in apparel design, brand building, supply chain management, channel operations and other aspects.

The multi-brand matrix has been preliminarily perfected, and the group operation has gradually entered into a good environment. Galisi will build a high-end fashion brand group with international competitiveness as the company’s strategic goal.

After landing in the capital market, the company has accelerated the pace of expansion. From 2015 to 2018, Collix has acquired Laurèl, a German high-end womenswear brand, EdHardy, a light luxury brand in the United States, IRO, a light luxury brand in France, and VIVIENNE, an independent designer brand. TAM and Jean Paul Knott, the high-end ready-to-wear brand of Belgian designers, have gradually improved the brand matrix, which will help the company to 杭州夜生活网 further enhance its market competitiveness and market share.

For the first time, the groupization of Golix, which has given an “overweight” rating, has gradually formed a multi-brand operation pattern. Multiple brands are in the growth stage. Channel expansion will bring steady growth in company performance.

We expect that the Collision EPS for 2019-2021 will be 1.

39, 1.

65, 1.

94 yuan / share.

Reference company evaluation (compared company average PE estimate for 2019 is 12.

19 times), giving GELIX a 12-13 times PE estimate for 2019, corresponding to a target price range of 16.

64-18.

02 yuan, for the first time, give “overweight” rating.

Risk warning: Channel expansion is not up to expectations and downstream demand is sluggish.