Beijing Caishikou Department Store (605599) 国信证券·2024-05-28 13:02Investment Rating - The report assigns an "Outperform" rating to the company with a valuation range of 16.3-18.13 RMB per share [44][46] Core Views - The company is a regional leader in gold jewelry with strong brand recognition in North China, particularly in Beijing [5][12] - It benefits from rising gold prices and increasing consumer demand for risk-hedging investments [4][58] - The company's full direct-sales model and rapid e-commerce growth provide significant expansion potential [13][42][58] - With gold prices expected to remain on an upward trend, the company's investment gold business and flexible hedging strategies will continue to drive performance [58][144][145] Revenue Structure - In 2023, precious metal investment products accounted for 53.67% of revenue, up 1.78 percentage points YoY, reaching 8.884 billion RMB (+55.79% YoY) [4] - Gold jewelry contributed 37.21% of revenue, reaching 6.159 billion RMB (+54.11% YoY) [4] - Other product categories include precious metal cultural products (6.7%), diamond/jade jewelry (1.3%), and joint venture commission income (1.05%) [4] Regional Performance - North China remains the core market, contributing 87.2% of 2023 revenue, with Beijing alone accounting for over 50% [5][12] - The company is expanding nationally, with sales outside North China growing 165.88% YoY in 2023 [5] - New stores have been opened in Xi'an, Suzhou, and Baotou, with significant sales growth in these regions [5][136] Channel Strategy - The company operates 87 direct-sales stores as of 2023, generating 13.311 billion RMB in sales (80.48% of total sales) [13] - E-commerce sales reached 3.017 billion RMB in 2023 (+105.1% YoY), accounting for 18.24% of total revenue [42] - The company has 17 online stores across major platforms and has actively developed live-streaming sales [42] Financial Performance - 2023 revenue reached 16.552 billion RMB (+50.61% YoY), with net profit of 706.79 million RMB (+53.61% YoY) [23][45] - The company achieved a 32.8% CAGR in revenue from 2020-2023, outperforming peers [25] - Gross margin was 10.68% in 2023, higher than competitors focused on gold products [30] Industry Analysis - China's jewelry retail market reached 841.3 billion RMB in 2023, growing 10.25% YoY [58][114] - Gold products accounted for 78.8% of sales in 2023, up from 76.7% in 2021, driven by rising gold prices and consumer preference for value-preserving assets [89] - Online jewelry sales reached 339.8 billion RMB in 2023 (+40.3% YoY), but online penetration remains low at 10.2% compared to 32.9% in the US [125][152] Competitive Advantages - Strong brand recognition as a "China Time-honored Brand" and "China's First Gold Store" [131] - Unique "museum + store" model in its flagship Beijing store, which generated 8.788 billion RMB in 2023 sales [12][158] - Comprehensive product portfolio covering investment gold, jewelry, and cultural products [53] - Advanced digital capabilities with 3.43 million registered members and AI-assisted design platform [160][174]