NanJi E-Commerce(SZ:002127) Guohai Securities·2025-04-11 15:18Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is undergoing a transformation into a national brand, focusing on brand licensing and a diverse product matrix, including various clothing categories and home goods [4][6]. - The rise of "affordable alternatives" is noted, with consumers increasingly valuing cost-performance ratios, leading to a shift towards domestic brands [4][40]. - The company has established a strong national presence and industry experience over two decades, enhancing its brand image through the introduction of a light luxury line [55][50]. Summary by Sections Company Overview - The company, originally known as Nanji E-commerce, transitioned to a brand licensing model in 2008 and has since built a diverse brand portfolio, including well-known names like Nanji Ren and Cardin Crocodile [6][4]. - The company has faced challenges since 2021 due to intensified competition and changes in e-commerce dynamics, impacting its performance [18][4]. Brand Strategy - The core brand matrix includes Nanji Ren, Baijiahao, and Cardin Crocodile, with a focus on providing high-quality, affordable products [28][4]. - The company has shifted its management focus from product-centric to customer-centric, enhancing supply chain control and brand positioning [32][34]. Market Trends - The report highlights the growing trend of "affordable alternatives," with a significant portion of consumers expressing a preference for cost-effective domestic products over international brands [46][40]. - The competitive landscape in the domestic apparel industry is described as intense, with high barriers to entry for new brands [47][40]. Financial Projections - Revenue forecasts for 2024-2026 are projected at 3.23 billion, 4.91 billion, and 6.19 billion yuan, respectively, with expected growth rates of 20%, 52%, and 26% [67]. - The company is anticipated to return to profitability in 2025, with net profits projected at -26 million, 343 million, and 678 million yuan for the years 2024, 2025, and 2026, respectively [67][68].