Since ancient times, scarce resources will be given high-value commodity attributes, gold is regarded as the first hardware, in addition to its own monetary attributes, the use value is also increasingly enlarged. As the younger generation has gradually become the main force of new consumption, the gold jewelry industry has also ushered in a new dawn, a number of established jewelers also have a new identity in the A-share market.

Since its listing in September this year, 605599.HK has also been paid more and more attention by the market, and the strength of state-owned time-honored brands is also being tested by the market.

With the disclosure of the three quarterly reports drawing to a close, Caibai also released a commendable report card.

The new store is beginning to show results, with revenue exceeding 7.2 billion yuan in the first three quarters.

According to the financial report, in the first three quarters of 2021, Caibai shares achieved a total revenue of 7.2 billion yuan, an increase of 48.71 percent over the same period last year. In the same period, the net profit returned to its mother was 266 million yuan, almost the same level as 263 million yuan in the same period last year. The operating income in the third quarter alone was 2.1 billion yuan, an increase of 21.93 percent over the same period last year. During the reporting period, the gross profit margin was 11.86%, down 2.53% from last year; in terms of expenses, R & D expenses increased significantly, with the company's R & D expenditure in the first three quarters totaling 3.25 million yuan, an increase of 324% over the same period last year.

According to the data reported in the third quarter, Caibai increased its investment in research and development and maintained steady growth in its performance. according to the announcement, the increase in sales revenue was mainly due to the company's increased store development after the recovery of the epidemic.

In terms of the number of offline stores, Caibai Co., Ltd. added six new direct stores across the country in the third quarter, including four in Beijing and one in Hebei and Jiangsu provinces.

Judging from the company's past plans, the company has long attached importance to the stable development of offline stores. As the first gold company in Beijing, the company takes Beijing as the core and plans to open 19 gold jewelry stores in North China and key domestic cities in the future.At present, the company has achieved initial results in the opening of stores. Judging from the growth in performance over the past three quarters, the development of new stores can bring a positive proportion of business income.And the company is mainly based on the direct operation mode, which can effectively ensure the high-quality development of the channel.

From the author's point of view, the report card presented by Caibai shares this time, from the data point of view, the direction of past efforts has been shown in terms of performance, although no breakthrough growth has been achieved in terms of profits. however, the short-term high profit does not represent the long-term high premium ability. Caibai shares starts from choosing the direct operation mode, and adheres to the business philosophy of "doing business on the basis of emotion and winning on the basis of quality". It has been shown that enterprises' pursuit of brand and quality, under the trend of consumption upgrading, consumers have the pursuit of higher quality, the steady direct operation mode of Caibai shares, and once the brand barriers are formed, it is easier for enterprises to have a premium say in the jewelry industry.

The new consumption drives the change of the jewelry industry, and Caibai shares seize the mind with creativity.

Further analysis of the value of Caibai shares in the fierce competition in the industry.

In terms of China's jewelry market, gold jewelry accounts for up to 58% of the market, while jade accounts for 15%. Although jewelry products are non-essential products, with the increase of national purchasing power, residents' disposable income slowed down during the epidemic in 2020, but still maintained a growth rate of 4.7%. The gold jewelry industry will also achieve further development with the increase of consumer income.

On the other hand, with the transformation of consumers from "post-60s", "post-70s", "post-80s", "post-90s" and "post-00s", younger consumer groups gradually become the main consumer force, for the new generation of consumer groups, jewelry products have not only been limited to the traditional marriage necessities, but have been given multiple roles such as holidays and friends' gifts, and the consumption concept of gold jewelry has also changed from the monetary value in the past. With a higher spiritual attribute, consumer demand has gradually changed from "price" to "quality". Therefore, products that can meet the needs of young consumers can create new value, which is also a new growth point for the development of the gold jewelry industry in the future.

In this regard, Caibai shares also continue to increase investment in the research and development of creative products, and integrate traditional Chinese IP elements to create diversified products, such as precious metal cultural products into the Imperial Palace, Summer Palace, Panda and other IP elements. At the same time, at the Beijing tourist Chamber of Commerce on October 15, relevant jewelry was launched around Beijing elements, including the Temple of Heaven, the Capital Museum and other landmark buildings in Beijing, attracting many visitors. The exhibition also reflects Caibai's strength in product creativity.

Summary

From the past performance, Caibai shares are on a steady road. In the short term, although Caibai shares did not achieve faster-than-expected growth, in the long run, Caibai shares adhere to the service concept of "heart than gold", promote products through channels and build brands with creativity, which is more in line with the consumer needs of the current new generation of consumers, and the precipitation of time will continue to iterate the brand value.

From the perspective of investment, the current PE of Caibai shares is 24 times, which also shows that the performance in the secondary market is better, but the size of investment space still needs to be fed back through long-term market performance.