Anzheng Fashion (603839): The main brand has steadily increased its gift information and consolidated its profits
Core point of view In the first half of 19, the company’s operating income and net profit increased by 49%.
49% and 18.
34%, net profit increased by 30 after non-deduction.
19% (Excluding the influence of Li Shang information in November 18, the revenue of clothing business increased by 1.
1%, profitability 0.
37%), 19Q2 company operating income and net profit increased by 58.
20% vs. 28.
55% (Garment business single-quarter revenue and profit increase by 1.
66% vs. 3.
Online sales are growing rapidly, and new brands are still in the incubation period.
In terms of brands, the revenue of the main brands in the first half increased by 9%.
82%, Yin Mo, An Zheng, Mosak and Fina Chen’s income decreased by 10 respectively.
19% and 32.
68%; Lishang Information achieved revenue and profit in the first half of the year3.
64 ppm vs. 0.
In terms of channels, the company’s offline revenue decreased by 6 in the first half of the year.
59%, online clothing revenue increased by 40.
91%, partially remedying the possibility of offline growth.
In the first half of the year, the company closed 34 stores to 939, of which 3 were Zizi, 6 were Yin Mo, 4 were at Anzheng, 2 were at Mosak, and 20 were at Fina Chen.
In the first half of the year, the endogenous growth of the main brand still maintained an upward trend. In the future, it will open stores moderately and still have development potential. The new brand has not yet stepped out of the climbing period and needs to be further cultivated and consolidated.
In the first half of the year, the company’s comprehensive gross profit margin decreased by 13.
33pct (increasing the proportion of 青岛夜网 online income, consolidating the information on gift and fashion), the gross margin extension of each brand has been improved to different extents; the expense ratio has dropped by 10 during the period.
63pct, net cash from operating activities increased by 168 per year.
45%, the inventory turnover rate and receivables turnover rate increased.
The acquisition of Lishang Information, shares in the frog prince, and brought new growth points around the layout of the baby industry.
In 18 years, the company successively obtained the agency rights of British luxury brands StellaMcCartney and StellaMcCartney Kids in Greater China, and acquired 70% equity of e-commerce agency Lishang Information), Shares in the top ten domestic children’s clothing brand frog princes, the business further covers online and offline mother and baby surroundings, children’s toys, outdoor sports, children’s clothing, etc., the development of new categories and new formats, is committed to the company’s main business based on clothing,New revenue and profit growth points.
Financial Forecast and Investment Recommendations According to the interim report, we basically maintain our previous profit forecast for the company, and the company’s 2019-2021 earnings are expected to be 0.
91 yuan, 1.
03 yuan and 1.
16 yuan (previous forecast was 0.
90 yuan, 1.
03 yuan and 1.
16 yuan), maintaining the company’s 16 times PE in 2019, corresponding to a target price of 14.
56 yuan, maintaining the company’s “overweight” rating. Risk reminder: the risks of multi-brand operation, inventory risks, and the impact of the decline of e-commerce traffic on large platforms