Good News Bird: Multi Brand And Multi Series Forging Tomorrow'S Profit Growth Point

Rating agency: Everbright Securities

Event: company investigation

The speed of expansion will speed up, and the profit model will be changed from focusing on endogenous to exogenous.

In 07-09, the company was relatively conservative in the expansion of stores, but management decided that while stabilizing and improving the efficiency slightly, the strategic emphasis should be re pferred to exogenous growth in the next two years to speed up shop opening.

Estimate

The opening rate will gradually increase from 15% to 40-50, and San Jie Luo has increased from 70-80 in the past year to 70-80.

newspaper

Business series is still the main source of profits, and the 8 series are comprehensive coverage.

The "business series" will continue to be the main source of revenue for the company. Its performance will maintain a high growth in the next 1-2 years, mainly from the following aspects: opening more stores, encouraging franchisees to open large stores, increasing the variety of products, stabilizing products, increasing product prices and optimizing product mix.

Several other series of planning are as follows: the classic series helps improve the whole.

Leather goods / leather shoes series will open more independent stores in 11 years; women's clothing series will increase investment in 11 years, 12 years will speed up product line enrichment and store laying; leisure series will relocate in 11 years.

Both in planning, in the conceptual and design stage.

Sandero worked hard 11 years after losing his fortune, and the birds grew steadily.

After two years of operation, it achieved breakeven in 10 years and began to attract franchisees.

11 years will expand, and we expect to open 70-80 stores a year. We predict that the retail revenue of single store is expected to reach 1 million 350 thousand / year.

"Treasure birds" continue to make strong group buying, and expect to grow steadily in the next 1-2 years.

The "category venture capital" project reserves tomorrow's flowers.

The company announced investment in November 2010 and December.

To enter the low-end fashion sportswear and agent Japan and South Korea international brand casual wear.

In 11 January, the company announced that it invested in Shanghai's famous European costumes and tried another leisure brand.

In the next few years, the company will continue to take new initiatives on the "multi brand" road. Each brand will invest 1-2 million to hatch and nurture, so as to create a comprehensive clothing group.

Brand diversification, serialization of good bird brands, breeding future earnings growth point, buying rating

In the past few years, the company has steadily expanded and improved its efficiency. It will accelerate the pace of exogenous growth in the next two years.

At the same time, we will continue to promote the serialization and multi brand strategy of the news bird brand, cultivate and invest in new brands, forge "multi-level brand and profit contribution sequence ladder", that is, launch a series of brand speed every 1-2 years, and form a new profit growth point like "time series".

We predict that the company's EPS in 2010/2011/2012 is 0.83/1.06/1.40 yuan, giving 12 years dynamic PE25X and "buy" rating, 6 months target price 35 yuan, stock price adjustment provides a better buying opportunity.