Optimistic About The Pathfinder: Inside And Outside Double Repair &Nbsp; Future Long Line

domestic

The company is the largest outdoor consumer brand retailer in China. Its business mode is dumbbell style light asset mode. The production is completely outsourced, and the sales mode is mainly based on franchising and supplemented by direct sales. As of the third quarter of 10, there are 629 stores (89 battalions and 540 branches).

The product covers three major categories of clothing, functional footwear and equipment, and clothing accounts for 62% in the first half of 10 years.

After the listing, revenue growth and gross profit margin remained high, but the net profit growth rate dropped significantly as a result of a sharp rise in the cost of the period.

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Outdoor sports as a new industry, China's consumer groups are at the stage of enlightenment. Compared with the United States, there is a big gap between the participation of the population and retail sales. There will be huge room for growth in the future, which will drive the outdoor products industry to maintain 30-40% growth.

There are many brands in the industry, showing the stronger pattern of the stronger.

Besides high-end international brands, sports brand, casual wear brand and upstream fabric producers extend to the lower reaches, and competition intensifies.

In the sales channel, the number of retail outlets and the total retail sales are the largest, followed by outdoor stores, and online shopping is improving rapidly.

The company's recent initiatives: carding adjustment, clear future development

1) in 2011 autumn and winter, product futures were in good condition.

Internal and external repair: long-term internal forging, exogenous growth is expected to maintain {page_break}

In recent years, the company has continuously increased R & D investment, the number of independent design products has steadily increased, the establishment of R & D design center southern branch, close to South market, the implementation of integrated marketing, and constantly enhance the brand cultural value; vigorously promote the "information system construction project" implementation, store ERP reached 80% coverage.

With the steady progress of the meticulous management process in the company's featured product positioning and marketing, the growth rate of exogenous growth is expected to remain.

With the gradual stabilization of the cost rate and the increase of gross profit margin, net profit growth is expected to pick up gradually.

Investment suggestion

Li Ding investment has achieved all cash in the short term pressure reduction significantly reduced.

The equity incentive announced in 10 is conducive to stabilizing the top management team and ensuring the steady development of the company.

Taking into account the industry's high growth, the company's leading position and recent initiatives, it is estimated that in the 10-12 years, the company's EPS will be 0.40 yuan, 0.69 yuan and 1.11 yuan respectively, and the compound growth rate will reach 50%.