Nine Mu Wang Extension Expansion Speed &Nbsp; Two Or Three Line City Development Key

In the first half of the year, the comparable growth of stores was more rapid because of the increase in prices. Joeone Income growth is relatively fast, and the effect of price increases has also been made. Gross profit margin Improved. China Merchants textile and garment industry analysts believe that as one of the leading brands of domestic business casual men's clothing, the company will continue to develop rapidly through improving the layout of the two or three tier cities, improving the single store area and the efficiency.

　　 Layout of two or three line cities

In the latest performance forecast, nine Mu Wang expects to achieve operating income and net profit of 964 million yuan and 235 million yuan in the first half of 2011, up 31.02% and 42.39% respectively over the same period last year.

According to China Merchants Securities analyst, the strong profitability of the company is mainly due to the successful establishment of a more mature direct store operation system in the second tier city stores. Compared with other Fujian Style Men's clothing enterprises, the company has a relatively high proportion of direct business. Moreover, the proportion of the company's self production is relatively high. With the "vertical integration" supply chain management, it can effectively achieve rapid replenishment production and further improve the company's profitability.

Unlike other commercial casual men's clothing, be run directly by a manufacturer and Join in Mixed combination marketing network Taking the layout of a second line department store as the leading part, the direct battalion occupies 36% of the total. At present, the core and hotspots of the direct store as a model store, effectively enhance the brand image and popularity of nine Mu Wang. In the second tier cities, the company's direct shopping mall counters are the main source and driving force to contribute to profitability and maintain endogenous growth. This constitutes the competitive advantage of the company in business casual men's clothing industry.

From the perspective of development space, at present, the layout of the department stores in the second tier cities is relatively full. But at present, the terminal density of the two or three tier market is not high. The company is actively distributing spots in the two or three tier cities. As of April, 160 new stores have been opened up, which obviously accelerated compared with the previous two years. From the operation of the stores in Quanzhou and Yangzhou, they all showed better profitability.

　　 Store efficiency improvement is the key to profitability

The average annual growth rate of business casual men's retail sales from 2004 to 2009 reached 22.8%, which is obviously higher than that of men's wear market. Faced with the change of business environment, the industry at the front end of consumption promotion needs to achieve connotative growth through the establishment of a controllable channel mode and the comprehensive strength of single store management, supply chain management and brand operation, so as to achieve the goal of improving the quality of single store. And domestic business casual men's wear leading companies in the promotion of single store is obviously still have room for improvement.

In the commercial casual men's clothing, the nine Mu Wang has advantages over the seven wolves in terms of income, channel size, and comprehensiveness of the category. However, the company has an advantage in the layout of the second tier department store and the construction of the direct business system. The direct construction and the application of the information system bring about the improvement of the quality of single store and the excellent performance of profitability.

China Merchants Securities believes that as one of the leading brands of domestic business casual men's clothing, the nine year old king will continue to develop rapidly through improving the layout of the two or three tier cities and improving the performance of single stores. The broker made a slight increase in 2011 earnings forecast. It is estimated that earnings per share in 2011~2013 years will be adjusted from 0.86 yuan, 1.17 yuan and 1.35 yuan / share to 0.88 yuan, 1.17 yuan and 1.35 yuan / share respectively. The valuation level of the company is still relatively low. For the first time, China Merchants Securities listed the company as the focus of recommendation in the second half of the year, giving the investment rating of "strongly recommended -A" and advises investors to pay close attention to it.