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

In the first half of the year, due to the increase in price, the comparable growth rate of stores was relatively fast.

Layout of two or three line cities

In the latest performance forecast, nine herd Wang expects the first half of 2011.

Attract investment

Different from other commercial casual men's clothing, the nine Mu Wang adopts a mixed marketing network which combines direct camp and affiliate. With the layout of a second line department store headed, the proportion of direct battalion is as high as 36%.

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, the company's distribution in the second tier city department stores has already been completed.

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 business casual men's clothing, the nine farmers are in the income and channel.

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's recommendation in the second half of the year, giving the investment rating of "strongly recommend -A".