BELLE International VS Saturday: Gross Profit Grew Steadily, BELLE International Got More Capital.

End of the year,

As of December 23rd, the market capitalization of the two companies was HK $118 billion 923 million and $3 billion 623 million respectively.

Although the scale of Saturday is small, as a rising star, it is still valued by many market participants.

So how do we see the investment value of the two companies?

BELLE International:

Vertical integration mode creates higher gross profit

Recently, the reporter came to the sixth department store in Xujiahui, Shanghai (11.75,0.05,0.43%), which is quite busy during the Christmas promotion season.

The first floor is mainly for women's shoes.

Because of too many people, shopping guide shoes take shoes to change shoes is particularly hasty.

Many brands of women's shoes on the first floor include brands like "BELLE (BELLE)", "TATA (him)", "SENDA (teemix), teemix (Teenmix)" and STACCATO (Staccato), all of which belong to BELLE group.

It can be seen that the leading position of BELLE international shoes is not related to its brand.

In fact, compared with Saturday, BELLE international has a very high gross profit margin.

According to the China Daily, the gross margin of BELLE international footwear products is 68.8%, while the gross profit margin on Saturday is 52.45%.

"BELLE is relatively mature in terms of channels, so it can achieve better control over costs.

In addition, brand influence will also affect the gross profit of the company. In contrast, BELLE will have a stronger position when negotiating with the mall.

And after the launch of the market on Saturday, we are making great efforts to expand channels, and many new stores are open, so the discount will be relatively large, which will also affect the gross margin level to a certain extent.

Liu Hongjun, partner of management consulting, said Mr.

According to the introduction, BELLE international has a higher gross profit rate, which is also related to its vertical integrated business mode, that is, all links from the product design and development, production, marketing and promotion, distribution and retail industry chain to the whole company to complete.

Global fashion giant ZARA has also adopted this model.

Shi Hongmei, an Orient Securities analyst, believes that the most direct benefit of this model is that the company can make every profit in the industry chain and raise the gross profit margin of the company.

In addition, under the vertical integration mode, the company can control the links of the supply chain in a more timely, direct and effective way.

In fact, BELLE is taking the popular road. Although BELLE has close consumption with BELLE, its customer base is smaller than that of Bai Li.

"Saturday's positioning is more fashionable than BELLE, so it can be said to be positioned in a more fractionable market."

Liu Hongjun said.

As a latecomer, Saturday's business strategy and mode largely refer to BELLE's benchmark.

For example, the operation strategy of multi brands. In addition, the vertical integration mode of operation is adopted on Saturday. The various links such as design, production, channel promotion, marketing and so on will be reasonably matched, and market oriented, vertically integrated and profitable. This will be the same as the vertical integration mode of BELLE international.

"BELLE and the two women's Shoes Companies on Saturday are much more similar. They have adopted multi brand operations, and they are all in the department store shops and shops. They aim at similar customer groups, while the former pays more attention to the integrated operation of the brand as a whole, and the latter pays more attention to refining the needs of customers."

Zhu Qinghua, a light industry researcher at CIC, said.

Saturday: performance is not as good as market expectations.

Although it was the first leg of A shares at the beginning of the listing, it was favored by many market participants on Saturday, but the net profit growth of the company in recent years is lower than expected.

In 2010, even net profit growth was negative.

In the first half of this year, business income was 606 million yuan, up 20.47% on the previous year, and net profit was 57 million 137 thousand yuan, up by only 0.21% over the first half of.

In the same period, BELLE international achieved operating income of 13 billion 891 million yuan, an increase of 24.55% over the same period last year, and realized a profit of 2 billion 613 million yuan, an increase of 38.49% over the same period last year.

"Saturday's net profit growth is slow and lower than expected. On the one hand, the company's channel expansion process is relatively slow, on the other hand, the company's sales expenses increase faster, and drag on the growth of performance.

Overall, the company's operational capability needs to be improved. "

Dongguan securities analyst Yu Chunyan thinks.

According to the financial report, the sales cost on Saturday was 298 million 326 thousand and 500 yuan in the first three quarters of this year, an increase of 42.37% over the same period last year.

In addition to cost control, analysts believe that in the short term, Saturday's problem is mainly due to inventory clearance.

As of the three quarter of this year, the company's inventories grew by 37.27% over the same period last year.

"Since Saturday, since the listing, there has been more investment in channel expansion, and the new store has made a profit process, so it seems that the net profit growth in the near future is not as good as expected.

But in the long run, the outlook is good. "

Liu Hongjun said.

Tang Shuangshuang, an analyst with Huachang securities, believes that in the long run, women's shoes enterprises are more dependent on shopping malls, which makes the expansion of enterprises relatively limited.

Therefore, if we want to make a breakthrough on the three or four line market on Saturday, we must enhance the profitability of the sub brands, and the future lies in the growth of brands such as Sophia and Febe Lil.

In fact, both BELLE international and Saturday face the same challenges.

"The impact of China's economic slowdown on women's shoes market is inevitable, but the impact is not big."

Zhu Qinghua said that the main problems facing the domestic women's shoes market are market confusion, lack of industry norms, weak brand awareness and serious homogenization of products. Besides, the entry of foreign brands also aggravates competition pressure.

BELLE international cheaper

Volume suddenly increased on Saturday.

In terms of market value, BELLE international is obviously much larger than Saturday.

At the same time, because of the smaller share capital on Saturday, it seems to have the advantage of "small boat and good turn".

"BELLE international stock market has been winning the market in recent years, showing that the fund is very popular with the company.

The stock price is currently in a state of volatility, which is related to the weak overall pattern of Hong Kong stocks.

On Saturday, the share capital was relatively small, and net profit was stable for nearly three years, but it did not show stable growth, and the P / E ratio was obviously higher.

Liu Xiaojie, a third financial researcher, said.

He believes that the growth of Saturday's performance is less than that of BELLE's international stability. At the same time, its capital stock is small and funds are more likely to affect the stock price. If we can keep the price around 9 yuan and steadily raise it in the future, or it will be related to the increase in the dynamic profit expectation of the institution, at present, no matter from the analysis of the existing financial data of the big city atmosphere or stocks, we can not see that the stock has a bigger advantage than BELLE international.

It is worth noting that since December, the volume of trading on Saturday has obviously increased, and the share price performance has slightly outperformed the market.

"Technically speaking, Saturday's position cost has been rapidly concentrated in the range of 9 yuan ~10 yuan.

It is not yet clear how the funds will run and win losers.

Investors can take strategies to avoid risks, such as holding positions, but set up stop losses at around 9 yuan. The stop loss is marked by no sign of 9 yuan in the Japanese K-line and broken down.

Liu Xiaojie said.

Risk warning:

The decline of macroeconomic growth will impact the women's shoes market; inventory will affect the company's operating efficiency and market risk.