Footwear Market Depth Analysis, Multi Brand Open Market Growth Space

The leading brand of domestic positioning shoes has benefited from the expansion and concentration of the industry.

Considering the acceleration of urbanization, the acceleration of low and middle consumption demand and the continuous increase of the main consumption population, we anticipate that the domestic low and medium end footwear industry will maintain a stable and rapid growth of about 20% in the future.

The domestic footwear brand market is dominated by mid-range brand competition. As a result of the long-term establishment of the two or three line market, both the channel resources and the upgrading of middle and low end consumer demand have certain advantages.

Compared with women's shoes,

Brand market concentration is relatively low, and no national brand of men's shoes has yet to emerge.

As the industry leader, the company will benefit from the expansion and concentration of the industry. The strength of the company after listing will help to break through the original competition pattern.

Many brands open up room for growth.

The five brands are independent and misplaced to open up space for the growth of the company. The three major brands, AOKANG, Kanglong and red Firebird, still have potential for channel coverage and sales scale.

It is estimated that the mature brand "AOKANG" will increase from more than 3200 to 4500, with about 350 new stores opening each year, and the increase of single store efficiency is also an important growth point.

The "Kanglong" and "red Firebird" are at a low base. The main growth point in the future will be to break through the dominant provinces and increase the coverage of the channels. It is estimated that the average annual opening of new stores will be around 200 or 100.

Channel expansion is the main driving force for growth.

At present, the main channel of the company's distribution is South market, and the northern market can still be excavated. The consumption of the 234 tier cities is rising rapidly, and will benefit from the expansion of the market in the future.

The company supports dealers to create the "regional first", the terminal replication capability is strong, the channel is still dominated by distributors, and it is estimated that the number of distributors will increase by about 600 in the future.

With the acceleration of the construction of the direct investment camp, the brand radiation and terminal control capabilities will be predicted. About 150 new stores will be opened in the future.

Gross profit margin will increase steadily.

The proportion of OEM/ODM business in the company decreases year by year, and the increase in the proportion of domestic brand business income will effectively raise gross margin.

In addition, with the expansion of the company's sales scale, the reduction of centralized procurement costs, the increase in brand value added and the implementation of meticulous management, we expect that the overall gross margin level of Future Ltd will steadily increase.

Give a "buy" rating.

The company is expected to achieve EPS in the past 12-14 years, 1.40 yuan, 1.82 yuan, and 2.31 yuan respectively.

In the next three years, the annual compound growth rate of company income and net profit rate is expected to be 26% and 28%.

We give the company 20-25 times earnings and the target price range is 28.00-35.00 yuan.

At present, the valuation is at a low level, giving a "buy" rating.