In The First Half, The Performance Of The Birds Was Slightly Lower Than Expected Growth.

domestic Men's clothing enterprises The semi annual report of the news birds is slightly lower than expected. The data show that business revenue increased 25.02% to 916 million yuan in the first half year, and business profit increased 40.39% to 154 million yuan over the same period last year. Net profit attributable to parent company increased 35.80% to 126 million yuan, corresponding to 0.21 yuan per share, 4% lower than we expected.

In the first half of the year, the overall revenue growth of 25% was slightly lower than expected, and the two quarter operating income fell by 5% over the same period, because shipments in the first quarter were more (58% year-on-year growth in revenue) and the slowdown in terminal sales (the same sales growth rate in 1~8 months). In terms of sub brands, the business of "bird bird group buying" has been significantly improved; the young leisure style of San Jie Luo and Bi LTE are not ideal, and other middle and high terminal brands are still small in scale and still in the investment period.

Gross profit margin increased by 6.5 percentage points in the first half of the year, mainly due to the adjustment of product structure to raise the average unit price. It is estimated that the increase in gross profit margin in the second half of this year will be reduced due to the substantial increase in the price of autumn winter clothing last autumn.

Business cash flow is negative, and franchisees are in good condition.

Inventory turnover dropped sharply. Inventory turnover days increased by 73 days to 293 days in the first half of the year, and inventory pressure was reflected in the company's books. The company will continue to allow the franchisee to return the goods, so the channel inventory pressure is not large.

First half year Wedding bird Growth of 30, San Jie Luo stores adjusted a net reduction of 25, the number of stores grew less than expected. 7~8 month is the peak of opening stores. It is estimated that the main brands of the birds can achieve a net increase of 80~90 stores in the whole year, and the growth rate of San Angelo stores may be lower than expected.

Development trend:

The order of 2013 spring and summer order has just increased by 15%~16% compared with the previous year. The growth rate has slowed down, reflecting the terminal. clothing The pressure of the recession on the franchisee. In terms of profit margin, the decline in raw material prices and the slowdown in labor costs have led to a decline in production costs, and the gross profit margin of the company will still rise in 2013. The experience of brand experience is tested and the attraction of brand combination is tested.

Earnings forecast adjustment:

The profit forecast for 2012 remained unchanged at 0.77 yuan, with a slight decrease of 1% in 2013 and 0.94 yuan in earnings per share.

Valuation and recommendations:

The current stock price corresponds to 2012/13 times earnings ratio 14.6/12.0 times. The company's gross profit margin and scale two wheel drive strategy has achieved certain results. But it is the most high-end brand positioning in second tier cities, and encourages and supports franchisees to open large stores. Channel mode Rapid expansion of stores is not very advantageous. Higher positioning keeps and raises gross margin, but attention should be paid to the increase of price increase to the effect of cost performance.