The First Three Quarters Of Smith Barney'S Net Profit Fell By 30%-50%

< p > in the first half of 2013, the company achieved operating income of 3 billion 738 million yuan, down 18.74% compared to the same period last year, operating profit of 282 million yuan, down 46.52% compared with the same period last year, and the net profit of the parent company belonging to the parent company was 222 million yuan, down 48.52% compared with the same period last year; the basic earnings per share were 0.22 yuan.

At the same time, the company expects net profit in the first three quarters of 2013 to decline by 30%-50%.

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< p > the weak market and the active adjustment of the company have led to a marked decline in revenue.

During the reporting period, the company's revenue fell by 18.74%, of which direct revenue reached 1 billion 996 million yuan, down 13.88% compared with the same period last year, and the income from joining the company reached 1 billion 711 million yuan, down 23.74% from the same period last year.

We judge the decline of revenue on the one hand due to the weakness of terminal and the return of company inventory to reduce sales incentives reasonably. On the other hand, the company takes the initiative to adjust, control risks, and reduce new products and franchisees' futures orders.

In addition, the company's stock has returned to normal level, semi annual report shows that the company's inventory value fell to 1 billion 520 million yuan.

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< p > the management efficiency is improved and the cost control is better.

During the reporting period, the gross profit margin of the main business of the company increased by 0.7 percentage points to 46.9%, of which the gross profit margin of the direct business increased by 4.2 percentage points to 52.41%; because the company reduced the discount of franchisee delivery, the gross profit margin of the franchisee decreased by 3.65 percentage points to 40.47% over the same period last year.

In the first half of the year, the company focused on improving management efficiency, promoting the lean adjustment of organizational structure and matching jobs, resulting in a 5.6%, 17.85% and 46.62% decrease in sales, management and financial expenses compared with the previous year.

However, because of the decline in revenue, the cost rate rose by 3.9 percentage points to 37.6% over the same period, while the net profit margin dropped by 3.4 percentage points to 6%, a record low.

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< p > profit forecast.

With the arrival of the new management team (Mr. Lin Haizhou, who is in charge of the supply chain, Ms. Gui Meiping, who is in charge of human resources, and Mr. Min Jie, who is responsible for the recent return of the original electricity supplier), the company has changed from the former department system to the horizontal functional management mode, and at the same time, the focus of the company's growth has also shifted to endogenous growth, and the new shop image of "experiential shopping" and the new products represented by "technology velvet" have been launched.

Therefore, we downgrade the profit forecast. It is estimated that 13-15 years EPS will be 0.65/0.94/1.06 yuan, PE is 15/10/9 times, and the "prudent recommendation" rating should be given.

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