AOKANG's International Performance Is In The Recovery Stage, And Employee Stock Ownership Is Going Smoothly.

In December 12th, the company announced that the employee stock ownership plan had already completed the stock purchase, and the total purchase amount was 16 million 625 thousand shares, the total purchase amount was 253 million 298 thousand and 500 yuan, accounting for 4.15% of the total share capital of the company, and the lockup period was 12 months.

　　 Employee stock ownership is successfully implemented, and incentives are put in place to form a community of interests between employees and enterprises.

According to the latest adjustment plan, esop The number of participants was adjusted to 49 people (the number of Dong Jiangao did not change and the proportion of investment increased to 22.38%). The average contribution of Dong Jian was 3 million 310 thousand yuan, and the average contribution of other employees was 2 million 580 thousand yuan. As of December 12th, the ESOP has completed the stock purchase, the total purchase of shares accounted for 4.15% of the total share capital, the purchase price of 15.24 yuan / share. With the successful implementation of the ESOP, the incentive mechanism is in place, the incentive effect is obvious, the employees and the enterprises develop to form an interest community, and the Future Ltd business has steadily recovered. In addition, according to public information, the future may not exclude the possibility of further enlarging the scope of employee motivation. At the same time, at the same time, the company will add leveraged tools in the employee stock ownership plan, get the distribution rights of excess profits through the transfer of priority distribution, and the profit and loss of employee stock ownership will also be enlarged, which fully demonstrates the confidence of the company and the participants of this plan in the future development.

The competition situation tends to be clear, and the company's business is expected to recover steadily.

After this round of industry adjustment, the competition situation of men's shoes is becoming clearer, and the industry competition is concentrating on several major brands. At the same time, after fierce competition from the channel, the future will not rule out the possibility of further integration from the three to the two. In addition, the impact of foreign brands on men's shoes is relatively small, AOKANG as domestic. Men's Shoes Leading companies will fully benefit from the upgrading of the industry's low trough and the change of competition pattern.

The company's strategy of transferring direct battalion is drawing to a close. From the revenue side, the competitiveness of the big hotels, including the International Pavilion, is outstanding. Meanwhile, terminal retail has been stabilized and dealers' confidence has been restored. Profit side, this year, because of the goal of centralized inventory digestion, sales promotion has increased and has a greater impact on gross profit margin. With the progress of storage and storage, stock pressure has gradually eased, and gross profit margins and profit margins have gradually resumed upward. The turning point of the company's performance has been basically established. In the future, with the recovery of terminal retail and the acceleration of International Pavilion construction (more than 300 new businesses will be added in the next two years), the company's business is expected to recover steadily and enter a stage of rapid development.

　　 Risk warning

　　 Terminal retail The environment continues to be sluggish; the adjustment period is long and the recovery is slow; the speed of international shops is not as fast as expected.

　　 Optimistic about the steady recovery of the company's future performance, maintaining the "buy" rating, a reasonable valuation of 23 yuan.

As a leader in domestic shoe industry, the company is expected to benefit from the upgrading of the industry's low trough and the change of competition pattern. The leading edge is more prominent. At the same time, through the promotion of new models such as the International Pavilion and so on, the extension space will be further opened, and the future business is expected to recover steadily, and the turning point of operation has already appeared. The company's employee stock ownership plan is successfully implemented, and the incentive is formally put in place to show future confidence in development. In addition, in the medium and long term, the company's promotion in O2O and personalized customization and standardized production is also worth looking forward to.

Maintain 14~16 profit forecast 0.59/0.78/0.99 yuan, maintain "buy" rating, the company a reasonable valuation of 23 yuan, corresponding to 15 years PE30X. For details, we can refer to the "AOKANG international deep report" released in November 12th: gradual turning point of operation and confidence in employee stock ownership.