Giordano Closed 190 Stores Last Year.

Announced that, as of the end of last year, the total sales decreased by 5.2% to 5 billion 545 million yuan, which fell by about 3% after the conversion of foreign currency. The net profit was recorded at 408 million yuan, a 38.5% drop year by year, excluding currency remittance, which fell 29%; the basic earnings per share of 26 cents per share were 39% lower than that of the same period last year.

The board recommended a final dividend of 14.5 cents per share.

The annual payout rate was 25 cents, with an annual decrease of 37.5%.

During the period, the group's global

And comparable retail sales decreased by 4%.

In the first half of this year, sales in big China, Singapore and Southeast Asia decreased significantly.

In the second half of the year, sales of comparable outlets in mainland China and Taiwan returned to low unit growth while Southeast Asia showed signs of recovery in the fourth quarter.

And the demand for Korean market is weak, and sales are also declining.

Gross profit margin dropped by 2.7 percentage points from 60.7% to 58%.

This reduction is due to the price cutting in the highly competitive market, and the devaluation of Southeast Asian currencies, which has led to an increase in procurement costs.

Gross profit margin narrowed from last year's decline, from 3.5 percentage points in the first half to 2 percentage points in the second half.

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2014 annual report EPS was 0.53 yuan, an increase of 76% over the same period, and its performance was in line with expectations.

In 2014, the caliber of the company's consolidated statements reached 12 billion 340 million yuan, an increase of 72.6% over the same period last year. The net profit attributable to listed companies was 2 billion 370 million yuan, an increase of 75.8% compared with the same period last year. Net profit after deducting non profits was 2 billion 240 million yuan, an increase of 72.3% over the previous year, and EPS was 0.53 yuan.

Among them, 2014Q4 realized revenue of 4 billion 190 million yuan, an increase of 77% over the same period, and net profit of 760 million yuan, an increase of 61% over the same period last year.

Due to the reverse acquisition of Keno technology by Hai Lan's home, the 2014 consolidated report caliber includes Hai Lan home Clothing Co., Ltd. and keno technology 3-12 months' performance. In 2013, it only contained Hai Lan Home Fashion Co., Ltd., 2013. We expect that Hai Lan home's brand revenue will increase by 50% in 2014, and its net profit will increase by 50%+.

The company's bonus scheme pays cash dividends of 0.38 yuan (including tax) per share, the total dividend amount is 1 billion 700 million yuan, the dividend payout ratio is 72%, and the dividend yield is about 3%.

Gross profit margin rose sharply to 40%, net interest rate remained at a high level of 18-19%, sales cost and management fee rate slightly improved due to restructuring, and asset quality improved substantially at the end of the year.

The increase in gross profit margin was mainly due to the higher gross profit margin of St. Keno's custom business, and 3.1 percentage point increase to 39.9% in 2014.

Due to the increase in the cost of the expansion of Hai Lan's home and the increase in the cost of sales and management, the sales and management fees increased by 1.2 and 1 percentage points to 8% and 6.3% respectively.

In terms of asset quality, the company's inventory was 6 billion 100 million yuan, a substantial decrease of 1 billion 600 million yuan compared with 2014Q3 inventory of 7 billion 700 million yuan, and the absolute inventory grew by 40% over the same period last year, much lower than the level of income growth. Accounts payable amounted to 4 billion 740 million yuan, a decrease of 840 million yuan compared with 2014Q3, and net cash flow from operating activities was 1 billion 923 million yuan, which was equivalent to net profit and asset quality was more healthy.

Industry downturn continued to grow against the trend, big store strategy and supply chain integration achieved initial results. The company's mode has a natural O2O fund, and the future electricity supplier will be an important growth point.

Every brand of the company has maintained a high growth: Hai Lan home has achieved 10 billion 100 million yuan in revenue, an increase of 50% over the same period of last year, and achieved a profit of 240 million yuan, an increase of 52% over the same period last year. The income of AI Ju earned 300 million yuan, an increase of 52% over the same period last year, and the income of San Keno was 1 billion 500 million yuan, an increase of 8% over the same period last year, and the electricity supplier income was expected to be about 400 million yuan, an increase of 302% over the same period last year.

At the end of the year, Hai Lan's home had 3348 stores, and the number of stores increased by 16% compared with the same period last year. The income of single store grew by 29% over the same period last year. There were 269 stores and 99 stores and 99 brand linkage shops in AI hare and Bai Yi Shun. The company has steadily promoted the strategy of 200 square meters or more since 2014, and its business area grew by 30% over the same period last year.

We believe that the driving force of the company will come from: (1) there is still a lot of room for extension expansion. In addition to the more mature East China's revenue growth of 61%, the rest of the region will grow by more than 70%. It is expected that there will be 400 new stores in 15 years. (2) the supply chain integration will reduce the cost, the supply price will be higher than that of the higher products, the service quality will be improved, the repeat purchase rate and the big store strategy will bring flow to the stores. (3) the electricity supplier will become an important growth point, and the company's online and offline goods mechanism has been opened up, with the foundation of the O2O mode, and it is expected to open up the user system to introduce tens of millions of users in the future.

The company is committed to building the national brand of China's men's wear. At present, it is still in a period of rapid growth. Model innovation and advanced management can be described as an industry model. We expect to maintain 30%+ growth in 15 years. We are firmly committed to maintaining the buying rating.

We think the company is similar to the 90s Japanese economic deflation cycle of uniqo, with high price ratio products and innovative business model high growth, we maintain 15/16/17 EPS 0.7/0.86/1.04 yuan forecast, corresponding to PE 20/16/13 times, we expect to reach a market value of hundreds of billions in the next two years, to maintain a buy rating.