Baidu Intelligent Children'S Shoes Lead The Market

Coordination with sports goods in the mainland

It is reported that the expansion plan of the branch has been reopened, and the three tier cities are mainly focused on the 31st degree share. The 31st share price is hard and net. The day before yesterday (5) was 2. 48 yuan, close to one year's high level.

So far this year, the stock price has outperformed the Hang Seng Index by 14%.

Guo Hao capital, a securities firm under the Hong Kong stock exchange, believes that the acceleration of sales growth is the basic reason for the recent strong performance of the stock market.

Comparable sales growth in the same store has been rising for fifth consecutive quarters since September 2013, and a 5.5% increase in the quarter ended December 31, 2014 compared with the same period in 2013.

What is more noteworthy is that the order value of the autumn trade fair ended in December 2014 increased by 16% year-on-year at the end of December 2014.

Management believes that despite the slowdown in economic growth, consumers are paying more attention to sports and entertainment as their health awareness and disposable income increase.

In the second half of 2014, the network expanded to 179 stores, which accounted for 2.5% of the total number of stores in the 3 tier cities.

In addition to expanding sales network, 31st degree is also able to highlight its own position in the industry through product development and Research on creative products.

In September last year, Baidu signed a strategic cooperation agreement, and then launched 4 smart children's shoes in collaboration with Baidu in January this year.

This series of intelligence

Baidu's Hawk Eye technology, with Baidu map LBS open platform services, has precise location monitoring.

Guo Hao capital believes that such products are especially attractive to Chinese parents who are troubled by news about abducted children.

Although products will not have a significant impact on profitability in the short term, these products reflect the creativity of 360 degree designers and their quick response to consumer demand, and will enhance brand value in the long run.

Investors will also raise the valuation base in response to management's keen competitiveness.

The 31st degree will announce its annual results next Thursday, and management will have the opportunity to introduce details of this year's plan and cooperation with Baidu to investors, which will be a short-term catalyst for stock prices.

Suppose the company's sales increased by 15% this year, gross margin reached 40%, net profit and earnings per share increased by 16%, and the current price was equivalent to 4.2 times the cash yield.

It is recommended to buy 360 degrees, the target price of 6 months is 3.55 yuan, equivalent to 6 times the cash price surplus.