360 Degrees, PEAK'S Earnings Are Very Beautiful, But The Share Price Is Down. Value Investment Is Now Away.

From the day before yesterday to yesterday.

PEAK and PEAK have released their own earnings reports, including Anta, which was first released. Chinese brands have shown their performance in recent years.

And a few days later, Lining will give up his pcript.

Behind the earnings report, we would like to see what the company is doing and how it has changed.

The day before yesterday saw the release of the 31st degree 2014 earnings report, revenue of 3 billion 906 million yuan (the same below) increased by 9.01% compared with the previous year (the same below), gross profit 1 billion 597 million increased by 12.68%, net profit 398 million increased by 88.2%.

It should be said that the figures are still very beautiful. At the same time, there are several good news listed in the 31st degree: industry recovery, government support, better performance, ordering data will be gratifying, accounts receivable improved, children's clothing business outstanding and Baidu's joint launch of children's smart shoes.

However, after the release of the 31st degree earnings report, the share price plummeted, dropping about 10%, closing at HK $2.31, or about 7% a day.

At noon on March 11th, the stock price lingered around HK $2.26, down about 2% compared with the previous day.

Why is the number of revenue figures beautiful in 2014 and the share price declining?

Many people are puzzled.

In fact, this is a very normal situation. The earnings representative represents the past, and the stock price represents the market's expectation for the future of the enterprise.

Performance is related to stock price, but there is no direct correlation.

From the perspective of investment, we will analyze the wealth of 31st degree.

First of all, let's review the financial reports of the last two years and draw some conclusions.

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From the above data, we can find Key points below 360 degrees.

Sales in the first half of 1.2014 years were close to 2 billion 100 million, only 1 billion 816 million in the second half of the year, an increase of 15% over the same period last year, and a decrease of 14% in the annulus.

(the performance in the second half was worse than that in the first half of the year, but it accords with the practice of 31st degree consistent first half performance over the second half of the year).

2. net profit in the first half of 263 million is almost double that in the second half of 134 million.

(the proportion of profit and sales in the second half of the year does not match).

3. annual net profit is 397 million, but in the second half of the year, 110 million of disposable accounts receivable can be allocated back. If this factor is eliminated, annual net profit growth should be 290 million.

(according to this figure, the net profit in the second half of this year is only 25 million. Don't forget the sales volume is 1 billion 800 million in the second half of the year).

In November 18th of 4.2014, the announcement of 31st degree said that the net profit will be recorded in the fiscal year December, and will increase substantially compared with the 2013 year, mainly due to the overall improvement in the corresponding receivables during the year, resulting in no further impairment of expenditure. Compared with the previous fiscal year, it recorded a 152 million yuan impairment expenditure.

In addition, the consumption intention of the sportswear industry is also gradually improving. In the first ten months of this year, the group's operating income and profit margin remained stable and the cost was strictly controlled.

5. although the smart children's shoes with Baidu as a selling point, but the actual prospect is not easy to say, the contribution to the future revenue and profits is uncertain (the project dominates in Baidu, domestic budiu and other companies in the shoes to do this, there is still a lot of unknown future).

The above points can explain the reasons for the fall of the stock price, although it looks good.

However, the real reason may be that the capital market is more complicated than we think.

Similarly, at noon yesterday, PEAK released its earnings report.

From the 2014 earnings report, PEAK is "all over the world".

In 2014,

Annual operating revenue increased by 8.7% to 2 billion 840 million yuan, of which overseas market revenues rose 22.5% to 650 million, accounting for 23% of the total turnover.

More attention than performance growth is that PEAK's profitability is improving.

Gross margin increased by 16.4% to 1 billion 70 million yuan, gross profit margin increased 2.5 percentage points to 38%, net profit increased 31.3% to 320 million yuan, and net profit margin increased 2 percentage points to 11.3%.

"In the environment where China's sporting goods market tends to be professional and subdivided, we can get better returns only by making products more serialized, more specialized and closer to consumers."

PEAK sports CEO Xu Zhihua said, "PEAK's 2014 double harvest in the domestic and foreign markets and achieve the best profitability in 3 years will help us to realize the confidence to build PEAK into a professional, people oriented and popular international brand."

However, after yesterday's (March 11th) earnings announcement, its share price fell slightly, closing down 0.91% today to HK $2.170.

(the stock market did not pick up because of the good performance of PEAK, but slightly decreased).

Perhaps the capital market will not be dazzled by the temporary good performance of the sports brand, but the fact is China.

Companies are struggling to get rid of past inventory worries, and they are more or less ushered in a relatively sweet stage.

Now, Anta, PEAK and PEAK three have released their earnings reports. Next week, Lining will release their earnings.