Semir Accelerates Layout Of Children'S Clothing Business

Event: the company released the 2014 annual report, with operating income of 8 billion 147 million yuan, an increase of 11.7% over the same period last year, and net profit attributable to parent company 1 billion 92 million yuan, an increase of 21.1% over the same period last year.

Basic EPS1.63 yuan.

The company intends to distribute cash dividends to all shareholders every 10 shares, including 10 yuan (including tax), and 10 shares in every 10 shares of the capital reserve fund.

Business acceleration.

In 2014, the sales of children's wear increased by 25% over the same period last year, 5PCT higher than that in 2013.

At present, the number of stores in China is 3540, an increase of only 69 from last year. The growth of single store revenue has made greater contributions to the revenue. The main companies are strengthening product design and research, developing large stores and shopping center stores, carrying out double line integration activities, and continuously promoting multi brand businesses.

From the perspective of the proportion of the channel, the franchise still takes the lead, but the proportion dropped from 80% in 13 to 78% in 14.

In 2015, in view of children's clothing business, the company will focus on the development of consumers and terminal stores, promote flat management of organization and business, and achieve sustained and rapid growth of sales.

We expect that sales of children's clothing will continue to grow by more than 20% in 15 years.

Leisure business stabilizes.

In 2014, sales of leisure business increased by 4.7% over the same period last year. After experiencing a decline in the past two years, it finally gained a single digit positive growth, indicating that the company's leisure business has stabilized.

By the end of 14,

The total number of stores in the country was 3542, compared with nearly 500 in 13 years, the company closed down the poor profitable stores, optimized the terminal and supply chain resources, thereby driving the level of profitability to steadily improve.

The proportion of Semir brand channels is still dominated by franchising.

In 2015, in addition to Semir brand management continues to strive for stability and upward, the company will increase itMICHAA, marcO 'polo and other brand shop opening pace, with the help of international brand communication and marketing means, enhance brand awareness.

We expect that sales of leisure business will grow at a rate of 0-5% in 15 years.

Give the company a "buy" rating, a target price of 50 yuan in 3-6 months.

The company's 15 year focus is that its performance will continue to grow at a relatively fast pace, with stable profitability and proper cost control.

The core EPS of the 15-17 years is 1.88, 2.14 and 2.48 yuan, corresponding to PE23/21/18 times.

The company has a general imagination, but its performance is strong and suitable for steady investment.