Semir Fashion: Shopping Center Store Will Become The Future Trend

Steady growth in performance. This year's operating income reached 8 billion 147 million 133 thousand and 800 yuan, an increase of 11.7% over the same period last year, operating profit of 1 billion 474 million 123 thousand and 700 yuan, an increase of 19.26% over the same period last year, and net profit attributable to shareholders of listed companies was 1 billion 92 million 260 thousand and 100 yuan, up 21.09% over the same period last year. Earnings per share were 1.63 yuan, slightly higher than we expected (1.56 yuan). The company intends to distribute cash dividends of 10 yuan (including tax) for every 10 shares and increase 10 shares.

Casual clothes change to endogenous growth. With the upgrading and differentiation of consumption, the public's pursuit of high performance price ratio is becoming more and more obvious. Fashion and individualization of products become the key to grasp young consumers. The company's casual clothing actively caters to the market demand, focuses on products, improves product competitiveness, reversing the downward trend in annual performance, and achieves operating income of 4 billion 903 million 195 thousand and 300 yuan, up 4.69% over the same period last year.

　　 Children's wear Business has maintained rapid development. Company's children's wear brand Barbara The number of stores in the country has reached 3540, covering 1234 lines of cities. Brand awareness and market share rank first in China. With the continuous escalation of family consumption, the children's wear market has entered a period of rapid development. The company has created a good brand image with a high quality product and a price at the middle end, and has a stable customer base. During the year, the children's clothing business realized 3 billion 167 million 113 thousand yuan of business income, an increase of 24.91% over the same period, and it has continuity.

The company has enough cash flow to find suitable investment targets. At the end of the reporting period, the company's Monetary Fund reached 4 billion 47 million yuan, its cash reserves were very sufficient, and the company's asset liability ratio was relatively low, without long and short term loans, and the company's financial position was relatively stable. The company is optimistic about the industries related to children's clothing, such as animation, education, film and television, publishing and so on. These subdivision industries are in the bud or growing stage. The company is also doing this work and exploring cross domain cooperation.

Earnings forecasts. 1) the company will vigorously promote the multi brand strategy of casual wear, speed up the opening speed of it MICHAA and Marc Opolo brand in the domestic business circle and shopping center, further enhance brand awareness; 2) the company believes that shopping centers will become the mainstream of offline channels in the future, and has already reached strategic cooperation with Wanda Commercial real estate. Shopping Mall Set up a 300-500 square meter large children's wear experience shop to enhance the image and influence of the first brand of children's clothing in China; and most of the large shops that were stationed in the shopping center at the initial stage were directly managed by the company to enhance the confidence of franchisees in shopping center stores; 3) the online business of the company also developed rapidly, and the sales of children's clothing ranked first. At present, the company's online business is mainly based on new products, and it is also an effective channel to deal with inventory. In the future, it will continue to increase the proportion of new products to achieve the same price sale on line and online, and will launch online customization to meet the needs of more users. We expect the company's EPS for 15-17 years to be 1.94 yuan, 2.33 yuan and 2.80 yuan respectively, corresponding to PE 21.94 times, 18.28 times and 15.22 times respectively.

Risk factors. The cost of labor is rising, and the competition of dominant brands at home and abroad has intensified. Retail terminal Continued downturn.