Semir Clothing 2014 Annual Review: Leisure Wear Business Resumed Growth, Children'S Clothing Business Continued

In 2014, the company achieved operating income of 8 billion 147 million yuan, an increase of 11.70% over the same period. The net profit of shareholders of two listed companies was 1 billion 92 million yuan, an increase of 21.09% over the same period. Net profit after deducting non recurring gains and losses was 1 billion 12 million yuan, an increase of 18.13% over the same period; and the basic earnings per share were 1.63 yuan.

The company's profit distribution plan for 2014 was 10 yuan for every 10 shares, and 10 shares for every 10 shares.

Main points of investment:

Business resumed growth: in 2014, the business of leisure wear business reached 4 billion 903 million yuan, an increase of 4.69% over the same period, of which 10.33% of the direct channel grew and 3.63% of the franchising channels increased.

After more than two years of adjustment to inventory, supply chain integration and channel terminal optimization, the number of stores in the country is 3542.

Business recovery growth trend.

Combined with the 15 year order meeting data, we expect that leisure wear business is expected to achieve two digit revenue growth throughout the year.

Business boom continues, baby strategy promotion is expected to open up the company's growth space: 1 and 2014, children's clothing business income of 3 billion 167 million yuan, an increase of 24.91% over the same period.

Barbara's advantage in children's clothing is obvious. The market space for children's wear will be further opened up by the two demographic dividend and the policy of child affairs.

2, the company put forward the outline of baby industry, and gradually pferred from children's product providers to online and offline businesses, and integrated service providers of children, industry, education and cultural pmission.

In July, the company acquired 70% stake in Yu Han Shanghai, set foot in the field of early education, and took education as a breakthrough point in the company's infant industry.

We believe that the company has obvious advantages in the extension of the children's industrial chain. The number of Barbara national stores is 3540, and the control terminal is an effective channel to carry all kinds of resources.

In the same year, the company has ample cash and 4 billion 47 million yuan in cash at the end of 2014.

The fourth quarter income growth rate is higher than the first three quarters, gross profit margin and net interest rate are rising channel: 1, 2014 four quarter, the company income increased 17.7% year on year, 8.8% in the first three quarters of senior two.

2, to clean up the inventory impact, the company's gross profit margin in 2012 and 2013 was 33.8% and 35.4% respectively.

In 2014, with the end of inventory, the gross profit margin of the company was 36.1%, and gradually returned to its normal level.

3, the company has taken a series of measures, such as optimizing the process, controlling costs and closing the nonprofit gate, and the sales cost rate has dropped by 1.36%.

The cost of management has increased by 0.25%, mainly due to the increase in costs and staff salaries in order to attract talented people.

For the first time, the "highly recommended" rating is given.

It is estimated that operating income in 2015, 2016 and 2017 will be 94.1, 109.6 and 12 billion 830 million yuan, up 15.5%, 16.5% and 17%, respectively. The net profit is 13.8, 17.1 and 2 billion 50 million yuan respectively, representing an increase of 2 billion 50 million, 17.1 and 2 billion 50 million, corresponding to EPS, respectively.

Taking into account the bottom up rebound of the company's casual wear business and the steady growth of children's clothing business, the extension of children's industry is expected to open up room for growth, with a target price of 53.56 yuan, corresponding to 15 times 26 times PE.

The risk hints: 1. The promotion of baby child industry is expected.

2, the consumer environment continues to slump.