Societe Generale Technology: Capacity Release Is Not As Good As Gross Margin, Resulting In Lower Than Expected Performance.

The company announced the 2014 annual report, and realized the main business income of 2 billion 234 million yuan, an increase of 25.47% over the same period of the year. The net profit of shareholders belonging to the listed company was 120 million yuan, down 32.41% compared to the same period last year, corresponding to EPS was 0.49 yuan, slightly lower than we expected. The company intends to distribute a cash dividend of 1.5 yuan (including tax) for every 10 shares.

　　 Order Faster growth reflects the leading position. Revenue grew by 25.47% in 2014. It is not easy to achieve rapid growth under the background of economic depression. It reflects the further strengthening of the company's leading position, while Dongan, ransom and Xingning have sufficient reserves, and the future is expected to gradually release. This validates our recommended logic. Leading enterprises are more likely to get the approval and stickiness of customers in the non business cycle with their capital, mode and stable supply quality advantages: Heng Qiang, the strong.

Raw material prices and low downstream prices led to a decline in gross margins. Most of the company's raw leather is purchased abroad. In recent years, the import price of raw leather has risen sharply, exceeding 20%. Brand shoes enterprises It is more sensitive to cost, and also lacks the power to develop high-end products, which in turn leads to lower bargaining power of the company. Moreover, although online consumption is growing faster, the price of its products is relatively low, which means that the low end demand structure occupies a higher proportion. Therefore, we see that the gross profit margin of 12.09% in 2014 is 5 percentage points lower than that in 2013, which is the main reason for the decline in performance growth. In addition, the financial cost of 12 million 740 thousand yuan in 2014 increased by 26 million 740 thousand yuan compared with -1368 million last year, which is also an important reason for the decline in performance. company It is a mode of selling products and is concerned about the quality of assets.

Continue to recommend the logic of "big industries, small companies, concentration enhancement", and maintain "recommended" rating. Although the company's performance is lower than expected, the high growth rate of orders indicates that the leading position of the company is more and more stable under the background of recession, and it is constantly gaining market share. In the future, it will fully benefit from the regulation and control of environmental policies, and it deserves long-term attention. We maintain the company's 2015 and 2016 EPS earnings forecasts of 0.60 and 0.72 yuan respectively. Combined with the current stock price corresponding to PE 30 and 25 times respectively, the industry concentration is continuing to improve.