Semir: Brand Differentiation And Concentration To Improve The Electricity Supplier Also Has A Core Strategy.

Company fundamentals. China clothing The market is going through the following stages: centralization of low-end mass market, concentration of hundreds of brands to a few brands, and more opportunities for segmentation and upgrading in the high-end market. The two main brands of the company Semir and Barbara They all belong to the mass market, and the trend of concentration is obvious. Barbara, as the first brand of children's clothing in China, maintains more than 20% of annual income growth. This is the opportunity brought by centralization to the leading brands. Semir's brand declined in the 12 year, but it still declined in 13 years, but narrowed. It resumed single digit growth in 14 years and increased by 10% in 15 years. Leisure clothes The overall market is declining, and small and medium-sized brands are withdrawing, bringing opportunities to leading enterprises.

Strengthen cooperation with quality suppliers. The core suppliers of overseas brands are facing the dilemma of orders being spanferred to Southeast Asia. First, Southeast Asia exports zero tariff to Europe and the United States, while the average tariff of domestic clothing exports is around 10%, and a large number of orders are spanferred. Second, overseas companies stipulate that raw materials are not allowed to be imported from China, and can only choose Southeast Asian member states. This led to the shortage of excellent suppliers in China, and Semir took the opportunity to actively cooperate with these suppliers, and the quality of products was greatly improved.

Improve order level and improve terminal sales ability. The problems that the company encountered before came from the uneven ordering level. Some two level agents did not understand the order and management, and the ability to handle orders was very poor. The fragmentation of orders caused a great impact on the supply chain. During this time, the company combed the one or two level relationship, collects the store information on the platform, and leads and controls their orders, orders from 50% to 70%, most of the goods can be controlled, and the inventory is also helpful to inventory digestion. In addition, the company strengthens the service management ability of the first class agents, hopes to cultivate a number of quality agents in two or three years, and deeply bind with Semir, and build a big ecological circle.

The electricity supplier also has the core strategy. Internet mainly depends on traffic. With the embodiment of brand effect, the third party platform is willing to import more traffic to the company and get more and more resources. Online merchandise is part of the tail cargo. It is an important way for the company to go stock. It is expected to improve in the future, increase the supply of new network and new brands, and switch to stock mode.

Brand differentiation and concentration increase, good industry leader. The company's main brands, Semir and Barbara, focus on the mass market and have a high brand influence in the 234 tier cities. Refer to the leading companies in the mass market abroad, mostly monopoly companies such as UNIQLO, H&M, etc. China is moving closer in this direction, and Semir is likely to become such a monopolistic giant. At the same time, the company is also concerned about the middle and high-end market segmentation opportunities, and Korea Companies cooperation, to provide consumers with comprehensive products. Through cooperation Companies in South Korea has a certain reputation, Korean companies also hope to enter the Chinese market through the company. At this stage, Semir relies on internal development to open up bottlenecks in production and sales links and rely on the external environment in the future. At present, it is easier to integrate resources in China, which is a good opportunity to expand. In the next five years, the differentiation and concentration of industry brands will be higher. Semir will take advantage of this opportunity to develop rapidly.

Earnings forecasts. Semir's leisure brand has resumed growth in the past 14 years, and this year it is expected to reach 10% growth rate; balbala brand can maintain a 20% growth rate; the new brand marcard is expected to break 100 million this year, and the landing of Korea's cross-border electricity supplier will bring new profit growth point to the company. We expect the company's EPS in 15-17 years to be 2, 2.38 and 2.83 yuan respectively, corresponding to PE 10.63, 8.93 and 7.51 times respectively. Give a "buy" rating.