Song Li Si Builds The High-End Fashion Brand Pool Expansion, Promotes The Production And Sale Scale Promotion.

In the 2015 year of the year, the company realized its operating income, net profit attributable to shareholders of listed companies, net cash flow from operating activities, and EPS of 835 million, 160 million, 1.66 billion yuan, 1.08 yuan / share, with 12.28%, 15.82%, -2.19% and -6.09% respectively.

Profit distribution plan: Based on the company's current total share capital 166 million shares, distribute cash dividends to shareholders 10 yuan per share, 2.6 yuan (including tax), distribute cash dividends 43 million 68 thousand and 700 yuan, and increase 5 shares to 10 of all shareholders by capital reserve fund, and add 82 million 824 thousand and 400 shares to 82 million 824 thousand and 400 shares.

In the first quarter of 2016, net income, net profit attributable to shareholders of listed companies, net cash flow from operating activities and EPS were 180 million, 23 million 824 thousand and 100, 13 million 240 thousand and 200, 0.14 yuan / share respectively, increasing 0.64%, -29.42%, -80.52% and -50.00% respectively.

Brand pool expansion to boost production and sales scale

Song is already in.

Domain layout: offline advanced

"Ellassay", the German senior women's clothing brand "Laur L", the American light luxury brand "EdHardy" and the online advanced brand "With Song".

The company's future strategic goal is to grow into "China high fashion group". It aims to achieve the goal of multi brand collaborative development through sharing the brand management experience, channel resources and operational experience of the group for many years through the sharing of the huge VIP group (by the end of 2015, when the number of direct customers is VIP, the number of customers has reached 80 thousand).

The company plans to explore high potential fashion brands through new ways and acquisitions, and increase the number of well-known brands, so as to enlarge the market influence of external brands and the existing brands of the company and achieve effective expansion of the business layout.

The introduction of external brands, on the one hand, brings new brand promotion, channel and customer resources to the company's main brand "Ellassay". On the other hand, through accumulating resources and experience in various fields, the company will provide strong support to the imported brands for their development, and achieve complementary development and complementary development.

According to the company's plan, in the future, we will excavate high-level brands that meet strategic positioning on the one hand. On the other hand, we will timely intervene in the business development of the lifestyle areas suitable for the target customers.

Build multi brand marketing system combining online and offline.

The company focuses on the online exclusive brand market with the help of existing With Song, actively explores new brand building and promotion methods, and expands the target customer group scope of the company's brand. At the same time, the company will gradually build multi brand online and offline integration, mining customer groups suitable for different channels and consumer habits, expand the interaction between online and offline control data, and integrate the high coverage of the store layout, the offline service with a full range of good consumer experience, and the cost-effective and convenient online services, so as to provide customers with a variety of products and services.

It is estimated that the net profit attributable to the parent company in the 2016-18 years is 1.81, 2.10 and 243 million yuan respectively, increasing 13.48%, 15.71% and 15.77%, respectively, corresponding to EPS, 1.10, 1.27 and 1.47 yuan respectively.

Reference correlation

The valuation level was given to the company in 2016 45xPE, corresponding to the target price of 49.28 yuan, overweight rating.

The main uncertainties are: the continuing downturn in the retail market, the sluggish demand for terminals, the risk of continuous upgrading of raw materials, rentals and manpower costs.