In 2015, Sanfo'S Business Revenue Increased By 12.37% Over The Same Period Last Year.

In 2015,

Operating income reached 328 million yuan, an increase of 12.37% over the same period last year. Net profit attributable to shareholders of listed companies increased by 30 million 802 thousand and 100 yuan, an increase of 10.60% over the same period last year.

We believe that the overall profit level of the company will be under pressure due to the downturn in the economy and the downturn in the retail environment.

But what we should pay attention to is that the market concentration of outdoor products retail industry is gradually improving.

Differentiation is also more obvious, the company as a leading industry in the industry, sales channels are relatively perfect, large-scale operation of the establishment.

We should pay attention to the expansion of Future Ltd in outdoor clubs and outdoor tourism.

In the future, outdoor activities, event operations and outdoor travel will become a new profit growth point for the company.

The channel is king, and a mature entity shop + network sales + Club Trinity operation mode occupies the channel, and the leading position of domestic outdoor products retail is not allowed to shake.

The company takes 36 franchised stores as its business foundation, and actively develops electric and mobile Internet sales channels through self building + cooperation. It provides experience and brand establishment under the line, and covers the sales channels to cities and regions that have not opened stores, which complement each other and cooperate with Xiao Yingming.

Through the combination of offline offline, the company can provide customers with a full range of services.

Through club development members, organizing activities, promoting brands, increasing customer stickiness, nurturing outdoor products sales, thus forming a trinity of mature and effective operation mode.

Optimistic about the scale advantages and channel advantages of the company's chain operation, and the industry's leading position is hard to shake.

Further improve product structure, build a professional one-stop shopping platform to meet different customer needs, relying on strong sales channels and brand image performance is expected to achieve steady growth.

In the environment of homogeneous competition, the company promptly grasps the huge business opportunities of "running hot", "riding hot" and the craze craze, and actively introduces products such as running, outdoor children, bicycles, self driving and skiing, making up for the gaps in the domestic market, supplemented by powerful sales channels and good brand image, which is expected to bring new profit growth points for the company.

In addition, the company has strengthened its own brand design and research and development, providing outdoor enthusiasts with high quality and cost-effective products for outdoor enthusiasts, and developing new sources of revenue.

The domestic outdoor users will have great potential for growth in the future, and the outdoor products industry will usher in development opportunities. The company will be the biggest winner of the industry.

In recent years, outdoor venues (ski resorts, trails, national Forest Park, campground, rock climbing hall, etc.) have been expanding, outdoor lifestyles have been widely accepted, outdoor sports activities have been continuously enriched, outdoor sports and outdoor leisure groups have been greatly increased, and per capita consumption will be multiplied. Whether it is from the outdoor sports crowd based stock market or the outdoor leisure crowd based incremental market, it will achieve stable growth, and the overall market will face greater opportunities for development.

At present, the company is mainly engaged in chain retail multi brand and multi category outdoor sports products, and also organizes outdoor activities and outdoor events.

Future focus: (1) channel is king, the company relies on the mature entity shop + network sales + Club trinity mode of operation to occupy the channel, and the leading position of domestic outdoor products can not be shaken. (2) the domestic outdoor user population has great potential for growth in the future, and the outdoor products industry will usher in development opportunities. The company will be the biggest winner as the industry leader; (3) in the depressed environment of retail industry, future outdoor activities, event operations and outdoor travel will become a new profit growth point of the company.

Based on the future development space of China's outdoor sports industry, we expect the company's EPS in the 2016-2018 years to be 0.54 yuan, 0.68 yuan and 0.86 yuan respectively.

Taking into account the company's retail business and outdoor activities layout effect needs to be observed, no rating.

Risk warning: economic downside risk; profitability continues to slide risk.