Prada Is Actively Investing In Digital Communications And Social Media.

Magri issued a research report that the Prada Prada (01913.HK) rating rose from the big market to the big market. It was considered that the sales performance in the first half of 2017 was still affected by the macro-economy, and the geopolitical risk increased. However, the company's product quality, operational efficiency and cost control were improved. The profit forecast for the 2017 year was 3%, 2018 in 30%, and the target share price rose from 18 yuan to 33 yuan.

Prada has been in the bottom since last year.

In the first half of this year, the group's turnover declined in the global region, with the overall decline of 15% to 1 billion 500 million euros, net profit plunged 25% to 141 million 900 thousand euros, and operating profit dropped by 27% to 213 million 700 thousand euros.

At present, Prada has begun to repair the overexposure of brands and reduce the number of shops in mainland China and Hongkong.

In addition, the Group actively invests in embracing digital communications and social media, attracting new customers and millennial consumers. Last year, Prada and Miu Miu achieved special effects on social media investment last year.

The number of fans increased by 167% to 6 million 900 thousand. At the same time, Prada also re examined and focused on the mainland market. In February, the group opened official micro-blog on Sina micro-blog.

The bank pointed out that its handbag business accounted for 60% of the core brand of Prada, and sales are improving at present. Sales of Miu Miu shoes are also showing signs of growth.

Analysts said the survey found that some Prada handbags were available only in October. It is believed to be a strong positive message. Handbags will help drive sales and profit growth. It is expected that same store sales will be flat in 2018, while the first half of 2019 will return to positive growth.

The bank also pointed out that Prada management emphasized in the roadshow.

Sales performance improved, operation efficiency of Hongkong market was also improved, Asia's EBIT core profit margin remained the highest, while China was the highest.

The company improved its gross margin by improving its supply chain and increasing its home grown products.

At the same time, through staff turnover, rent adjustment and better administrative expenditure control, the cost is also decreasing. The expected operating profit will reach 12% in the second half of 2017, and then rise to 15% and 17% in the next two years, which is closer to 16% of the luxury industry, but still lower than the average of 22% in the past five years.