Three Magic Weapons To Help Taiping Birds Take Off

According to the world clothing shoes and hats net, the company is mid-range.

Casual dress leader group, leisure in China

The market share is fifth.

1) the company's clothing category includes

Men's wear, children's wear, PEACEBIRD ladies wear, Lok Ting, Material Girl, PEACEBIRD men's wear, AMAZING PEACE, Mini PEACE six major brands.

2) in the 11-15 year, the company's operating income increased by 35%, and the net profit compound growth rate was 55%. In the 16 year 1-9 months, the operating income increased 4.4% to 3 billion 900 million yuan, and the net profit from the parent company decreased by 13.3% to 240 million yuan.

The decline in performance in the 16 and 1-9 months was mainly due to poor sales of franchising channels and the adjustment of women's clothing brands. More revenue from new direct outlets had not yet covered the cost, and the provision for impairment of inventories was due.

At present, the growth rate of franchisees has been gradually restored, and the profit declines have eased, and future performance is expected to rebound.

The company expects annual revenue of 62-64 billion yuan in 16 years, an increase of 5%-8.4% over the same period, and net profit of 3.5-3.8 billion yuan, down 13.7%-20.5% compared with the same period last year.

3) the actual control of the company is Zhang Jiangping and Zhang Jiangbo brothers, the stock incentive is sufficient, the whole team is young and innovative.

Brand end: from the perspective of "price + age + Category", the company builds three different development gradients and a reasonable brand matrix to form "core brand, emerging brand and start-up brand", effectively covering consumers, and has the potential and advantage of rolling development.

1) women's wear: PEACEBIRD dress (core brand, revenue in the first half of 16 years, 1 billion yuan, in the period of adjustment and pformation), Lok Chai women's clothing (new brand, 16 yuan in the first half of the year to achieve 300 million yuan, rapid development), Material Girl (initial brand, 16 yuan in the first half of the year to achieve 32 million 10 thousand yuan, rapid growth, but not yet profitable).

2) men's wear: PEACEBIRD men's clothing (core brand, revenue of 900 million yuan in the first half of 16 years, steady development), AMAZINGPEACE (initial brand, 8 million 400 thousand revenue in the first half of 16 years, still in development stage).

3) children's wear: MiniPEACE (new brand achieved revenue of 200 million yuan in the first half of 16 years, explosive growth).

The company also shares in the French high-end custom brand Alexis Mabille, and is expected to enter the high-end customization field in the future, providing consumers with a higher level and more professional fashion choice.

Channel end: the company implements the four wheel drive strategy. "Street shop + department store + Shopping Center store + online sale" covers the consumer group in an all-round way. It adjusts sales channels closely along with the changing trend of retail formats. The proportion of sales of traditional street stores and department stores is declining, and the proportion of shopping centers and online sales is gradually improving.

1) Street store: retail sales amounted to 1 billion 190 million yuan in the first half of 16 years, and sales decreased to 26%.

2) department stores: retail sales amounted to 1 billion 660 million yuan in the first half of 16 years, and sales accounted for around 37%.

3) shopping center: retail sales amounted to 1 billion 100 million yuan in the first half of 2016, an average annual compound growth rate of 70%, and sales accounted for 24%.

4) online sales: retail sales amounted to 550 million yuan in the first half of 2016, and sales increased to 12%. 16 years, "double eleven" achieved retail sales of about 615 million yuan.

The company also set up a O2O project team to develop cloud storage system, layout O2O business, integrate online and offline, and better satisfy consumers' shopping experience.

Operation side: strengthen R & D strength, strengthen supply chain management, and move closer to "fast fashion".

1) fast: the company continuously strengthens the management of the supply chain, promotes the new speed of the brand, and ensures that the retailer stores the new products every 1-2 weeks.

2) fashion: the R & D team visited the global fashion city and the domestic market at a high frequency, and promptly perceived the needs of consumers. In 2015, more than 8000 new products were launched into the market, and the products sold at a high rate.

The company intends to issue 55 million shares, raising net capital of 1 billion 81 million yuan for marketing network construction project (580 million yuan), Taiping bird East clothing finishing Logistics Center Project (350 million yuan) and information system construction project (150 million yuan).

The company is a leading group of mid-range fashion casual wear, innovative ideas, "multi brand + cross category + differentiated price" to meet consumer demand, build brand gradient to ensure the company's rolling forward, and channel four wheel drive to omni-directional consumer groups. We are optimistic about the company's market share and market value.

It is estimated that EPS will be 0.93/1.21/1.56 yuan after 16-18 years' full dilution. We give the company a reasonable valuation interval of 35-40 times in 2017, corresponding to the company's reasonable price range of 42-48 yuan.

Risk Disclosure: low consumption environment, failure to grasp the trend of casual wear, inventory management and inventory price decline. This is a special reminder: the price of new shares predicted in this report is not the price performance on the first day of listing, but the reasonable price range when the existing market environment remains basically unchanged.

More interesting reports, please pay attention to the world clothing shoes and hats net.