The Three Quarterly Communique Of Nine Herding Wang: The Main Brand Keeps Growing, And Stores Continue To Adjust.

Two thousand and eighteen

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company

Net profit rose 1.9% to 350 million yuan, and net profit declined 2.6% to 320 million yuan.

2) 18Q3's single quarter income increased 2.5% to 660 million yuan compared with the same period last year, and net profit fell to 26.9% yuan to 87 million 10 thousand yuan compared with that of the previous year. The net profit declined 33.73% to 75 million 240 thousand yuan, mainly due to the new store opening investment in the three quarter of the company, the marketing publicity and research and development input of the new brand development, and the ZIOZIA brand's exchange loss.

Apart from the separation, the main brand channel adjustment of the company gradually came into place, and the number of stores increased in the three quarter.

1) the main brand of the nine herd kings declined slightly in the three quarter. The three quarterly report 9mu Wang realized income of 1 billion 700 million yuan, an increase of 2.4% over the same period last year, of which 18 Q3 achieved 590 million yuan in the single quarter, down 2.9% from the same period last year.

2) the number of stores increased. In the three quarter, the number of main brand stores increased by 15 to 2385 in comparison with the total number of Chinese newspapers, and the number of stores in the single season for the first time since 2016 has increased.

Under the pressure of consumption, the same store has been affected. According to our projections, the average efficiency of the company's main brand has dropped by about 11.6%, the average store efficiency has dropped by about 5.3%, and the average area of the store has increased by 7.2% to 101 square meters over the same period.

3) the FUN brand store efficiency and the number of stores increased simultaneously. The FUN brand three quarterly report maintained a high growth rate of year-on-year growth of 72.8%, of which the number of stores increased by 12 to 174.

The brand continues to strengthen the exposure of new media through famous star street and other activities, so as to maintain strong marketing momentum.

The three quarter increased investment in new brands and shops, and sales cost increased.

1) the profit table shows that the single quarter gross profit margin of the company has decreased by a slight decrease of 1PCT and 55.2%, and the net interest rate has decreased from 5.3pct to 13.2%. The main reason is that the sales expense rate has increased by 4pct to 26.9%, and the management and R & D expenditure rate has increased by 1.2pct to 8.6%. Meanwhile, the amount of money in the account has been reduced and the financial cost has increased.

2) according to the balance sheet and cash flow statement, the inventory of 18 quarterly three quarterly reports is 830 million yuan, which is 200 million yuan higher than that of the Chinese newspaper.

18H1 net operating cash flow decreased slightly from 4.1% to 270 million yuan, mainly due to increase in inventory and advance payments.

The ZIOZIA brand is incorporated in the three quarter, and now has 114 stores in the Chinese market and revenue of 14 million 100 thousand yuan in a single quarter. We think the brand is in Korea.

With strong brand strength, it is expected to further expand with the company's product development capability and channel development capability.

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NASTYPALM positioning designer tide card, for 25-30 year old young consumers to provide stylized, cost-effective, rapid update.

The product and lifestyle experience now has 31 stores with J1.

The company is high-end in China.

The leader will continue to upgrade at the channel end and product end to maintain the "overweight" rating.

The main brand of menswear around the five major strategic themes, constantly upgrading and optimizing the efficiency of the store, the layout of the emerging brand matrix is completed, the scale is emerging.

Considering that the overall retail environment is under pressure and the company has a certain loss of ZIOZIA, we lowered the original profit forecast. It is estimated that the EPS in the 18-20 year is 0.86/0.95/1.04 yuan (the original profit forecast is 18-20 yuan EPS is 0.99/1.13/1.28 yuan), corresponding to PE is 14/13/12 times, and the company has been maintaining a high dividend rate for a long time since its listing. In 2017, the dividend reached 570 million yuan, corresponding to the current market value dividend rate reached 8%, which is a steady high dividend variety and maintains the "overweight" rating.