In 2018, Only 200 Million Of Net Profit Of Red Beans Was Close To The Level Of UNIQLO On The Basis Of "Cost Performance Ratio".

The leading producer of local men's clothing, Jiangsu red bean industrial Limited by Share Ltd (hereinafter referred to as "red bean stock") issued a performance notice in the evening of January 30th. The company expects that the net profit of the Company attributable to shareholders of Listed Companies in 2018 will be 200 million yuan to 219 million yuan, which will be reduced from 389 million yuan to 408 million yuan compared with the same period last year (the annual statutory disclosure date in 2017), representing a decrease of 63.97% to 67.1% over the same period last year.

The notice shows that the net profit from non recurring gains and losses attributable to shareholders of listed companies between January 1, 2018 and December 31, 2018 is 162 million yuan to 181 million yuan, which will increase from 1 million yuan to 20 million yuan compared with the same period last year (2017 annual statutory disclosure data), an increase of 0.62% to 12.42% over the same period last year.

The shares of Hong Kong stock were restated in the same period under the same control.

After preliminary calculation by the financial department of the company, it is estimated that the net profit attributable to shareholders of Listed Companies in 2018 will be reduced by 391 million yuan to 410 million yuan compared with the same period last year (the annual retroactive adjustment data in 2017), a decrease of 64.09% to 67.2% from the same period last year. The net profit excluding the non recurring gains and losses attributable to the shares of the listed company will increase from 1 million yuan to 20 million yuan compared with the same period last year (2017 annual adjusted data), an increase of 0.62% to 12.42% over the same period last year.

It is reported that in the same period of last year, the 60% stake of Wuxi red bean Real Estate Co., Ltd., which was held by the red bean stock sale, achieved an investment income of 426 million yuan (a non recurring profit and loss, mainly for valuation appreciation). During the reporting period, the company did not deal with such shares, leading to a decrease in net profit attributable to shareholders of the company in the current period compared with the same period last year.

After deducting the above effects, the company expects the net profit attributable to shareholders of Listed Companies in 2018 will increase by 18 million 366 thousand and 500 yuan to 37 million 366 thousand and 500 yuan compared with the same period last year (2017 annual statutory disclosure data), an increase of 10.11% to 20.56% over the same period last year, and an increase of 16 million 399 thousand and 500 yuan to 35 million 399 thousand and 500 yuan compared with the same period last year (2017 annual retrospective adjustment data), an increase of 8.93% to 19.27% over the same period last year.

According to the financial report, in the first three quarters of 2018, Hong Kong shares realized a business income of 1 billion 692 million yuan, down 15.18% from the same period last year, which was mainly affected by the divestage of Hong Kong Equity in May 2017.

Excluding real estate business, business income has been increasing rapidly since 2015, and the growth rate is the first place since 2016.

The men's wear of the company is growing rapidly, and the professional wear has great potential for growth, and it is expected to be incorporated into other group clothing businesses such as red beans in the future, and is expected to maintain a higher growth rate.

Huang Shuyan, a securities analyst at the Great Wall, said that the gross profit margin of Hong Kong stock company has increased steadily since 2016, which is mainly related to the lower real estate business with lower gross margin and fluctuating.

However, due to the company's product positioning, public clothing, its own price increases are low, and the current sales mode changes and information construction investment in the early stage, the gross profit margin of the company is still lower than that of the company. It is expected that with the scale effect gradually highlighting, the cost of procurement, warehousing and other aspects of the company will decline, and the gross profit margin is expected to go up.

The net interest rate of the company has been on the rise since 2015. The net interest rate level in 2017 has been highlighted mainly in the sale of the red bean real estate stock and the thickening of the investment income. With the refinement of the supply chain management, the overall operating efficiency of the company is expected to increase, and the net interest rate is expected to continue to rise.

Huang Shuyan believes that the red bean products positioning men's clothing, including suits, trousers, shirts, T-Shirts, jackets, sweaters, down clothing and other all men's clothing category.

From the perspective of consumption structure, the company's products and Mens overall consumer price bands are highly coincident. According to the calculation, the correlation coefficient is as high as 0.94, and the future sales volume growth is huge.

At the same time, the price advantage of products is outstanding, and the rate of increase is expected to be between 2-2.5 times, near the level of UNIQLO.

It is understood that Hong Kong shares began to implement the pformation from chain store to monopoly mode in 2013. However, the initial expansion speed was slow, mainly because the company originally planned to persuade the old franchisee to pform to the new franchisee, but the old franchisee had strong sales experience and strong personal power and resources, resulting in a strong willingness to pform the financial franchisee.

Since 2014, the management of the company has abandoned the more conservative channel development strategy, vigorously developed new franchisees, and the number of channels has expanded rapidly.

As of the three quarter of 2018, Hodo men's clothing had 1267 offline channels, 174 stores opened in the first three quarters, and around 200 stores were opened throughout the year. In the next few years, it is also expected to keep pace with this year's opening up.

From the earnings report, in the first three quarters of 2018, Hodo menswear single store income increased by 4.7% over the same period, and the number of stores increased by 23.4% over the same period last year, and business income increased by 29.1% compared to the same period last year.

Huang Shuyan predicted that the fourth quarter is similar to the three quarter. It is expected that its single store revenue will grow in the median, and the number of shops will increase by 15-20%. The growth rate of Hodo men's clothing next line is expected to be around 20%-25%, and the revenue side is expected to maintain rapid growth.

In Huang Shuyan's view, the Hodo menswear business will continue to grow rapidly, benefiting from the expansion of store size and the steady improvement of store efficiency.

In addition, the growth potential of Hodo professional wear is huge. With the increase of investment, the scale of revenue in the next few years is expected to maintain a high growth trend.

The gross profit of OEM is relatively low. It is expected that the volume will slowly shrink in the future. Printing and dyeing business is expected to grow at a low speed because of production demand.

Public information shows that Hong Kong shares are well-known domestic men's wear faucet, founded in 1995, and listed on the main board of the Shanghai Stock Exchange in January 2001.

As an early established domestic private apparel enterprise, the company has strong brand influence.

The trademark of "red bean" and "Hodo" has been identified as China's well-known trademark. In 1994 and 2015, it was certified as "the ten largest brand of Chinese men's clothing". In the 500 ranking list of China's 500 most valuable brands released by the June 2018 World Brand Laboratory, the red bean brand ranked eighty-first.