In The First Half Of The Year, Net Profit Fell Or Exceeded 30%.

Local "mother and infant first share" golden hair Rabbi maternal and child products Limited by Share Ltd (hereinafter referred to as "golden hair Rabbi") released the first half of 2019 performance forecast in July 15th. The company expects net profit of 1-6 yuan in 2019 to 24 million 697 thousand and 600 yuan to 31 million 754 thousand and 100 yuan, compared with 35 million 282 thousand and 300 yuan in the same period last year, down 30% to 10% over the same period last year.

Blonde Rabbi said that the above prediction is based on the following reasons: the golden hair Rabbi maternal and child products Limited by Share Ltd (hereinafter referred to as the "company") is expected to decline in the semi annual performance in 2019, and the decline in the half year results is mainly due to the fact that the company has been making great efforts to optimize the sales channel and speed up the establishment of Direct stores in 2018, and the new outlets are still in the breeding stage, and sales have not yet reached the expected level. Meanwhile, the fixed expenses of new direct stores are increasing.

Public information shows that as one of the leading brands of mother and baby in China, blonde Rabbi has been involved in the maternal and child industry for 30 years. It has the following three major brands: middle and high-end brand Rabbi, mid-range brand next generation, infant and child care products, babby Rabbi, and focuses on infant and female consumer products. At present, there are 1368 online outlets of the blonde Rabbi, and online businesses cover many electronic business platforms such as Taobao, Tmall, Jingdong, vip.com, NetEase koala, suning.com and so on, and sales network covers China's domestic market.

Financial reports show that in 2018, blonde Rabbi achieved operating income of 454 million yuan, an increase of 5.49% over the same period, a net profit of 39 million 510 thousand yuan, a decrease of 56.85% compared with the same period last year. Net profit fell sharply, mainly because the Jiangtong media invested by the company was not as good as expected in 2018, and it was preparing 30 million 410 thousand yuan for its related sale of financial assets.

In the first quarter of 2019, blonde Rabbi achieved operating income of 92 million 90 thousand yuan, down 6.7% compared to the same period last year, and realized net profit of 14 million 960 thousand yuan, a decrease of 28.5% compared with the same period last year. Net profit after deducting the net profit was 13 million 70 thousand yuan, down 31.8% compared with the same period last year, and its performance was under pressure.

In the first quarter of 2019, the gross profit rate of the blonde Rabbi increased by 3.2pp to 56.5%, but the sales cost increased by 34.7% during the same period, and the sales cost increased by 9.2pp to 29.8%, resulting in a net interest rate decline of 5pp to 16.3%. Analysts believe that the increase in sales costs is mainly due to the increase in the number of direct sales of blonde Rabbi compared to the same period last year, and the increase in shop costs and promotional expenses.

The blonde Rabbi has a differentiated positioning of the top three brands, the middle and top brands, the rabbi, the mid-range brand next generation and the baby care products. Judging from the product category, as of the end of 2018, the proportion of baby clothing and baby cotton products remained stable. Other maternal and infant supplies (maternal and infant care products) grew rapidly, increasing by 37.3% compared with the same period last year, and the share of revenue rose to 25.5%. Channels, the company has formed a "self + affiliate + e-commerce + micro business" full channel marketing mode, the formation of offline shopping malls, shopping centers and brand exclusive stores, online flagship stores supplemented by the compound marketing mode. By the end of 2018, there were 253 rabbi and the next generation outlets, 1115 franchises and 1368 terminal image stores covering one to four tier cities in China. "BABYLABI" is a wholesale business. The company also makes full network marketing through its own platform and Tmall, Taobao, Jingdong, vip.com, NetEase koala and micro businesses, and promotes online and offline marketing to cooperate with each other.

Li Jie, an analyst at Everbright Securities, believes that the maternal and infant consumer goods industry in which the blonde Rabbi has been in recent years has benefited from a sustained boom in consumer spending. Looking forward to the future, the relaxation of the reproductive policy will bring short-term benefits. In the medium and long term, under the background of the decline of childbearing desire in the process of urbanization and the reduction of the number of women in childbearing age, the overall trend of population fertility rate is downward, and the driving force of industrial growth comes from the continuous upgrading of consumption.

On the revenue side, the blonde Rabbi online operation team continues to optimize and the offline channel gradually expands from the early expansion mode to the direct, flat and fine development. The proportion of direct investment is expected to improve. The online and offline channel adjustment has been continuously optimized, and the channel adjustment has affected short-term performance. But the company's overall operational efficiency has been enhanced for a long time and the revenue side of the company has been waiting for improvement. From the aspect of cost rate, the direct mode is conducive to strengthening the terminal management and control of the blonde Rabbi, and increasing the short-term sales cost rate at the same time. The management fee rate has been completed in 2018.

Li Jie pointed out that the future blonde Rabbi will continue to promote the layout of the ecosystem, and cooperate with the high-quality resources of the industry chain with the blonde Rabbi industry. Short term channel adjustment affects the performance of short-term net profit, such as income performance, equity incentive cost amortization and investment target risk assets impairment provision. Long term companies focus on product development and tamper with competition barriers in the field of baby and baby industry chain, and focus on product competition. After adjusting and optimizing the channel, performance improvement is expected. However, as the channel is still in the process of adjustment, the income side and cost side will be affected, and the risk of external investment target performance is uncertain, it is expected that in 2019, the electricity supplier channel will continue to add momentum to the development of the golden hair rabbi.

As of today's press release, blonde Rabbi reported 5.60 yuan / share, or 0.36%, and its market value was 1 billion 983 million yuan. As of the end of the first quarter of 2019, the number of shareholders of the blonde Rabbi reached 20 thousand and 100, an increase of more than 1000 households compared with the previous period, with an average household holding 17 thousand and 500 shares.