Q3 Net Profit Rose Nearly 6 Over The Same Period.

In September 15th, 002832.SZ released the first three quarters of 2019 results forecast, the company's net profit during the reporting period recorded a substantial increase again.

Stimulated by this news, the company's share price jumped 5.69% in September 16th and went straight to the limit. As of today's close, the stock price is now 26.88 yuan / share, which is 249 million yuan a day and the latest total market value is 8 billion 287 million yuan.

The performance of the company continued to grow.

Statistics show that the Limited by Share Ltd was founded in January 2003 and successfully launched in December 2016. The company is mainly engaged in R & D design, brand promotion, marketing network construction and supply chain management of golf costumes, its main products are self brand bryin Golf and Venice brand clothing.

As of June 30, 2019, the controlling shareholder of the company was Xie Bingzheng, with a shareholding ratio of 41.35%, and its actual controllers were Xie Bingzheng and Feng Lingling. Hongkong Central Clearing Co., Ltd. (Lu Gutong) is its new shareholder.

Specifically, the company expects to achieve a net profit of 130 million yuan -1.38 billion in the third quarter of 2019, representing an increase of 55%-65% compared with the same period last year.

Judging from the performance of the first three quarters of this year, the company expects net profit of 303 million yuan -3.12 billion yuan during the reporting period, an increase of 47.28%-51.33% over the same period last year.

With regard to the substantial growth in performance, the company said that the company continued to increase investment in product research and development, and its competitiveness continued to improve. At the same time, it increased brand promotion, optimized marketing network construction and supply chain management, strengthened staff training, and continued to introduce the employee stock ownership plan incentive plan to enhance the cohesion of the team so that sales performance continued to grow.

In fact, in the past 10 years, the net profit of the company has been growing. In 2011, this index was 44 million yuan, compared to 292 million yuan in 2018, an increase of 6.64 times.

From the data of gross profit margin, except for 56.24% in 2011, the index in other years in the past ten years is above 60%. In the first half of this year, the company's gross profit margin reached 67.46%.

In the overall downturn of the garment industry, the performance of the company is very good, mainly because the company's main golf apparel is a subdivision of the brand clothing industry. In recent years, consumption upgrading has catalyzed the rapid growth of this subdivision track.

However, while the net profit continues to grow, the inventory of the listed company is also increasing significantly. In 2011, this index was only 109 million yuan, but in 2018 it reached 622 million yuan, accounting for 34.31% of current assets.

Judging from the past situation of the industry, there are many listed companies in the clothing industry who are in great losses due to high inventory.

In addition, the sales cost of the company is increasing year by year. It has increased from 75 million yuan in 2011 to 438 million yuan in 2018, an increase of 5.84 times.

It is worth mentioning that in September 12th, the company announced that the company would not raise more than 689 million yuan for Switching Company's public offering, of which 320 million yuan would be used for the construction and upgrading of marketing network.

How do institutions view the market?

After the announcement of the first three quarters of 2019, a number of brokerages issued views on the future market:

Tianfeng securities reported that the performance in the first three quarters of the market exceeded market expectations. The company owns the brand and brand new Carnival of Venice. The main brand positioning the middle class and above people, the product has the sports business style, at the same time has the characteristic in the design, the fabric, the color and the style, has the obvious difference compared with other brands in the market, the competition pressure is smaller, the organization thinks that is the superior enterprise on the track. The new brand positioning holiday travel apparel this blue ocean market, focus on building products such as parent-child, couples and family wear, will continue to contribute to the performance in the future.

In addition, the Tianfeng Securities researcher believes that the space for the opening of the shop is about 1500-2000, while the 2019 China Daily shows that the company has 798 terminal sales outlets, and the Future Ltd still has room to open.

The agency expects net profit of 2019-2021 yuan to 4.1/5.4/6.9 billion yuan; 2019-2021 years EPS is expected to be 1.34/1.76/2.23 yuan, giving 30 times the value of 2019, corresponding to the target price of 40.2 yuan, to maintain the buy rating.

Guosheng securities research group said that compared to the positioning of sports fashion segmentation market, Q3 growth is expected to accelerate. With the expansion of channels and operational efficiency, business profit growth in the second half of this year is expected to increase. Recently, the company has also been included in the FTSE Russell index and the S & P emerging market index, which is expected to form a catalyst.

Maintain 2019/2020/2021 net profit 4.08/5.16/6.38 billion yuan forecast, corresponding to EPS1.32/1.67/2.07 yuan. The current price is 24.44 yuan, corresponding to 19 PE19 times, to maintain the "buy" rating.

Soochow securities researchers pointed out that if excluding income tax preferences (according to the estimated 19Q3 income tax rate of 15%), the pre tax profits of Q3 were increased by 39%-48% compared with single quarter, and the strong growth came from excellent retail performance and continuous single store efficiency. In the whole year, it is expected that the main brand store will increase by 80-100, and the Venice brand store will increase by 30-40. In addition, the two big weight index has been selected, and the incremental funding is expected to come in the future.

The company expects the company's 19/20/21 profits to increase from 41%/28%/23% to 4.1/5.2/6.4 billion yuan, corresponding to PE 18/14/12X, and continue to be optimistic about the company's track and growth and maintain the "buy" rating.