Bosideng Intends To Cash Back Shares Of The Company, Highlighting The Company'S Long-Term Development Confidence.

On the evening of December 20, 2019, Bosideng international apparel (China) Co., Ltd. (hereinafter referred to as Bosideng) issued a notice. The board of directors formally decided to exercise the share repurchase authorization and will repurchase shares in the open market, not exceeding 10% of the total issued shares in August 26, 2019.

In this regard, Fang Yi Fang Feng Yi team analyzed that the buyback could highlight Bosideng's confidence in its own business prospects and prospects, create benefits for shareholders and create value for shareholders. The company's board of directors exercised its share repurchase rights in December 20, 2019, not exceeding the total number of shares issued on that day (August 26th) in 10%. According to the current price of 2.92 yuan, the company may invest no more than 3 billion 128 million yuan to buy no more than 1 billion 70 million shares. Because the company's existing financial resources can support the share repurchase and maintain a healthy financial position, Bosideng will provide funds for repurchase shares from the cash reserve available from its business activities.

The main brand continues to upgrade, and the channel structure is gradually optimized.

The company launched in 2018 focused on the main channel, focusing on the main brand, shrinking diversification strategy, eliminating diversified clothing business, vigorously developing down garment main industry, and a number of recovery and reform measures to promote the upgrading of products, marketing, channels and supply chain. The 2019 fiscal year revenue and net profit of the parent company reached 103.84 and 981 million yuan respectively, up 16.84% and 59.4% compared with the same period last year.

(1) product side: functional trend fashion trend, enhance the price band. Bosideng's main brand, on the one hand, has launched the fashion week series products, cooperative artists and Hermes designers for two consecutive years in the international fashion week. On the other hand, it has gradually increased the price of products. The sales volume of products under 1000 yuan and more than 1800 yuan increased by -35.4pct, 19.3pct to 12.1% and 24.1% respectively, and the 1000-1800 yuan main price increased by 63.8%.

(2) marketing side: fashion marketing resources are further strengthened. In 2019, he continued to enter the fashion week of Paris. She signed a famous actress Yang Mi as a spokesperson for the designer. He also worked with international film stars, Tom, Johnston and Scarlett, Johnson.

(3) channel side: increase the proportion of self owned stores, add shopping center stores, shopping center stores accounted for double digits, Future Ltd will gradually increase the penetration rate of shopping centers, and predict that the number of shopping centers in the next two years will reach 30% of the total number of outlets. The electricity supplier has continued to grow at a high level, and the double eleven show brightest.

(4) supply chain end: two weeks quality quick response. The order of the down jacket of the company can be formed through the rapid replenishment of the pull type, the rapid increase of new products, and the quick turnover of small bills. The peak sales season can also achieve a two week quality quick return supply, effectively improving the rate of goods sold out and reducing the risk of inventory.

Fangyi Textile Group Feng Yi team expects that the net profit of the company in 2019/2020/2021 is 13.49/17.23/21.49 billion yuan, the growth rate is 37.5%/27.66%/24.74% in the same period, corresponding to P/E is 23/18/15, giving the "recommended" rating. In terms of venture capital, Fang Yi Fang's Feng Yi team thought that the progress of the buyback was not as good as expected, and that the market accepted less than the expected price.

Author: Fang Yi Fang Feng Yi team