Taiping Bird Net Profit Is Expected To Decline By 4% In 2019, With More Than 1600 Outlets.

After a record high of operating income and net profit in 2018, Taiping bird ushered in a decline in net profit.

Ningbo's Taiping bird fashion dress Limited by Share Ltd (hereinafter referred to as "Taiping bird") released the 2019 annual performance notice in January 9th evening. The company expects to achieve net profit of 550 million yuan in 2019, which is attributable to shareholders of listed companies. Compared with the net profit of 572 million yuan in the same period last year, it is expected to reduce about 4%. The net profit of deducting non recurring gains and losses attributable to shareholders of listed companies is about 350 million yuan, down 11% from the same period last year.

Taiping bird said that the main reason for the change in performance was the slowdown in the company's revenue growth. The increase in direct channel led to the increase in rental costs, coupled with the company's increased investment in brand building, and the liquidation of some long-term and long-term losses. The business income tax on the unrecognized losses in the previous year was recognized during the current period. The non recurring gains and losses increased, resulting in a decrease in the current operating profit.

It is undeniable that in 2019, Taiping bird paid special attention to the direct store. According to the announcement, in the three quarter, Taiping net opened a total of 11 shops, including 36 outlets, 23 stores and 2 stores. By the end of the three quarter of 2019, Taiping bird store opened 109 stores, joined 255 stores, and increased profits from single stores. By the end of the reporting period, the number of Taiping bird shops was around 4500, of which more than 1600 were direct outlets.

However, looking back at the overall performance of Taiping bird in 2019, net profit fell from the first quarter. Among them, in the first quarter of 2019, the net profit of Taiping bird was 86 million 589 thousand and 600 yuan, down 34.90% compared with the same period last year. Net profit in the first half of 2019 was 132 million yuan, down 33.06% compared with the same period last year. Net profit in the first three quarters of 2019 was 207 million yuan, down 26.78% compared to the same period.

It is worth noting that the Taiping bird has been facing a slowdown in operating revenue since 2016. Statistics show that in the 2014-2018 years, Taiping bird realized business income of 4 billion 999 million yuan, 5 billion 903 million yuan, 6 billion 320 million yuan, 7 billion 155 million yuan and 7 billion 712 million yuan respectively, representing 30.48%, 18.09%, 7.06%, 13.07% and 7.78% respectively.

GF Securities analysts believe that according to the performance forecast data, Taiping bird's quarterly net profit growth rate shows a quarterly improvement trend, but there are many other risks besides industry competition, such as: TOC project is less than expected risk, inventory risk and risk of flow trend change.