The Growth Rate Of 2019 Was Higher Than That Of Net. The Net Profit Increased By 40% Over The Same Period Last Year.

Recently, the leading brand of golf costume in China has reported faster than that of the company. In 2019, the company realized gross profit, operating profit and net profit attributable to shareholders of listed companies by 18.26, 4.76, and 409 million yuan, an increase of 23.70%, 41.16% and 40.04% over the same period last year. Performance is in line with expectations. Based on this calculation, 2019Q4 company's revenue, operating profit and net profit of parent company increased by 20.53%, 87.07% and 13.65% respectively.

According to Fangyi Fang Feng Yi team analysis, the 2019 battalion higher growth, especially in the fourth quarter, operating profit and pre tax profit growth rate. In 2019, due to the active development of online and offline channels, the integration of various marketing methods, the increase of R & D investment and the introduction of employee motivation, the company continued to achieve rapid growth.

In terms of performance, because of the one-off adjustment in the fourth quarter of 2018, if the tax rate was not considered, the company's operating profit and pre tax profit increased by 87.1% and 73.6% respectively.

In terms of channel, it is estimated that by the end of 2019, 875 stores in the city (including 816 brands of brink and Venice brand, 59), and 111 more than the beginning of the year, 875. It is estimated that the 2019 brand and Venice brand stores will increase by 100 or 20~30 in the whole year, and the number of channels is expected to be 10%+ compared to the same period. Meanwhile, the growth rate of the same store is expected to reach 10%+.

In terms of earnings, the rate of net increase in ROE increased significantly: in 2019, the company's net interest rate increased by 2.62pct to 22.42%, and ROE increased from 4.12pct to 23.26% in 2018, to 23.26%. Earnings growth is expected to be related to a higher discount rate.

In addition, the high-end sports and leisure industry in Belgium has high growth, excellent products and perfect membership system.

(1) the high-end sports and leisure industry is growing at a high level: since the rapid growth of sports participants in 2014, the number of high-end sports and leisure brand stores is limited, the scale of overseas brands is small, and there are obvious competitive vacancies. High-end sports and leisure brands tend to maintain high growth.

(2) the company's products are excellent and membership system is perfect: the proportion of company members is expected to be around 60%, the rate of repeat purchase is relatively high, and the products are popularized through the VIP community, live broadcasting and carrying goods, and the "the Imperial Palace" launched in 2019 has become the explosive payment.

(3) continue to implement the second phase of the employee stock ownership plan, showing confidence: the second phase of the employee stock ownership plan covers 900 people, which is 600 higher than that of the first phase.

(4) the two largest global index: the company became one of the 87 A shares newly incorporated into the FTSE Russell index in September. In September 7th, the S & P Dow Jones index company announced that the 1099 A share listed companies including the company should be included in the emerging market index BMI.

Regarding investment, Fangfeng's Feng Yi team expects the net profit of 2019/2020/2021 to be 4.09/5.10/6.26 billion yuan in the year of 2019/2020/2021, a year-on-year growth rate of 40.04%/24.71%/22.68%, corresponding to EPS 1.33/1.66/2.03 yuan / share, corresponding to P/E as 17/14/11, and maintaining "highly recommended" rating.

In terms of risk, Fangyi Fang Feng Yi team analyzed that there were three risks of road consumption fluctuation, high inventory and new brand development.

Public information shows that the main design, research and development and sale of high-end market sportswear by the company are owned by two brands of bron and Venice. It was listed on small and medium board in Shenzhen in December 2016. At present, there are nearly 800 terminal sales outlets in 31 provinces and autonomous regions of the country.