Cotton Textile Products With A Gross Profit Margin Of Over 41% Of The Baby Room, 2019 Revenue Of Over 2 Billion!

Located in the high-end maternal and child market, the "maternal and child retail first share" Shanghai love baby room business service Limited by Share Ltd (hereinafter referred to as "love baby room") released the 2019 annual report today (March 26th). During the reporting period, the company achieved operating income of 2 billion 460 million 365 thousand and 100 yuan, up 15.22% over the same period last year, and realized the net profit attributable to shareholders of listed companies 154 million 247 thousand and 600 yuan, an increase of 28.55% over the same period last year. The net assets belonging to shareholders of listed companies are 1 billion 13 million 690 thousand yuan, up 14.48% over the same period last year, and the basic earnings per share were 1.10 yuan, up 20.88% over the same period last year.

Public information shows that the baby friendly room is a mother and child retailer providing one-stop mother child baby purchases and pregnancy and infant services. The company was established in 2005. Among the maternal and child products and related services, milk powder and supplies are the most important and important drainage products. The company's channel construction is mainly based on stores, and it also takes into account e-commerce, wholesale and other businesses. In recent years, e-commerce has developed rapidly and has been able to integrate well with offline stores.

The results showed that the operating income of the baby friendly room grew steadily. In 2013, the sales revenue reached 1 billion 1 million yuan. In 2018, the sales revenue reached 2 billion 135 million yuan, and the compound growth rate of 5 years was 16%. The growth of the company's revenue is mainly due to the expansion of the development scale of the benefited stores, and the growth of single store through good marketing ability and product structure adjustment. Corporate net profit growth is higher than income growth. In 2013, the company realized net profit of 44 million yuan, realized a net profit of 120 million yuan in 2018, and a compound growth rate of 22.22% in 5 years. On the one hand, the growth of the company's net profit is due to the continuous growth of the company's stores and the profit growth driven by the growth of the revenue scale. On the other hand, with the expansion of the company's sales scale, the overall operational efficiency is improved, and the gross profit margin brought by the upgrading of the company's product structure is raised.

The products sold in the baby friendly room mainly include milk powder, category, cotton spinning, food, toy, lathe, baby massage and other business. Among them, the largest proportion of milk powder and category is also an important drainage product. In 2018, the company accounted for 46% of milk powder revenue and 33% of gross profit. Company income accounted for 25%, gross profit accounted for 20%.

Zhejiang Merchants Securities analyst Yu Jian believes that the main driving force for the growth of the baby friendly room is not purely for the expansion shop. First of all, the baby friendly room uses the full direct camp mode to limit the shop opening speed to a certain extent. Secondly, the love baby room is located in the high-end mother infant chain channel, and the member quality has obvious competitive advantages, but at the same time, it limits the rapid growth of the membership. In addition, the growth rate of mother infant market has slowed down, and the profit margin of mother child chain single store in different regions is relatively large, so the more competition between mother and infant channels is the level of meticulous operation, rather than the ability to rapidly expand stores.

In the judgement of Yu Jian, the main driving force for the growth of the baby friendly room is the upgrading of store efficiency. The mode is to focus on the selling mode of goods and transform it into a single customer economy which is equally important to the development of goods and services. It is expected that the company will develop the single customer economy through "optimizing services + all channel construction + extension category". As of the first three quarters of 2019, the total number of members of the baby friendly room reached 3 million 690 thousand. The rate of repurchase of members reached 60% in one year, and the unit price was 300 yuan. The company launched the MAX membership card in 2019, and sold 6-7 MAX membership cards in the first three quarters of 2019. In early 20, it was upgraded to MAXpro membership card to further increase membership interests. A rough estimate is that MAXpro+MAX membership accounts for about 3% of the total membership, and the price per passenger is higher than that of ordinary members. It is estimated that the average store efficiency of Shanghai and other regions is around 12 million /600-700, and the proportion of MAXpro members is rising. The price of the baby room is expected to improve continuously, and the opening effect will be improved.

The baby friendly room originated in Shanghai, with Shanghai as its base camp, focusing on the surrounding areas of Zhejiang, Jiangsu and Fujian. In recent years, Zhejiang and Jiangsu have been growing faster, especially in Zhejiang, where 30%-40% growth has been maintained. From the perspective of sales market share, Zhejiang and Jiangsu are also improving rapidly. In 2013, Zhejiang accounted for 7%, while Jiangsu accounted for 7%, accounting for 14%. In the half year of 2019, Zhejiang accounted for 16%, while Jiangsu accounted for 14%, accounting for 30%, compared to 2013.

At the end of the reporting period, the first textile network reporter learned from the announcement today that the baby friendly room has opened 297 Direct stores, with a contract area of 173693.73 square meters.

Yu Chunsheng, a researcher at Guo Hai securities, believes that the chain operation mode of multi regional and multi store chain stores with mother and child franchised stores, as well as the advantages of on-site service experience, smooth information communication, one-stop shopping, and after-sale guarantee, are also more trusted and favored by consumers. For brands, chain stores have better salesperson's ability to promote products and the ability to undertake parent child activities with extensive customer resources, which is also more popular among brands. Compared to small regional mother child franchise stores, chain stores have advantages such as low cost and high brand trust under the standard of operation, so it is easier to expand the market.

The baby friendly room also said that in 2019, according to the business plan and the construction of investment and investment projects, combined with the consumption trend of business circle, the company continued to speed up encryption and expand direct stores in Shanghai, Jiangsu, Zhejiang, Fujian and other regions. The layout of the southwest market and the completion of Chongqing Tae Cheng's 18 store mergers and acquisitions, the Pearl River Delta market and the Shenzhen first store landed, and 73 new stores were opened throughout the year, mainly for shopping malls. We actively eliminated 17 stores that did not meet the requirements of development, with a total net growth of 56 and a total of 297 stores. The management team of the company has paid equal attention to the endogenous growth and the extensive merger and acquisition, and has expanded steadily. The regional direct stores have made steady profits and managed well, and the company has realized the further expansion of the revenue scale.

The earnings report also shows that the love room has maintained a relatively high level of income and profits in recent years. From 2013 to 2018, the compound growth rate of revenue was 16%, and the net profit compound growth rate was 22%. Net profit growth is much higher than income growth, mainly benefiting from the cost reduction of scale expansion and upgrading of gross profit margin.