Tianchuang Fashion (603608): The main business adjusts and gradually recovers. Overweight intelligent manufacturing promotes the steady improvement of performance.
Investment points: The company’s performance has grown steadily, and net profit attributable to mothers increased by 29% in 18 years, slightly lower than expected.
1) The company’s performance has maintained steady growth.
18 years to achieve operating income of 20.
50,000 yuan, an increase of 18 in ten years.
4%; net profit attributable to mother 2.
4 ppm, an increase of 28 in ten years.
9%, deducting non-net profit is 2.
100 million US dollars, an annual increase of 27%, mainly due to the consolidation of the kid technology.
2) The net profit of the main business of shoes and clothing has increased.
If we reduce the impact of the kid’s technology consolidation, the main business income of shoes and clothing in 18 years will increase by 2.
3% to 17.
4 trillion, the net profit attributable to mother decreased by 22% to 1 in ten years.
4 trillion, mainly due to the payment of 8.87 million yuan in idle land costs in 18 years, and increased marketing and publicity efforts, resulting in increased costs.
3) The growth rate in the fourth quarter was slightly attached.
4Q18 achieved operating income 5.
800 million, an increase of 10 in ten years.
4%, net profit attributable to mothers was 55.70 million yuan, an annual increase of 15%.
4) The dividend ratio is relatively stable.
The company pays dividends for every 10 shares.
5 yuan, the dividend ratio reaches 43%, and the yield is about 2.
Gross profit margin decreased slightly, expenses were well controlled during the period, net interest margin steadily increased, and asset quality was healthy.
1) Gross profit margin for 18 years decreased by 1 compared with the same period last year.
7pct to 56%, mainly due to the consolidation of kiddie technology.
Selling expense ratio decreased by 1.
4 points to 28.
6%, the management expense ratio (including research and development expenses) decreased by 0.
8 points to 13.
5%, leading to a 1% increase in net interest rate.
2pct to 11.
2) The accounts receivable turnover days in 18 years decreased by 3 days to 58 days compared with the same period last year; the inventory turnover days decreased by 21 days to 180 days compared with the same period last year.
At the same time, operating cash flow increased by 33.65 million yuan to 3 trillion over the same period of the previous year, and asset quality was relatively healthy.
Adhere to the multi-brand strategy and build a complementary brand matrix.
1) The main brand KISSCAT continues to adjust.
In 18 years KISSCAT achieved income 8.
4 ‰, a decline of 4 per year.
8%.In 18 years, there were 44 to 1,007 stores with net clearance (660 directly operated + 347 joined), and the single store revenue was basically the same as the same period last year.
2) The mid-to-high-end brands ZsaZsaZsu and tigrisso continue to grow rapidly.
In 18 years ZsaZsaZsu realized income1.
500 million, an annual increase of 23%.
In 18 years, there was a net increase of 34 stores to 146 (directly operated 137 + joined 9).
18 years tigrisso realized income4.
600 million, an increase of 14% in ten years.
In 2018, there was a net increase of 9 stores to 427 (directly operated 326 + joined 101), the same store growth rate is expected to exceed 10%.
3) The KissKitty positioning has been adjusted.
In 18 years KissKitty achieved income1.
700 million, a year-on-year decrease of 15%.
In 18 years, there were 10 to 255 stores closed (directly operated 190 + joined 65), the same store growth rate has improved.
4) Other brands have grown steadily.
Total revenue of other brands in 18 years1.
2 ‰, an increase of 25% in ten years.
In 18 years, there was a net increase of 9 to 90 stores (64 directly-managed stores + 26 franchisees), and the same store growth rate is expected to exceed 10%.
Offline stores continued to adjust, and e-commerce channels recovered in the fourth quarter.
1) The offline channel structure has been continuously optimized, and the number of stores in 19 years is expected to achieve a net increase.
The total number of company stores in 1918 was 1925, basically the same as the same period last year.
Among them, there were 1,377 directly-operated stores, a net increase of 91, accounting for 72%; 548 franchised stores, with a net clearance of 93.
2) Actively adjusted online, showing a recovery trend.
18 years of online income2.
5 trillion, a year-on-year growth of 8%, of which e-commerce revenue in the fourth quarter was about 88.12 million yuan, an increase of 7.
2%, an improvement from the negative growth in the third quarter, it is expected that e-commerce is expected to improve quarter by quarter in 19 years.
Xiaozi Technology continued to exceed expectations, and the main business of footwear and clothing increased smart manufacturing to create a flexible supply chain.
1) Kid Technology has continuously exceeded its performance commitments.
In 18 years, the kid’s technology realized revenue of 300 million US dollars, an increase of 31% year-on-year; realized net profit of 1 trillion attributable to mothers, an increase of 47%, the second consecutive year in excess of performance performance commitments (18 years commitment to achieve net profit of 84.5 million yuan).
2) Issue of 600 million convertible bonds and increase smart manufacturing.
The company plans to issue US $ 600 million convertible bonds to build an intelligent manufacturing base and 4 automated intelligent production lines and 4 flexible production lines to enhance the level of automation, digitalization, and intelligent production supply chain.
The company is a leading company in the women’s shoes industry. The offline channel continues to optimize the structure, and the online gradually resumes growth. It promotes continued growth in performance and maintains the “overweight” level.
The company’s offline stores are adjusted in place. It is expected that the number of stores in 19 years will be expected to increase. The online experience will start to recover in the fourth quarter, and it will be better quarter by quarter in 19 years.
Considering that the number of the company’s stores slightly exceeded expectations, it lowered its profit forecast for 19-20 years and increased its profit forecast for 21 years. It is expected that the net profit attributable to the mother in 19-21 will be 2.
700 million (was 3).
8 ppm), the 北京夜网 corresponding EPS is 0.
85 yuan, PE is 16/14/12 times, maintaining the “overweight” level.