Tianchuang Fashion (603608) 2018 Annual Report Comments: Footwear Business Revenue Growth Rate
18 years of footwear business revenue increased by 2 every year.
3%, of which, the offline layout has been completed nationwide, the regional distribution has been maximized and balanced, and the direct channel structure has been optimized and adjusted. The number of channels has increased slightly while the quality of the same store has improved; the revenue of franchise channels has decreased due to inefficient store closures; online channel replacementXiaozi Technology enhances its digital operation capabilities and maintains steady growth.
Kid Technology consolidated the overall revenue growth rate to 18%.
The profit side was also affected by the consolidation to increase the overall growth rate to nearly 29%.
At present, the company’s total market value is 4.4 billion, corresponding to 19PE16X. The short-term estimate is reasonable. In the long run, the company is the second echelon after Belle.The synergies in the field 都市夜网 of digital operations are expected to further develop, maintaining a level of prudent recommendation.
The growth rate of footwear business has accelerated, and Kid Technology has consolidated its revenue and profit flexibility.
In 18 years, the company realized revenue, operating profit, and net profit attributable to the mother of 20 respectively.
5.2 billion, 2.
90 billion, 2.
4.2 billion, an increase of 18 each year.
87%, basically 0 benefits.
56 yuan; the dividend plan is a cash dividend of 2 for every 10 shares.
5 yuan (including tax).
Excluding consolidation factors, the company’s main business income will increase by 2.
3% to 17.
49 ppm, net profit fell by 21.
21% to 1.
In 4Q18, the company realized revenue, operating profit, and net profit attributable to the mother of 5, respectively.
5.8 billion, 0.
5.6 billion, an increase of 10 each year.
Footwear business income grows 2 every year.
3% to 17.
49 trillion, a significant increase over 2017.
1) Looking at different channels, and adding to the drag on the performance of offline business revenue; the synergy effect between e-commerce and Xiaozi Technology has appeared to achieve steady growth.
Offline: 18 years of offline channel revenue increased by 1.
41% to 14.
880,000 yuan, accounting for 85.
Among them, the revenue of directly-operated stores increased by 4 each year.
86% to 13.
00 million, the net number of stores increased by 91 to 1,377; franchise revenue decreased by 17.44% to 1.
With a net decrease of 8.8 billion, the number of stores decreased by 93 to 548.
Online: Leveraging the advantages of Xiaozi Technology in Internet digital marketing technology, it can accurately match users, develop potential users while cultivating existing users, increase repurchase rate, and increase sales revenue of e-commerce channels.
91% to 2.
5.5 billion yuan, accounting for 14.
2) Four major independent brands perform differently: Kisscat achieved revenue8.
40 billion (-4.
75%), with 44 net-closed stores to 1,007; ZsaZsaZsu grew faster and achieved revenue1.
5.3 billion (+23.
22%), with a net opening of 34 to 146 stores; tigrisso income4.
6.2 billion (+14.
09%), with a net opening of 9 to 427 stores; KissKitty revenue 1.
6.5 billion (-14.
81%), with 10 to 255 net-off stores; other agency brands achieved revenue1.
2.2 billion (+24.
60%), with a net opening of 9 to 90 stores.
The decrease in the expense ratio during the period was greater than the decrease in the gross profit margin, the increase in the provision for asset impairment losses, the increase in government subsidies, and the increase in net profit margin.
22pct to 11.
1) The kid technology business with a low gross profit margin also lowers the overall gross profit margin1.
74pct to 56.
Among them, the footwear business increased the overall gross profit margin by 0 while improving the efficiency of omni-channel retail operations, while strengthening cost control and improving the settlement rate of shopping malls.
68 points to 58.
64%, of which online gross margin increased by 0.
72 points to 57.
50%, offline gross margin increased by 0.
69pct to 58.
The gross profit margin of Kid Tech is 42.
2) The expense ratio during the period drops by 2.
03pct to 42.
05%, of which the changes in sales rate / management rate / financial expense rate were -1.
37pct / -0.
79pct / + 0.
3) Under the influence of factors such as the decrease in the expense ratio over the period of the gross profit margin, an increase in the provision for asset impairment losses of 14.62 million yuan, and an increase of 14.8 million yuan in government subsidies, the net profit increased by 1.
22pct to 11.93%, net profit attributable to mothers grows 28 per year.
87% to 2.
Turnover of inventories and receivables accelerated, and net operating cash flow increased. Overall growth indicators were relatively healthy.
18 years of low inventory size reached 4.
83 ppm, an increase of 15 per year.
56%, inventory turnover days reduced by 20 to 180 days.
The scale of accounts receivable and notes reached 3.
33 ppm, a decrease of 4 per year.
47%, the turnover days decreased from 3 days to 58 days.
Net operating cash flows increase by 0 each year.
34 ppm to 3.
04 million, overall is expected to be partially healthy operating indicators.
The rapid development of Xiaozi Technology, digital marketing helps upgrade the main business of footwear: Xiaozi Technology mainly distributes and programmatically promotes mobile applications in the army. It has independently developed the Yuzu Mobile SSP, DSP, DMP and other platforms and many mobile Internet marketing expertise; meanwhile,, Also established business partnerships with large mainstream Internet companies including Baidu, Tencent, Qihoo 360, and established a media pool covering head, long tail and other media.
In 2018, the kid’s technology revenue increased by 31% to 3 per year.
04 million U.S. dollars, with a net profit growth of 47% per year to 1 million U.S. dollars, fulfilling a gradual performance commitment.
The synergy effect of the cooperation between the two parties is revealed. The company overcomes the digital operation advantage of Xiaozi Technology, reconstructs user portraits, accurately matches users, improves repurchase rate and sales conversion rate, and promotes online business growth.
Profit forecast and investment rating.
As a leading domestic mid-to-high-end multi-brand women’s shoes group, the company has established a brand series that meets the needs of female customers of different ages and different consumption levels.
The nationwide layout has been completed offline, and the regional distribution is evenly balanced.
At present, the optimization and adjustment of the structure of direct sales channels has achieved significant results, the same store quality has improved, and inventory has decreased; franchising channels are still in the process of adjustment; online channels have replaced Xiaozi Technology to enhance digital operation capabilities, and revenue has maintained steady growth.
EPS are expected to be 0 in 19-21.
78 yuan, the current total market value of 4.4 billion, corresponding to 19PE16X, short-term estimates are reasonable.
In the medium and long term, the company is the second echelon after Belle. The team’s operational capabilities are at the leading level in the industry. While the footwear business is steadily growing, the synergy with Xiaozi Technology promotes continuous play and maintains “prudent recommendation”-One “.
Risk warning: The consumption environment continues to be sluggish, and multi-brand cultivation is less than expected.