Taiping Bird Clothing Builds Solid Foundation With "Four Wheel Drive" Channel

According to the world clothing and shoe net, the income in the first three quarters of 2017 has increased by 9.7%, and the net profit has declined more than the net value of inventory. The 17Q3 growth rate is slightly weaker than that of the Mid Autumn Festival.

1) the income in the three quarter of 17 years increased 9.7% to 4 billion 310 million yuan compared with that of the previous year, and the net profit of the returned parent decreased 28.7% to 1.7 billion yuan in the same period.

2) 17Q3's single quarter income increased 4.5% to 1 billion 500 million yuan compared with the same period last year, and the net profit of the female parent decreased by 20.3% to 75 million 970 thousand yuan compared to the same period last year.

The total profit decreased by 1932 yuan from the three quarter of last year. On the one hand, the loss of assets impairment increased by 8 million 280 thousand yuan. On the other hand, the deferred income tax assets were 11 million 440 thousand yuan last year, and the income tax was 23 million 700 thousand yuan in the same period this year.

The provision for depreciation has already passed the turning point. There will be more room for future net interest rate increase and greater elasticity of performance.

1) from the report side, the company's 17 Q3 gross profit margin is stable at 56%, the selling fee rate is stable at 38%, and the management fee rate is stable at 9.1%.

Affected by impairment of assets, net interest rates dropped by 2.1pct to 3.8%.

2) from the company's equity incentive performance objectives, the company's equity incentive is unlocked for 17-19 years net profit of not less than 450 million /6.5 billion /8.5 billion yuan.

17Q4's strategic cooperation will help the company continue to exert power, and the impairment of stocks will give higher performance elasticity. The loss of asset impairment will be significantly reduced compared with the same period last year. The sale of Yichang's manufacturing revenue has nearly 4000 RMB 10000 yuan in value-added income, and the net interest rate level is still at a low level, with a higher space for improvement.

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Sales continued to improve, holiday factors affect short-term year-on-year data, "four wheel drive" channels continue to optimize and build a solid foundation for development.

1) the core ladies dress group is younger and adjusted to complete.

The brand is growing steadily.

Women's clothing has now completed the repositioning of the customer group to 95 after the young fashion group, the current remarkable results, the franchisee pick up rate from the previous low of 82% to 95% or more, 17Q3 revenue grew 4.5% to 1 billion 670 million yuan.

The main brand income of men's clothing increased by 6.3% to 14 billion yuan, up to a steady growth rate.

2) children's wear brand continues to grow at a high speed.

MiniPeace children's clothing 17Q3 revenue increased 42.4% to 4.5 billion yuan compared to the same period, children's clothing business has become a new growth point of the company's performance.

3) emerging brands inject continuous growth momentum into the company's performance.

The company's Lok Chai women's clothing increased by 11.3% to 620 million yuan over the same period. The initial brand AMAZING PEACE light luxury men's clothing and MATERIAL GIRL urban girls' clothing were in the fast growing period, and the total income increased by 62.3% to 1.1 billion yuan.

With the growth of new brands, they will contribute more to the growth of company performance.

4) the company's online sales growth is strong and has become a beautiful scenic spot.

Online sales grew by 44.5% to 9.7 billion yuan, or 23% of sales revenue.

The company is a staunch supporter of the new retail strategy, maintaining close cooperation with quality channel providers, and combining online and offline.

1) pay attention to the layout of emerging channels, and the proportion of electricity supplier + shopping center sales increased from 20% in 14 years to 44% in 17H1.

2) maintain close cooperation with quality channel providers.

In close cooperation with Wanda, 500 of the 1255 shopping center stores are located in Wanda Plaza.

9, he signed a strategic cooperation agreement with Ali to open the "double billion" plan and plan to achieve double billion sales on the 2020 year old line.

Close cooperation with quality channel providers will help companies enjoy the advantage of "head effect" and get support for deduction and traffic.

The company's whole category + multi brand strategy has achieved remarkable results, with scarcity. The channel structure has been driven by four wheels, and the online development is strong. It has worked closely with quality channel providers to enhance their performance and maintain the "overweight" rating.

In the early days, the profitability of the inventory was reduced due to inventory impairment. At present, the stock price depreciation provision has already passed the turning point, and the future performance is expected to rebound.

The company has a good strategic cooperative relationship with Wanda and Ali, and fully promotes equity incentive, and the chairman intends to implement the increase to show more confidence.

We maintain our original profit forecast. We expect the company's 17-19 EPS to 0.94/1.38/1.83 yuan, corresponding to 17-19 PE 31/21/16 times, and maintain the "overweight" rating.

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