Semir Apparel (002563): Children’s Wear Maintains Stable 成都桑拿网 Development E-commerce Business Continues High Growth
Investment Highlights Event: The company achieved revenue of 157 in 2018.
2 ‰, +30 a year.
7%, net profit attributable to mother 16.
9 trillion, +48 a year.
8%, net profit after deduction is +30.
The gross profit margin increased, and the expense ratio rose slightly during the period: the company’s gross profit margin increased in 20184.
27pp to 39.
8%, mainly due to a 7.7% increase in gross profit margin for casual wear
67pp and a significant increase in revenue.
During the period, the expense ratio increased by 2.
19pp to 21.
The financial expense ratio rose by 0.
18pp to -0.
5%; sales expense ratio increased by 1.
69pp to 16.
4%, the increase in employee compensation, lease fees, advertising costs, transportation and 北京养生 miscellaneous expenses, service fees, etc., and the merger of the French KIDILIZ Group in the fourth quarter; management fee rate rose 0.
33pp to 5.
6% increase in employee compensation and merger of the French KIDILIZ Group in the fourth quarter.
Category: Casual clothing and children’s clothing are engaged in products.
The company has two major brands: adult casual apparel represented by the Semir brand and children’s apparel represented by the Barabara brand.
(1) Casual apparel: In 2018, the number of casual apparel stores was 3830, a net increase of 202, and a revenue of 67.
900 million, accounting for 43.
2%, +20 per year.
5%, gross margin is 37%.
(2) Children’s clothing: In 2018, the number of children’s clothing stores was 6,075, a net increase of 1280, and a revenue of 88.
200 million, accounting for 56.
1%, ten years +39.
6%, gross margin is 42.
2% (In 2018, the company wholly acquired the KIDILIZ Group, and the period-end figures were included in the company’s increase in the number of children’s clothing categories in this period and the period-end figures).
Channels: Layout of the first, second, third and fourth tier markets, covering a wide range of areas.
In 2018, the company has established 9,905 offline stores in provinces, autonomous regions and municipalities across the country, adding 2758 (directly operating 768, associate 280, joining 1710), a net increase of 1482 (directly operating 539, associate 280, joining 663).
Among them, there are 1,218 directly-operated stores, 280 associates, and 8407 franchise stores. At the same time, the company has established online sales channels on Taobao, Tmall, and VIP.com and other well-known domestic e-commerce platforms.
(1) Offline sales: In 2018, the company’s offline main business income was 115.
10,000 yuan, an increase of 30 in ten years.
Of which direct sales store income 20.
90,000 yuan, affiliate income of 93.
20,000 yuan, affiliate income 1.
(2) E-commerce: In 2018, the company’s e-commerce business continued to maintain a rapid development trend, achieving main business income41.
1 ppm, intensity 31.
Profit forecast and rating.
It is estimated that the company’s net profit attributable to mothers for 2019-2021 will be 20 respectively.
500 million, 24.
200 million and 28.
2 trillion, the corresponding EPS is 0.
75 yuan, 0.
88 yuan and 1.
03 yuan, corresponding to PE is 14/12/10 times.
Taking into account that the company does not have a leading premium, the company is given an estimate of 22 times in 2019, and the corresponding target price is 16.
5 yuan, maintain “Buy” rating.
Risk reminders: the risk of macroeconomic fluctuations; the risk of increased competition for children’s clothing; and the risk of traffic differentiation on online platforms.