Biyin Lefen (002832): Q3’s performance exceeded expectations, and the high-quality track leader in the high-speed track again welcomed a strong year

Biyin Lefen (002832): Q3’s performance exceeded expectations, and the high-quality track leader in the high-speed track again welcomed a strong year

The event company announced the first three quarters of 2019 performance forecast. It is expected that the net profit attributable to the parent company will increase by 55% -65% to 1 in Q3.


380,000 yuan, the first three quarters net profit attributable to mother increased by 47.

28% -51.

33% to 3.


1.2 billion.

Brief comment on Q3 profit before tax increased by 38% +, the performance growth rate is better than the first two quarters of the company Q1, Q2 net profit 杭州桑拿 attributable to the mother increased by 52.

91%, 17.

32%, Q3 again exceeded expectations, single-quarter performance growth faster than the previous two quarters, a significant increase from Q2 (Q2 increased equity incentive costs of 13.33 million yuan).

Since this year, the preferential tax rate for emerging enterprises has improved the flexibility of their performance. According to the preferential tax rate of 15%, the total profit in Q3 was 1.

5.2 billion-1.

62 trillion, with an increase of 38.

6% -47.

5%, and H1 profit maximization growth rate is 19.

7%, Q3 profit continued to improve after excluding tax factors.

The performance of the company is significantly better than the overall clothing. The extension of the endogenous endogenous force has expanded rapidly since the opening of the store since last year + the same store remains strong is the main driving force to maintain rapid growth this year. In the first half of the year, the company opened 34 to 798 stores (directly operated 385 stores)., Joined 413), the number of stores increased by 16.

5%, the pace of store opening is maintained. It can be seen that with the continuous improvement of brand power and product quality, the market has gradually opened. It is expected that the number of net openings in the second half of the year will be more than that in the first half.Family.

While accelerating the expansion of the extension, the company has begun to refine its offline stores in the past two years. It has opened centralized boutiques and large-scale experience stores. With the optimization of new store locations and areas, the stores are gradually becoming more intelligent, information-based, and fully connected to high-end channels., Bringing the same store continued strong, double-digit growth in the same store in multiple quarters.

The company disclosed that the growth in Q3 performance was mainly due to the continued growth in sales performance. Considering that the profit exceeded expectations, we expect that Q3 revenue will still grow by about 25%, and the same store will maintain double digits.

Direct sales promotion + strengthening of stocking support sales, smooth inventory digestion channels at the end of H1.

9.8 billion, an increase of 34.

3%, mainly due to the increase in the proportion of direct sales + increased stocking under the expansion of sales (direct stocking and gradual increase in franchisees) + new brand Venice stocking increased.

At the end of 2018, the company’s inventory accounted for 76 within one year.

61%, 18 in 1-2 years.

88%, the overall age of the warehouse, the company’s sales are good, and the aging period of goods is shortened. The outlets such as the Olle store digest the out-of-season channels smoothly, and the pressure for impairment is controllable.

In the first half of the year, the net cash inflow from operating activities increased by 121.

2% to 0.

9.1 billion yuan.

Investment suggestion: Sports and fashion are highly prosperous, the company has a variety of sports, fashion, business and other scenarios, customers are mainly middle-aged families with greater spending power, maintaining excellent product quality and strong brand stickiness.

In the past two years, stable store openings and same-store sales have led to a healthy growth in sales. The proportion of directly-operated stores has increased the gross profit margin, and the performance has continued to be flexible.

In the future, the company will sink further to the fast-growing third- and fourth-tier cities, with more and more diversified brands to create space.

The landing of Vice-branded Venice has accelerated this year, and it is expected that this year’s extension of stores will maintain 10% +.

We expect net profit attributable to mothers for 2019-20204.

1.3 billion, 5.

2.6 billion, with EPS of 1.

34 yuan / share, 1.
70 yuan / share, corresponding to the current PE of 20 times, 16 times, the company was selected into the FTSE Russell Index, S & P Dow Jones Emerging Markets Index, market attention increased, subdivided high-quality track leading high-end, maintain “buy”Rating.
Risk factors: High-end market demand is affected by the slowdown of the macro economy; new brands still need to be cultivated, and early-stage expenditures have an impact on performance.