Semir Clothing: Performance Is In Line With Expectations, Identification With Company'S Scale Expansion Path

In 1.2014 years and 1-9 months, the operating income was 5 billion 362 million yuan, which increased by 8.82%. The net profit attributable to shareholders of listed companies was 6.71 billion yuan, an increase of 21.67%; the net cash flow from operating activities was 480 million yuan, minus 42.55%; and EPS1.00 yuan was 21.95%.

Among them, the three quarter achieved operating income of 2 billion 430 million yuan, an increase of 10.34%; net profit attributable to shareholders of listed companies amounted to 3.28 billion yuan, an increase of 22.41%; the net cash flow generated by operating activities was 359 million yuan, an increase of 0.24%; EPS0.49 yuan, with an increase of 22.50%.

2014 year is expected to be listed.

The net profit margin of shareholders ranged from 9.02 to 1 billion 173 million yuan, with an increase of 0%-30%.

In 2012, the income and net profit fell sharply; 2 years from the 1 quarter of 13 years, with the early release of the children's clothing brand, the income growth rate began to improve significantly. Since the 2 quarter, the series of strategic initiatives such as integrating terminal stores, adjusting the internal structure and combing the supply chain has achieved remarkable results, and the net interest rate has continued to rise. 3) 14 months ago, the gross profit margin of the company rose by 0.71 percentage points to 36.56%. In the reporting period, the company continued to improve the structure and layout of the major core brand channels and continuously improve the terminal's retail capacity and store efficiency. 2. take the lead in strategic adjustment, and the effect of pformation is gradually emerging: 1) the external impact of the industry downturn, the impact of overseas brands and the diversion of online channels.

3. financial indicators accompany

The same direction of business development: 1) in the three quarter of 14 years, the stock grew 26.87% year on year (-11.07% in the same period last year), and the turnover rate slowed down to 2.51 times; 2) the growth of accounts receivable and accounts payable resumed with the increase of production and marketing scale, and the period increased by 38.05%, 23.63% and 3 respectively.

4. the company has the management team's steady, abundant capital, brand awareness and other resource endowments. Since the 2013 years, the company's scale expansion path is clear: in the Semir of adult leisure wear, the core of product upgrading is to enhance the control over the terminal stores. In addition, it will explore the brand acquisition to operate the brand collection. In the ballet barrack of children's clothing, relying on the strong position of the existing children's wear brand, expanding product category, buying foreign brands, and gradually expanding children's clothing business to the level of children's clothing industry.

It is expected that the investment, acquisition and resource integration of children's education, animation, film and video games and other related industries will continue in the future, and the company will become a comprehensive one-stop service platform for children.

5., we predict that the company will actively explore the brand integrated development mode in the future, and the current strategic adjustment will lay a good foundation for future scale expansion.

Through the way of M & A to expand the business space, we think it is in line with the trend of industrial development, and also think that the merger and acquisition of the company can produce synergy effect at the approximate rate.

It is estimated that the net profit attributable to the parent company is 2014-16, 10.97, 13.40 and 1 billion 663 million yuan respectively, increasing 21.58%, 22.23% and 24.03% respectively, corresponding to EPS, 1.64, 2 and 2.48 yuan respectively.

Taking into account the comparable company's 15 year PE interval at 22x-30x, giving the company's 2015 21xPE, corresponding to the stock price of 42.01 yuan, buying rating.

6. the main uncertainties are: the continuing downturn in the retail market, the sluggish demand for terminals, the risk of continuous upgrading of raw materials, rentals and manpower costs.