Roley Home Textiles: "Industry + Capital" To The Home Market Pformation

Investment points

Event: we went to the company recently to conduct in-depth exchanges with Mr. Tung on the company's current situation and future development plan.

"Industry + capital" to trillion

Transformation.

Company terminal channel

The intention to upgrade is obvious. The launch of Home is aimed at upgrading the brand store to one stop home, adding bathroom, bathing, floor mats, fragrances, slippers, home clothes, kitchen utensils, dining utensils, home furnishings, household appliances, lighting supplies, stationery, toys and other categories. The original 200-300 SKU will be upgraded to 800-900 SKU.

The company found that the launch of the home museum can significantly increase the passenger flow and increase sales performance (the number of shops in some ShoppingMall may be 20 or more than 200 a day, and now it can be increased to 10 times).

Before the traditional home textile products because of the higher unit price, consumers can not repeat the purchase, now the rate can be effectively improved.

After initial success, the company plans to build 150-200 new home furnishing stores in the second half of the year, of which 20-30% products are self produced, and the rest of the outlets are open to over 300 square meters, and hope to gradually reduce the sales of home textile products to about 30% in the future.

We believe that the launch of large family homes is conducive to the further release of sales elasticity, which is expected to exceed 10% in 16 years.

The acquisition of franchisees is a long-term process and capital operation continues to advance.

The company reported sales grew by 12% over the same period last year, and the impact of the 10 franchisees (dozens of shops) was about 10%.

The strategy of acquiring franchisees is a long-term process. After 10 successful ones, the successful experience will be continuously copied, and the financial impact will be the sales growth and gross profit margin further improved, but the cost rate will also increase correspondingly.

At present, the income of direct channel and direct battalion such as electricity supplier and company can be more than 40%, and the future expectation is more than 50%.

Electricity sales in the first half of the year increased by about 20%, while the rest were flat or slightly down.

In addition, the company's capital operation continued to advance. In August, it signed a cooperation agreement with Japan's infield Co., and the future channel of the infield in the country was handed over to the operation of Laplace.

Future Ltd will also cooperate with Jia Yu and Qianhai Indus to establish investment funds.

Maintain "buy" rating, 3-6 months target price of 19-23 yuan.

It is estimated that the company's core EPS0.63, 0.76 and 0.9 yuan will correspond to PE24, 20 and 17 times in 15-17 years.

Taking into account the company's lead

The pace of pformation and innovative and effective internal market mechanism can enjoy a certain valuation premium, giving 15-16 times 30 times PE, and 3-6 months target price of 19-23 yuan.