Zhou Dasheng (002867): High expansion and product optimization boost high performance

Zhou Dasheng (002867): High expansion and product optimization boost high performance

Highlights of the report The event describes the company’s annual report: 2018 realized operating income of 48.

70 ppm, an 苏州夜网论坛 increase of 27 in ten years.

97%, attributable net profit 8.

0.6 million yuan, an increase of 36 in ten years.

15%, attributable non-net profit 7.

52 ppm, an increase of 32 in ten years.

53%, earnings per share is 1.

68 yuan / share, at the same time it is planned to distribute a cash dividend of 6 to all shareholders for every 10 shares.

50 yuan (including tax), the capital reserve will be transferred to all shareholders for every 10 shares of 5 shares.

Incident review: High-speed exhibition stores and excellent single store operation benefits, combined with product structure optimization, achieve high-performance growth.

The company achieved operating income of 48 in 2018.

70 ppm, an increase of 27 in ten years.

97%, of which Q1 to Q4 in 2018 exceeded 16.

91%, 36.

26%, 36.

34% and 21.

53%. Behind the high-income growth rate, the merged company maintained a fast pace of opening stores. It opened 872 new stores and a net increase of 651 (625 franchised stores and 26 self-operated stores).The average single store revenue of self-operated stores increased by 11.

64%, the average single store revenue of franchised stores increased by 11.

15%, indicating potential endogenous growth capacity.

At the same time, the company continued to optimize its product structure, and the average single-store M & A category sales of franchised stores increased.

20%, combined with the development of supply chain financial and management services business with high gross profit margin, the comprehensive gross profit margin of the comprehensive management company increased and increased1.

62 average values to 34%, the company’s management efficiency continued to optimize under the rapid expansion of the store rhythm, and the report company’s sales expense ratio fell by 1.

05 number, the management expense ratio is maximized to 0.

6 average values. If the impact of fair incentive costs is excluded and R & D costs are considered, the overall management expense ratio will decrease by 0.

04 per share, and due to the increase in bank borrowings and gold leases and increased interest rate payments, the increase in financial expense ratio increased by 0.

71 averages.

Taken together, the company’s operating profit in 2018 increased by 34 each year.

31%, of which the operating profit in the fourth quarter of 2018 increased by 36.

73%, bright growth performance.

Continue to strengthen brand building and category structure optimization to lay a solid foundation for long-term stable development.

The company will adhere to the core of the “love” and “beauty” brand culture, adopt a comprehensive and three-dimensional brand marketing strategy to strengthen brand publicity, and after the R & D center is completed, increase the new R & D design capabilities and increase the proportion of original products.Committed to improving the added value and profitability of the company’s products.

Investment suggestion: We believe that the company is in the phase of accelerated expansion of store openings and optimized product structure. Revenue and performance will help maintain rapid growth.

At the same time, the introduction of equity incentives urged the company to continue to improve its operating efficiency.

We expect the company’s EPS to be 2 in 2019-2021.

07, 2.

49 and 2.

86 yuan / share, the current corresponding PE is expected to be 16, 14, and 12 times. Maintain “Buy” rating.

Risk Warning: 1. Affected by the economy, terminal consumption has further expanded and declined; 2.

The company’s progress in expanding its stores is relatively slow.

Note: Operating profit = operating profit-other income-net investment income-asset disposal income-net income from changes in fair value