Jiu Muwang (601566) Annual Report Commentary Report: Investment Income Contributes Profit Growth High Dividend Shows Steady Value
Revenue in 2018 was 27.
300 million (+6.
6%), net profit attributable to mother 5.
34 billion (+ 8%), net of non-net profit3.
600 million (-18%), EPS is 0.
93 yuan, 2018Q4 realized revenue 8.
100 million (+3.
9%), net profit attributable to mother 1.
84 billion (+ 22%).
1Q1 company revenue was 8 billion (+7.
2%), net profit attributable to mother 2.
700 million (+ 40%), deducting non-net profit1.
5.3 billion (-17%), the non-net profit deducted at the beginning of 18 and the first quarter of 19 was slightly lower than expected.
Single-quarter revenue for the fourth quarter of 20188.
1 billion (+3.
9%), deducting non-net profit of 38.78 million yuan (-64.
The decrease in the previously deducted non-net profit was mainly due to the impact of ZIOZIA’s consolidation and inventory impairment.
A 10 yuan dividend is paid for every 10 shares, with a dividend payout ratio of 108%, corresponding to the current price dividend rate of 7.
1%, dividend yield in line with expectations, dividends continue to be considerable.
Sub-brands: The main brands are basically flat, and FUN maintains high growth.
Revenue of Jiumuwang Brand in 201823.
800 million (+0.
21%), accounting for more than 90% of the company’s annual revenue, the overall flat.
FUN brand realized revenue 2.
100 million (+61.
5%), the sustained and rapid growth is due to the company’s broadening of sales channels, full integration of the supply chain, discovery of product research and development and brand promotion.
J1 / NASTYPALM / VIGANO as the company’s brand expansion, positioning can be fashionable and young, biased towards high-end, and future growth is expected.
2019Q1 Jiumuwang brand revenue6.
7.4 billion (+0.
19%), FUN revenue was 61.61 million yuan (+10.
8%), ZIOZIA revenue was 29.18 million yuan, and NASTYPALM / VIGANO maintained high growth under a low base.
Sub-channels: Net closures will be completed in 2018, and net sales are expected 南京桑拿网 to remain in 2019.
As of the 2018/2019 Q1 report, there were a total of 2774 offline stores / 2760 offline stores (directly operated 901/906, joined 1873/1854); the company optimized offline channels by closing poorly performing stores, 2018 netnessOpening 37 stores and 14 net closing stores in 19Q1, the stores are in the process of dynamic adjustment, it is expected that gradually will still be a net opening.
The annual franchise channel revenue accounted for 51% in 2018.
5%, direct sales accounted for 34.
The company’s overall offline revenue is relatively high, accounting for 88% of total revenue.
2 pct), online revenue accounted for 11.
23pct), online share can still improve space.
By product: the proportion of pants decreased and the proportion of jackets and T-shirts increased.
Men’s 北京夜网 trousers accounted for 41 of the main business revenue in 2018.
15% is still the company’s core product, and jacket / T-shirt revenue increased from the same period last year.
3% / 40.
2%, mainly due to the gradual increase in FUN brand business reported. The improvement of non-pants represents a slight improvement in products.
Profitability: In 2018, the gross profit margin gradually decreased to 0.
80pct to 56.
61%, gross profit margin remained basically stable; 19Q1 gross profit margin decreased by 1.
56pct to 56.
The annual sales expense ratio increased by 0 in 2018.
70pct to 27.
76%, mainly for brand promotion; increase in management expense ratio1.
13pct to 8.
24%, the financial expense ratio drops by 0 every year.
38pct to -0.
05%; R & D expense rate increased by 0 in ten years.
35pct to 1.
Net interest margin increased overall by 0.
08pct to 19.
27%, overall profitability is good.
Inventory turnover days 234.
5 days, reduced by 8.
Earnings forecast: Taking into account the impact of Caitong’s reduction of holdings and the expense cycle, the EPS in 2019 is raised to 1.
01 yuan (was 0.
(RMB 94 yuan) to reduce EPS in 2020 to 0.
86 yuan (was 1).
06 yuan), EPS is predicted to be 0 in 2021.
Considering that the company has a considerable dividend ratio (108%) and a dividend yield.
Excellent asset quality, maintaining a high dividend payout ratio, stable main business operations, and maintaining a “Buy” rating.
Risk warnings: The recovery of the main brand is less than expected, weak consumption, inventory risks, etc.