As a multi-brand fashion women's wear operation group, the marketing network has covered 30 regions across the country and has 886 offline stores. Among them, the main brand "broadcast: broadcast" has 677 stores, accounting for 80.5% of the revenue, but because of its strong differentiated tonal positioning, it has a comprehensive share of 0.37% in the women's clothing market, ranking 44th. In terms of profitability, because the company's channel is mainly distribution operation, profitability is in the middle of the listed women's wear companies, but because of the high efficiency of the supply chain and the strong ability of fine management, the inventory turnover and accounts receivable turnover rank at the top. In the future, the company will increase the proportion of direct stores, turn some distribution stores into joint stores, a series of channel reform measures will enhance the company's control over terminal channels, growth and profitability are expected to improve.
The main brand "broadcast" is well known in the market, but the differential niche market positioning leads to the limitation of single brand growth ability. Nissan Fashion, as a multi-brand middle and high-end fashion women's wear group integrating design, production and sales, is mainly engaged in "broadcast: broadcast", "PERSONAL POINT" and "CRZ", which have different design styles and different brand positioning. Among them, the main brand has an operating history of more than 10 years, stable performance, revenue accounted for 80.5%, but due to strong differentiation, the comprehensive market share of women's clothing is 0.37%, ranking 44th.
Channel model reform, with the help of VMI management system to improve supply chain efficiency. The company adopts omni-channel mode of operation, in which offline distribution is mainly adopted (stores account for 70.5%), supplemented by direct marketing and joint sales. In recent years, the company is gradually increasing the proportion of the number of direct stores, and trying to co-sell the way to strengthen the control of the terminal channel, and with the help of VMI system to improve the efficiency of the supply chain, improve the sales rate, reduce inventory pressure. The improvement of its own business capacity superimposed 2016Q4 began the overall recovery of the middle and high-end women's wear market, driving the company's performance in 2017 Q1 obvious recovery.
The use of investment funds to strengthen direct marketing, research and development and information system construction. The proposed public offering of 60 million shares will be used for the "Marketing Network Construction Project" (23900 yuan for the construction of 209 directly operated stores), the "R & D and Design Center Project" (84 million yuan) and the "Information system upgrade Project" (57 million yuan).
Profit forecast and valuation: as a well-known brand of domestic fashion women's wear, the company has excellent overall development texture and sound business performance. In the later stage, it will achieve sustained and rapid development by speeding up the opening speed of direct stores in first-and second-tier cities, improving the control of channel terminals, and improving the level of supply chain management. It is estimated that the EPS in 17-19 years is 0.34,0.40 and 0.48 yuan per share respectively. Considering the existence of a certain valuation premium for new shares, 17-year 30XPE is given as the center, and the reasonable price center in the secondary market is 10.20 yuan.
Risk tips: 1) the acceleration of the construction of direct stores, resulting in an increase in costs; 2) the risk of fluctuation of the company's main brand style after the departure of the original design director; 3) the progress of multi-brand system construction and joint venture is slower than expected.
