Main points of investment:
The company is a well-known clothing brand operation and management group, based on the field of middle and high-end fashion women's wear. 1) three independent brands + invest in designer brands to create multi-level brand groups. The company has three major women's clothing brands with different positioning: broadcast, CRZ and PERSONAL POINT. It also participates in investing in coexistence International, responsible for the designer brand "Taoray Wang".
Operation and management of. 2) the company has stable operation and stable performance. In 14-16, the income remained stable at about 900 million yuan, and the net profit was about 80 million yuan. In the future, with the completion of the omni-channel sales network, the improvement of the information system, and the gradual arrival of the harvest time of the new brand, the company's performance is expected to improve. 3) centralized control of the company, stable team, and attach importance to building a team of designers. The actual control of the company is Wang Weidong and qu Jiangting, who directly + indirectly hold 64.45% of the shares after the company is issued, and the equity is concentrated and stable. The company team is young, attaches importance to the trend design, the staff designer occupies the relatively large, the design team altogether 166 people.
Brand end: multi-brands in the market positioning is different, each has its own emphasis, building a multi-level brand market, covering more consumer groups. The company's current private brands include broadcast: broadcast, PERSONAL POINT and CRZ. 1) broadcast: broadcast: the core brand of the company, targeting intellectual women between the ages of 25 and 35, with revenue of 700 million yuan in 2016, accounting for 80% of the total revenue. 2) CRZ: emerging strong brands, consumer groups around the age of 15-25, their income has grown by 15% or 13% in the past two years, and now accounts for 17% of total income. 3) PERSONAL POINT: the brand is still in development, targeting fashionable women between the ages of 25 and 35, with revenue of 24 million in 2016. 4) the company has also invested in coexistence International and is responsible for the operation and management of the designer brand "Taoray Wang", which provides exclusive services to senior professional women for global leading women, and will be officially launched in 2017.
Channel end: the sales channel is mainly offline, supplemented by online, and closely combines online and offline. 1) offline: the proportion of direct operation is increasing, and the brand control is strengthened. In 14-16 years, the proportion of the company's direct revenue has been increasing, from 30.13% to 34.54%.
And the company slowed down the pace of store opening, mainly to optimize the existing store structure, to the end of 16 years, a total of 886 terminal stores, including 179 direct stores, 82 joint stores and 625 dealerships. 2) online: the company closely follows the trend of online and offline integration, and the proportion of e-commerce revenue is stable. The company's e-commerce channels, including Tmall, JD.com, Vipshop Holdings Limited, No.1 store and other mainstream platforms, account for about 10% of the total revenue. 3) active information layout, improve the efficiency of the supply chain, and develop the omni-channel strategic layout. The company continues to invest in the software and hardware of the information system, with a cumulative investment of 43.05 million yuan. The company has completely connected the information of orders, goods inventory, logistics and distribution in both online and offline channels, forming a more perfect sales network that integrates the experience advantages of offline stores and the convenient advantages of online transactions, to improve the operational efficiency of the company's overall supply chain.
The company is a clothing brand operation and management group for middle and high-end women's wear, with steady development of main brands, active cultivation of emerging independent brands and layout designer brands, and is expected to create a multi-level coverage and distinctive brand ecosystem in the future. In the future, relying on the company's further development in channel layout, brand development and category increase, and cooperating with information operation to continuously improve the overall operational efficiency of the company, the company's rapid development is expected. It is estimated that the fully diluted EPS of the company from 2017 to 2019 will be 0.450.52 pound 0.59 yuan respectively. We give the company a reasonable valuation range of 30-35 times in 2017, with a reasonable price range of 13.5-15.8 yuan for the corresponding company.
Risk reveals: macro-economy, industry competition, inventory management and inventory price decline, single brand, channel expansion.
Special note: the IPO pricing predicted in this report is not the price performance on the first day of listing, but a reasonable price range when the existing market environment remains basically unchanged.
