Main points of the report
Event description
Leading shares (600630) announced the 2015 annual report, the main operating results are as follows: in 2015, the company achieved operating income of 4.263 billion yuan, an increase of 3.30% over the same period last year; net profit belonging to shareholders of listed companies was 81 million yuan, an increase of 27.51% over the same period last year. Basic earnings per share was 0.19 yuan per share, an increase of 26.67% over the same period last year. Profit distribution plan for 2015: based on the total share capital of 424.8616 million shares at the end of the year, it is proposed to pay a cash dividend of 0.58 yuan (including tax) to all shareholders for every 10 shares.
Event comment
Brand sales are improving, driving revenue recovery growth. The company's business is mainly brand sales and international trade, affected by factors such as order transfer, the revenue of the international trade business reached 2.227 billion yuan, which was basically the same as the same period last year; affected by the brand sales growth in the reporting period (+ 4%), the company achieved restorative revenue growth in 2015. The company's brand business is dominated by its own brand (accounting for 93% of brand revenue). The growth of authorized brand business scale is the main factor affecting brand sales growth. In 2015, the company obtained "three shots Walt Disney Company", "Navigar", "bagutta" and other brand licenses, realizing the authorized brand business growth rate as high as 1690%.
Increase offline channel innovation, set up e-commerce division to create three-dimensional marketing channels. Under the trend of flattening the overall channel layout of the industry, on the one hand, the company takes the initiative to reduce the level of agents, on the other hand, it adjusts the structure of offline shops, closes inefficient stores and increases the proportion of direct sales. In 2015, the company opened or closed a total of 243Universe 110 stores, joined stores 31Universe 62, net opened 102 stores. In 2015, the revenue of the company's direct stores reached 803 million yuan, an increase of 0.48% over the same period last year. Due to the factor of shop closure, the revenue of the franchise stores reached 200 million yuan, a decrease of 12.47% over the same period last year. Under the background of the increase in the share of online consumption, the company set up an e-commerce division to achieve complementary online and offline channels, and the proportion of online sales increased by 3 percentage points to 13% in 2015.
The linkage of domestic and foreign trade to promote the strategy of reducing cost and increasing efficiency. With the help of the advantage of foreign trade purchasing channel, the company imports cotton yarn by itself to meet the raw material demand of brand domestic trade business and reduce production cost. Affected by factors such as the increase in gross profit margin on fabric sales and the decline in the cost and price of raw materials such as cotton yarn, the company's comprehensive gross profit margin maintained an upward trend in 2015, rising 0.78 percentage points to 19.89% compared with the same period last year. In addition, the company in the Kangqiao manufacturing base to implement process optimization, natural gas boiler transformation to promote technical upgrading, expand profitability.
Explore a new mode of channel operation and reduce management costs. In order to further reduce channel costs and improve terminal sales efficiency, the company's knitting division launched the "out-of-port regional office + franchisee" channel model to reduce the level of agents and strengthen terminal control. the management expenses of some county-level cities have been effectively controlled. In 2015, the overall period expense rate of the company was 18.55%, a slight increase of 0.62% over the same period last year.
Fund the establishment of a fashion customization company to expand new growth points of business. The company plans to invest 15.3 million yuan with related parties to set up a fashion customization company with its own capital, accounting for 51% of the registered capital. With the help of the original supply chain and channel advantages, speed up the development of personalized customization business, the use of the company to expand the core business, give full play to intensive and synergy, and expand new growth points of business. Earnings per share are expected to be 0.21 yuan and 0.29 yuan from 2016 to 2017, corresponding to the current valuation of 101x and 73x, maintaining a "buy" rating.