Core ideas:
The company cuts into the cross-border e-commerce industry with a 65% stake in the chain of purchase price of 1.014 billion yuan in cash.
As of September 19, 17, the price chain has completed the industrial and commercial change registration, become the company's holding subsidiary, the company officially cut into the cross-border e-commerce industry. According to the performance commitment, the annual net profit of the price chain for 17-19 years is not less than 100 million yuan, 160 million yuan and 250 million yuan.
The cross-border e-commerce industry maintains a high bearing, and the price chain is expected to grow rapidly.
The domestic cross-border e-commerce industry as a whole shows a trend of rapid development. The price chain is based on brand e-commerce + e-commerce software + e-commerce community as the main cross-border export e-commerce: 1) through Amazon and other platforms to operate their own brand products, take the boutique route; 2) sell a variety of e-commerce marketing services and management software such as Amztracker and global trading assistants to global sellers 3) use vipon.com, Broadway online (blhpro.com) and offline communities to promote their cross-border e-commerce operation experience and full-process software services to global e-commerce sellers. The future performance of the price chain is expected to continue to grow rapidly, mainly because 1) the industry has broad space and high growth; 2) the price chain is currently in the stage of rapid development; 3) the private brand business has sufficient potential for the development of high-quality routes, popular styles and product combinations; 3) stable supplier relations and strong bargaining power; 4) cross-border e-commerce software services may become a new profit growth point.
The main business of zipper is sound, and the gross profit margin is expected to pick up in the second half of the year.
17H1 achieved revenue of 700 million yuan, an increase of 26% over the same period last year, and a net profit of 64.19 million yuan, an increase of 2% over the same period last year. The increase in revenue was mainly due to the pick-up in downstream clothing sales, and the lower profit growth was mainly due to a drop in gross profit margin of 4.8 pct to 30.35%. The rise in the price of raw materials led to an increase in costs. As the company optimizes its customer structure and digests the impact of raw material prices in the second half of the year, gross profit margin is expected to stabilize and pick up.
The results for 17-19 are expected to be 0.39 yuan per share, 0.58 yuan per share and 0.81 yuan per share, respectively.
The corresponding PE of 17ax in 18 years is 38x and 26x. Maintain the company's "cautiously overweight" rating.
Risk hint
Exchange rate fluctuation risk; clothing consumption decline risk; fierce competition risk of cross-border e-commerce services
