The income increased by 35%, the net profit returned to the mother increased by 89%, the performance resumed growth, and the growth accelerated in one quarter.
From January to September 2017, the company achieved an income of 461 million yuan, an increase of 35.20%, a net profit of 162.776 billion yuan, an increase of 88.70%, a deduction of 66.838 billion yuan from non-net profit, and an increase of 7.08% EPS0.04 yuan. The growth rate of net profit is higher than that of income, benefiting from the decline in expense rate and the rapid growth of non-operating income, which is higher than the deduction of non-net profit, which is mainly due to the substantial increase in asset disposal gains and losses and government subsidies.
Quarter by quarter, 16Q1-17Q3 revenue growth rate is-16.16%,-13.38%,-16.18%,-1.87%, 12.96%, 26.18%, 59.92%, and home net profit growth rate is-26.18%, 221.20%, 95.02%,-36.22%, 13.39%, 168.33%, 4960.80%. After 17 years, the company's performance returned to growth, and the single-quarter growth rate gradually increased. Ruiling, a Hong Kong subsidiary of 17Q3, was involved in fur auction business to significantly increase its income growth. During this period, net profit increased significantly with a drop in 13.15PCT and a 997.39% increase in non-operating income.
After 2015, domestic and foreign consumption is in the doldrums, the fur business has entered the adjustment, and the enterprise has rebounded steadily in 2017.
Among them, the domestic clothing industry shows a warming trend, the recovery of high-end women's clothing represented by fur clothing is more obvious, the domestic income of the downstream dealers of the company resumes growth after inventory digestion, and the Russian economy picks up in exports. the company expanded to expand customers in Europe and the United States, Northeast Asia, fur clothing export revenue hit bottom. In addition, the company undertakes the industrial transfer in Beijing, increases the rental and sales income of merchants such as Wass Fur City, fur trading market and industrial park, and is involved in fur auction trade business, leading to a significant increase in other business income.
The gross profit margin fell sharply compared with the same period last year, and the expense rate fell even more.
From January to September in 17 years, the company's gross profit margin also decreased to 24.58%, mainly due to sales promotion and so on, which led to a decline in gross profit margin of fur OBM business and an increase in the proportion of income from low gross margin trade.
The gross profit margin of 16Q1-17Q3 is 45.74% (+ 10.97 PCT), 23.82% (- 0.83 PCT), 27.65% (+ 8.35PCT), 21.44% (- 12.32PCT), 38.33% (- 7.41PCT), 27.39% (+ 3.57PCT), 15.02% (- 12.63PCT). The significant increase in the proportion of income from fur trading in 17Q3 has led to a sharp decline in gross profit margin.
During the period from January to September in 17 years, the expense rate was reduced by 8.41PCT to 20.63%, of which the sales expense rate was reduced by 2.98PCT to 7.55%, the management expense rate was reduced by 3.73PCT to 9.04%, and the financial expense rate was reduced by 1.69PCT to 4.05%. The company has strengthened its cost control, and the rate of sales and management expenses has dropped significantly.
The integration of Beijing, Tianjin and Hebei helps the development of the company, and the project of Karmaworth town
2017.4.1 the CPC Central Committee and the State Council decided to establish Hebei Xiongan New area and plan the coordinated development of Beijing, Tianjin and Hebei. Tianjin and Hebei will undertake a number of high-quality enterprise projects with non-capital functions in Beijing, optimize and enhance the functions of the capital, and support the construction of Xiongan New area in Hebei Province. The company is located in Suning County, Hebei Province, less than 100 kilometers away from Xiongan New area, the geographical location is superior, and has Wass Fur City, fur trading center and other resources, can undertake industrial transfer in Beijing area.
The company invested in the e-commerce incubator project and built the first batch of characteristic towns in Hebei Province, "Wass Fur Town", to undertake the transfer of fur and related industries. On August 19, 2017.19, the company announced that it intends to invest 350 million yuan to build a fur town supporting and fur clothing processing expansion project, which is located on the east side of the worth Industrial Park and covers an area of 11000 square meters. It will be provided to fur and related industrial merchants through buyout and leasing business models to attract more popularity for the development of the town. On August 27, 2017, the company announced that it signed a cooperation agreement with Fazhijin to jointly build a special town of Voss for the investment, financing, development, investment and operation of the town project. Fazhijin is an enterprise that provides intellectual property rights to create effective demand solutions. It is currently building 12 intellectual property towns with different positions around the world, using big data, artificial intelligence and other technical means to tap effective demand and provide corresponding services. The cooperation between the two sides will help to integrate the resources of the global fur industry and promote the optimization and upgrading of the fur industry. It is estimated that the overall investment scale of the characteristic town will reach 30 billion yuan when it is completed.
The net profit is expected to increase by 10% to 30% in 2017, and the profit level is expected to stabilize and pick up.
The company expects the net profit of returning home to increase by 10% to 30% in 2017, mainly due to the recovery of revenue from the main fur industry and the increase in revenue from Beijing industrial transfer, fur market and Wass Industrial Park.
We believe that: 1) the main fur business of the company benefits from the recovery of consumption at home and abroad, and the income recovery growth trend is established. Under the background of the integrated development of Beijing, Tianjin and Hebei, the company has rich commercial real estate resources in projects such as Fur City, Fur Trading Center and the small town of Wess. it can undertake industrial transfer in Beijing, realize buyout or rental income, and drive other income to grow rapidly. 2) in terms of e-commerce layout, the company invests in Youshe technology, future moment, and invests 120 million yuan to build an e-commerce incubator and open its own fur women's clothing brand EGAKE Tmall flagship store to promote the online and offline integration of the fur industry chain. 3) 17 years of sales promotion and the increase in the proportion of fur trade revenue and other factors led to the decline of gross profit margin, it is expected that the proportion of auction revenue will stabilize, gross profit margin will stabilize, while the company will strengthen cost control, profitability is expected to stabilize and pick up. 4) 2016.11 Company completed its non-public offering, issuing a total of 37.08 million shares at an issue price of 16.18 yuan, of which 3337 million shares will be lifted on November 13, 2017.At present, the price increase is still upside down.
Due to the decline of the company's gross profit margin more than expected, we adjusted the forecast of EPS for 2017-19 to 0.05max. 0.12 yuan, long-term optimistic that the company will benefit from the integrated development of Beijing, Tianjin and Hebei, the integration of the fur industry chain, e-commerce extension layout is worth looking forward to. The current share price corresponds to 257 times PE in 17 years, with a smaller market capitalization (4.858 billion yuan) and a higher short-term valuation, downgraded to a "neutral" rating.
Risk tips: weak overseas demand, depressed domestic consumer market, losses in social e-commerce business, and so on.