From January to September, the income fell by 5.7%, the net profit reduced the loss.
From January to September in 17 years, the company achieved operating income of 4.443 billion yuan, down 5.69% from the same period last year. The net profit of-124 million yuan reduced the loss compared with-154 million yuan in the same period last year, deducting non-net profit-141 million yuan, and reducing the loss compared with-165 million yuan in the same period last year. The profit end is still at a loss, mainly due to the high expense rate.
Revenue split point of view, the current direct operation: the proportion of joining revenue is expected to be around 2:1, the revenue of the direct end is expected to grow, but the performance of the joining side is worse than that of the direct camp, and the decline in revenue is still a drag on the whole.
In terms of quarter-by-quarter, 17Q1~Q3 revenue is-12.89%, respectively, 6.04% and 5.49%, respectively, because the company is still in the period of business adjustment and its revenue fluctuates. The net profit per quarter is 2894 green 7369 pound-79.5 million yuan, the loss pressure is still large, and the operation needs to be improved.
Gross profit margin improved, expenses, inventory, receivables and cash flow remained under pressure
Gross profit margin improved. From January to September 17, gross profit margin rose 4.81PCT to 48.09% year-on-year, of which Q1~Q3 single-quarter gross profit margin was + 6/+5.53/+2.78PCT year-on-year, which was better than the year-on-year decline in 0.28PCT for the whole of 16 years.
The expense rate is high and relatively rigid. During the January-September period of 17 years, the expense rate rose to 47.19% from the same period last year, which is equivalent to the gross profit margin. Among them, the sales / management / financial expense rate is 41.64%, 4.43%, 1.12%, respectively, and + 5.83/-0.29/-0.80PCT, respectively.
Among other financial indicators, inventory, accounts receivable and operating cash flow are still under pressure. 1) the inventory scale at the end of September increased by 20.76% over the beginning of the year, and the inventory turnover rate has continued to decline over the past 17 years; 2) the 66.21% increase in accounts receivable at the end of September compared with the beginning of the year is due to increasing the proportion of credit sales and supporting franchisees. In the context of no improvement in franchise sales, it is expected to continue to be under pressure. 3) the net cash flow of business activities from January to September is-391 million.
In 2017, the net cash outflow from business activities was 88.71 million yuan, from positive to negative, and the pressure on cash flow in three quarters should be paid attention to.
Business adjustment continues to advance, short-term performance pressure remains
The company continues to promote brand innovation (Smith Barney's main brand is subdivided from a single leisure style into five styles), channel transformation (strengthening cooperation between shopping malls and other emerging channels) and supply chain optimization, but it is still in the period of adjustment and the pressure on the performance side is still there. The company expects 17-year full-year net profit of-3.62 million-207 million.
We believe that: 1) in the process of the company's business adjustment, the direct sales side has been initially effective, but the franchise side sales are still under pressure, and it is expected that the overall revenue is still under pressure. 2) from the perspective of operating effect, the gross profit margin has improved initially, but the expenses, inventory and receivables have not improved, and the cash flow has deteriorated, so we need to pay attention to the effect of subsequent adjustment. Taking into account the short-term corporate performance pressure is still large, downgrade 17-19 to-0.11 EPS 0.01max 0.04 yuan, to maintain the "neutral" rating.
Risk hint: consumption is weak and the progress of business adjustment in various channels is not as expected.