I. Overview of events
We investigated the daily broadcast fashion and communicated with the company executives about the company's operation and future development plans.
II. Analysis and judgment
Focus on creative design and actively lay out multi-brands
The company focuses on the creative design of middle and high-end fashion women's wear, and actively arranges multi-brands. The main brand broadcast: broadcast developed steadily, with revenue of 220 million yuan in the first quarter, an increase of 18% over the same period last year, CRZ revenue of 45.61 million yuan, an increase of 10%, and high-end women's wear brand PERSONAL POINT revenue of 7.41 million yuan, an increase of 34%. In addition, the company launched two new brands, MUCHELL and children's wear broadcute, which are aimed at new urban independent women last year, and plans to open about 20 stores each this year. The five brands can complement each other in product design style, brand positioning and target customers, so as to open up a broad market space for the company.
Develop direct marketing channels to expand new retail
The company actively expanded its direct business, opening a net 103 stores last year, including a net increase of 68 stores.
In the first quarter, the direct revenue was 133 million yuan, up 38% from the same period last year, and the proportion of total revenue increased by 7.5pct to 48.7% from the same period last year; distribution revenue was 93.31 million yuan, down 6% from the same period last year; joint sales revenue was 25.11 million yuan, up 26%; and e-commerce revenue was 21.66 million yuan, up 14%. Direct marketing has surpassed distribution and become the main sales channel. In addition, the company also launched a new online and offline integrated retail omni-channel store broadcastYLE, which is committed to meeting the omni-directional, all-weather and personalized needs of consumers from the three dimensions of emotion, goods and services, and is expected to further enhance customer stickiness.
Deep ploughing VMI Model and strengthening supply chain Management
The VMI model adopted by the company takes on-demand supply as the core, with small batch and multi-batch supply. Compared with the traditional high-volume and small-batch mode, VMI mode can better connect with terminal sales and arrange corresponding production according to real-time sales data, which is helpful for the company to control inventory, improve best-selling sales, alleviate the inventory pressure of dealers, and ensure the stability of the marketing network.
Third, profit forecast and investment suggestions
The company's main brand is growing steadily, actively expanding new brands, and its future performance is expected to continue to improve. It is estimated that the EPS of 2018-2020 will be 0.44 RMB 0.53 RMB, corresponding to the PE of 26-22-19, which will be covered for the first time and will be given a "highly recommended" rating.
IV. Risk hints
The macroeconomic downturn has led to a downturn in the consumption of middle and high-end women's clothing, and the development of new brands is not as expected.
