In 15 years, the income decreased by 1.62%, and the net profit gained from the disposal of stores increased by 148%. The decline in revenue expanded by 16Q1.
The 15-year revenue was 1.013 billion yuan, down 1.62% from the same period last year, deducting non-net profit of-58.6943 million yuan, 16.14% lower than the same period last year, and the loss was enlarged. The net profit returned to the mother was 22.5861 million yuan, an increase of 148.48% and 0.07 yuan compared with the same period last year. The decrease in deducting non-net profit over income was mainly due to the decrease in gross profit margin and the increase in bad debt loss by 42.98 million yuan. the higher growth rate of net profit mainly contributed 103 million yuan to the sale of non-current assets in Beijing (a large increase over the previous year of 26400 yuan).
15Q1-Q4 revenue increased by 25.44%,-9.22%,-5.67% and-13.57% respectively, and net profit from home increased by 5.80%, 102.07%, 65.16% and 270.14% respectively compared with the same period last year. 16Q1 revenue fell 28.64%, the decline expanded, and the net profit returned to the home increased by 9.47%, mainly due to the reduction of asset impairment losses caused by the reduction in provision for bad debts (- 1.81 million yuan).
58 stores have been closed in the past 15 years, and the proportion of export business has increased.
(1) at the end of 15 years, the number of channels of the company was 556, of which 49 were directly operated and 507 joined, with a net decrease of 58 stores. The company closed stores whose performance was not up to standard, and the reduction in the number of stores was mainly due to the adjustment of direct marketing channels (including 57, 53.8%, and 1, 0.2%, respectively). From the performance of single store, the growth of same store and the area of single store are basically the same.
(2) in terms of products, the main brand of Sinur has sold about 200 million and more than 500 stores in 15 years; the Planio brand has sold about 50 million and nearly 50 stores (it will continue to open stores); and the proportion of sales of the Melton brand is very small and there is no separate store. Sales of the group customization business are estimated at 290 million, accounting for about 29 per cent of total revenue, with gross profit margins rising by 6 PCT, while e-commerce sales are small, accounting for less than 1 per cent.
(3) in terms of weight price, sales increased by 5.07% compared with the same period last year, and the launch price decreased by 6.34%.
(4) from a regional point of view, the 15-year income growth mainly comes from exports: export income is 402 million yuan, up 18.56% over the same period last year, domestic sales income is 604 million yuan, down 11.60% from last year, and the proportion of exports has increased from 32.93% to 39.69%; 15-year export gross profit margin has increased by 10%, up 0.10PCT, and domestic sales gross profit margin has increased by 39.53%, up 1.64PCT.
Lower gross profit margin, lower cost rate, and continuous improvement in inventory
Gross profit margin: the 15-year gross profit margin was 27.64%, down 1.24PCT from the same period last year, mainly due to the increase in sales promotion, the increase in labor costs and the decline in the price of group customized orders; the gross profit margin of leisure suit and trousers decreased by 0.52% and 3.85 PCTX 15Q1-16Q1 gross profit margin of 28.75% (- 7.20PCT), 33.49% (+ 6.56PCT), 19.09% (- 5.75PCT), 29.87% (+ 1.48PCT), 28.09% (- 0.66PCT) respectively.
Expense rate: during the 15-year period, the expense rate decreased by 4.65PCT to 27.75% compared with the same period last year. Among them, the sales expense rate decreased to 19.61% from the same period last year, mainly due to the company's energy saving, consumption reduction and cost reduction. The rate of administrative expenses increased to 7.30% by 1.18PCT. The financial expense rate decreased from 0.79PCT to 0.83%, mainly due to higher exchange gains caused by exchange rate changes.
The 15Q1-15Q4 sales expense rates are 19.13% (- 5.34PCT), 22.47% (- 4.30PCT), 15.89% (- 6.07PCT) and 21.45% (- 4.07CPT) respectively, and the management expense rates are 5.36% (- 0.75PCT), 7.95% (+ 1.25PCT), 5.65% (+ 0.45PCT) and 10.61% (+ 4.10PCT), respectively. Financial expense rates 1.09 per cent (+ 0.06PCT), 1.72 per cent (- 1.11PCT),-0.88 per cent (- 2.44PCT) and 1.47 per cent (+ 0.25PCT).
The reduction of 16Q1 sales expense rate to 15.77% is due to the optimization of marketing channels to reduce the impact of expenses; the management expense rate increased by 2.38PCT to 7.74%, and the financial expense rate increased by 0.28PCT to 1.37%.
Other financial indicators: 1) inventory decreased by 11.95% to 311 million compared with the beginning of the year, mainly due to a 20.78% reduction in inventory, with an inventory turnover of 2.20%; at present, the company's out-of-season inventory accounts for 9%, which will continue to decrease in the future. 16Q1 inventories are down 10.79% to 278 million from the start of the year.
2) accounts receivable decreased by 11.49% to 441 million compared with the beginning of the year; 16Q1 accounts receivable increased by 2.09% to 450 million yuan compared with the beginning of the year.
3) the impairment loss of assets increased by 219.15% to 62.59 million yuan over the same period last year, of which the provision for bad debts increased by 254.61% to 60.12 million over the same period last year, mainly due to the provision for bad debts of 31.877 million yuan for the accounts receivable of Yantai Desheng Real Estate Co., Ltd.; the impairment loss of 16Q1 assets decreased by 1565.44% to-1.93 million compared with the same period last year, mainly due to the decrease in provision for bad debts.
4) the non-operating income increased by 1931.45% to 109 million yuan, mainly due to the income from the sale of shops in Beijing, while the non-operating income of 16Q1 increased by 25.92% to 200200 yuan.
5) the net operating cash inflow increased by 400.79% to 153 million yuan compared with the same period last year, mainly due to the increase in sales payments and the decrease in cash outflow from operating activities. 16Q1's net operating cash flow increased by 185.44% to 94.1254 million yuan over the same period, mainly due to the company's receipt of major asset restructuring share subscription deposits and payment of cash outflows from operating activities compared with the same period last year.
The acquisition of Xinghe Interconnection was planned in September 2015 and terminated in April 2016, and M & An is still expected.
Over the past 15 years, the company has suspended trading for many times to plan for restructuring or related matters, but failed to do so. 15.4.29 suspension planning major asset restructuring, 15.6.8 termination of resumption of trading; 15.7.8 suspension of planning to sell some assets suspension, 7.14 termination of resumption of trading; 15.9.7 planned acquisition of Xinghe Interconnection suspension, 16.4.23 announcement terminated due to failure of both parties to agree on the company's future development strategy. In the later stage, the company will continue to follow the development strategy of the combination of endogenous growth and epitaxial expansion, and actively seek new profit growth points through mergers and acquisitions on the basis of the existing main business.
The acquisition of Xinghe Interconnection's major asset restructuring has a long time span: 1) on September 07, 2015.09.07, the company announced plans to suspend trading in major asset restructuring. It is proposed to purchase 100% of the shares held by Horgos Micro-Innovation Star Venture Capital Co., Ltd., Kashgar Xinghe Venture Capital Co., Ltd., etc., which has been suspended since September 8, 2015. 2) on December 27, 2015, the company announced the report of major asset restructuring: 504 million shares were issued to the original shareholders of Xinghe Interconnection at 14.08 yuan per share and 3.911 billion yuan in cash to acquire 100% equity of Xinghe Interconnection (priced at 11 billion yuan). And a fixed increase of 491 million shares at 14.08 yuan per share to raise supporting funds of 6.91 billion yuan, which is intended to pay for this cash consideration, Internet entrepreneurship platform project and supplementary liquidity. Star River Interconnection focuses on the Internet business area, and the investment projects created are mainly concentrated in the Internet industry or the "Internet +" industry field where traditional industries and Internet are integrated. The performance commitment for 16-18 years is to deduct non-net profit of not less than 10.5,14 and 1.7 billion yuan.
Continue to sell or lease shops and concentrate resources to support the development of the company's multi-brand and full-product customization business.
On March 10, 2016, the company announced the sale of one Beijing shop (houses and corresponding land) in 15 years, of which the building floor area was 5147.66 yuan and the land area was 381.62 yuan, with a transfer price of 165 million yuan. 13 shops were leased in the past 15 years, with a total floor area of 15700 yuan, with a recognized income of 3.9025 million yuan. Improve the efficiency of the use of assets.
The company will continue to sell / lease no more than 29 shops (no more than 24 in 15-year plan) in 2016 at an original purchase cost of no more than 850 million yuan. On the one hand, the funds can be used for the company's multi-brand development strategy, full-category private customization business and e-commerce development; on the other hand, improve ping efficiency and single-store performance, improve the quality and level of terminal operation.
On April 23, 2016, the company announced that 16Q1 sold one Beijing shop with a floor area of 3091.92 square meters and a transfer price of 96.2678 million yuan. the matter has now been transferred and the revenue is expected to be confirmed in the second quarter; 18 shops have been rented out, with a recognized income of 2.4065 million yuan.
The pressure on the main business is obvious, and the channel adjustment continues.
The company's realized income from 2012 to 2015 was 1.179 billion yuan, 1.259 billion yuan, 1.029 billion yuan and 1.013 billion yuan respectively, and the net profit attributed to the parent company was 140 million yuan, 71.3911 million yuan,-46.590 million yuan and 22.5861 million yuan respectively. The gross profit margin decreased year by year, from 41.59% in 2012 to 27.64% in 2015. 14 years of losses, 15 years of deduction of non-net profit is still a loss, the company's main business is facing greater pressure, mainly due to the downturn in terminal consumption, rising labor costs and the decline in the price of group customized orders. In the face of adverse changes in the external environment, the company has made a series of adjustments in products, marketing channels and internal management, including: (1) optimizing marketing channels, closing shops with substandard profits in time, and strengthening the fine management of marketing terminals to improve single-store sales; the future channel adjustment will continue, and the company plans to sell or lease no more than 29 stores in 20 years. (2) adjust the product structure to form an e-commerce sales model of offline inventory products + online ordering, and carry out product research and development according to the popular styles of the whole network combined with the company's own technological advantages. small batch production, rapid return, effective control of inventory, through data management and the establishment of customer database, so that the brand can more accurately grasp the consumer needs of customers. At the same time, the online customization business is tried out in some stores. (3) to speed up the construction of discount stores and organize special sales in time to further improve the construction of inventory channels. (4) comprehensively promote multi-brand full-category customization business, continue to promote Planio, Patropil premium customization business, royal bridegroom wedding customization business, Chinoor personalized full-category customization business; speed up the construction of multi-brand customization stores, single-brand customization stores and compatible customization stores, and integrate the concept of "universal customization" and the route of "high quality and affordable price". In 2016, we plan to launch a personalized and exclusive "electronic wardrobe" project to create an O2O three-dimensional marketing model and seek the transformation of the commercial model.
The sale of beneficiary stores is expected to greatly increase 16Q2 performance, equity changes, and there are still expectations of transformation and mergers and acquisitions.
The company estimates that the net profit of 2016H1 will be 1,828.93-20.902 million yuan, an increase of 250,300% over the same period last year, mainly contributing to the sale of shops. We believe that: 1) in the main business, the company suffered a loss in 2014 and is still in the process of adjustment. We judge that under the background of sluggish terminal consumer demand and rising labor costs, with the promotion of the company's measures such as optimizing product structure, adjusting marketing channels and developing e-commerce, the performance of menswear will improve slowly; 2) the company plans to sell / lease no more than 29 stores in 16 years, and it is expected that the processing shops will continue to contribute to the disposal income of non-current assets and improve their performance in the future. 3) stop planning to acquire Xinghe Interconnection, but the company's strategic thinking of seeking extension expansion and developing new growth points of performance remains unchanged, and there are still expectations of transformational mergers and acquisitions in the future.
Sinur Group and Groom International (controlling shareholder and concerted actor) transferred 10 million shares and 50 million unlimited conditional tradable shares to Huaxia Life respectively, while Sinur Group transferred 15 million shares to Chen Tao, a natural person. After the completion of the transfer, Sinur Group is still the largest shareholder, Wang Guibo is still the actual controller, Huaxia Life has become the second largest shareholder, holding 60 million shares, accounting for 18.75%. 16.3.14 Huaxia Life transferred 55 million shares to Chongqing Xinsanwei, which will account for 17.19% after the completion of the transfer.
The company held an online investor briefing on April 25 and resumed trading on April 26. The speed of recovery of the company's main menswear is still affected by the end-consumption environment, and the sale of stores is expected to improve performance. Adjust the 16-18 EPS to 0.10,0.11,0.12 yuan, the current valuation is higher, but consider the company's future transformation and M & An expectations, increase the rating.
Risk hint: the progress of epitaxial M & An is not as expected and consumption continues to be weak.