The company's main business is growing well
The company's revenue and net profit have shown an upward trend in recent years. In 2012-2017, operating income grew 9.59%, and Guimu's net profit grew at a compound rate of 19.57%. The first three quarters of 2018 achieved revenue of 1,684 million yuan, an increase of 9.42% over the previous year, and Guimo's net profit was 180 million yuan, a year-on-year decrease of 20.73%. The main reason was the liquidation of the subsidiary Shantou Manifin in the third quarter, which resulted in large unrecurring losses and dragged down the net profit of the mother. The company's gross margin level is relatively stable, and the net profit margin level continues to rise, showing good profitability. The company's operating indicators continued to improve, and the number of inventory turnover days and accounts receivable turnover days showed a downward trend year by year.
Multi-brand layout, the main brand is the leader in the underwear industry
The company currently has 8 brands, including 4 women's underwear brands, 2 online women's underwear brands, 1 men's underwear brand, and 1 online menswear brand. Among them, the “Manifin” brand has been the leading brand in the underwear industry for many years.
Collaborative development of online and offline channels
The company has now formed a channel layout for online and offline collaborative development. Online channels currently account for 31.13%, and the growth is good. Combining direct sales and franchises of offline channels, the total number of channels is 2,588.
Profit Forecasts and Investment Ratings
The company's 2018-2020 EPS is expected to be 0.49/0.64 /0.70 yuan/share, respectively, and the current price corresponding to PE is 16/12/11 times respectively. The company is a leader in the underwear industry, operates steadily, and gives the company a “careful increase in holdings” rating.
Risk warning
There are many companies in the underwear industry. If the company cannot cope with market competition, it will face operating risks; the company currently has eight brands, which require higher requirements in terms of capital, personnel, management, etc., and there are many brand operating risks; the company faces the risk of changes in terminal demand.