Collis (603808): Steady growth of major brands, EH step adjustment leads to performance change
Net profit attributable to mother in the first three quarters of 19 2.
8 ‰, 10 years growth 2.
6%, slightly lower than expected.
1) Revenue growth was solid in the first three quarters.
In the first three quarters of 19, revenue was 18.
8 ‰, an increase of 8 in ten years.
6%, net profit attributable to mother 2.
8 ‰, 10 years growth 2.
6%, net of non-attributed net profit 2.
400 million, down 7 every year.
2) Ed Hardy adjustment affects Q3 performance.
Q3 achieved revenue in a single quarter6.
200 million, down 5 every year.
5%; net profit attributable to mothers was 84.88 million yuan, a year-on-year decrease of 20.
5%; net profit after deducting non-attribution to the mother was 62.95 million yuan, a year-on-year decrease of 36.
In the third quarter, the company concentrated on the franchisee’s return and exchange and made provision for the corresponding inventory depreciation.
However, two things have been basically completed in the third quarter and have little impact on subsequent results.
The main brand’s performance was solid and IRO’s growth was strong.
1) The main brand ELLASSAY is stable and the shop opening in Q3 is progressing smoothly.
ELLASSAY revenue is growing by 4 per year.
2% to 7.
4 ‰, gross profit margin decreased by 1.
5pct to 68.
8%. There were 5 to 307 net closing shops, of which 16 net closing shops in the first half of the year, and 11 net openings in Q3.
2) IRO’s global presence and strong performance growth.
IRO’s global revenue reaches 5.
100 million, of which IRP (excluding China) revenue increased by 11.
3% to 4.
30,000 yuan, IRO China revenue increased by 181 in ten years.
5% to 61.52 million yuan.
IRO has 55 directly operated stores, of which 7 to 20 are newly opened in China.
3) Ed Hardy and Ed Hardy X adjusted the performance variables.
Revenue is reduced by 17 per year.
2% to 3.
1 ppm, gross margin is 67.
At 7%, there are 8 to 173 net closed stores.The performance fluctuation was mainly due to the company’s strategic adjustment. In the third quarter, it concentrated on participating franchisees to return and exchange goods, transforming the Olle store into direct sales.
4) The profitability of the LAUREL brand is outstanding, and Q3 store opening has accelerated.
LAUREL brand revenues increase by 4 per year.
From 5% to 7,991 million, the gross profit margin is as high as 77.
0%, leading profitability, with a net opening of 13 to 47 stores, of which 3 years of net opening in the first half of the year, Q3 net opening of a single quarter.
5) Designer brands VVT and JPK are still in the incubation period.
VVT has a net increase of 1 store to 14 with a revenue of 1.
600 million, JPK’s new store opened in Q3, currently has two self-operated stores.
武汉桑拿 Store adjustment was basically completed, Q3 began to resume store opening, and direct sales grew steadily.
1) After the adjustment of Q3 stores was completed, the number of stores resumed a net increase.
In the first three quarters of 19, there were 6 to 598 net openings, including 15 net closings in the first half of the year and 21 net openings in Q3.
2) The offline growth is stable, and the online inventory consolidation is the mainstay.
Offline revenue grows by 3 per year.
3% to 15.
7 trillion, gross profit margin 69.
1% remained high.
Online sales revenue grows by 19 per year.
2% to 68.51 million yuan, accounting for less than 5%, due to the impact of liquidation of inventory, gross margin fell 4.
8 points to 49.
3) The rapid growth of direct sales and the decrease in the number of distribution 杭州桑拿 stores led to fluctuations in distribution performance.
Beneficial stores increased efficiency and the number of newly opened stores increased, and direct sales revenue increased by 14 each year.
7% to 9.
9 trillion; income from distribution income decreased by 8.
7% to 6.
US $ 600 million, mainly due to the closure of 11 distribution stores by ELLASSAY. EdHardy and Ed Hardy closed their Olle stores, reducing the number of distribution stores.
4) The performance of Baiqiu Q3 was impressive.
The first three quarters have been growing at a high speed, and we are now actively preparing for Double 11 and we can expect future performance.
The gross profit margin dropped slightly, the net profit margin fluctuated slightly, and operating cash flow was abundant.
1) Adjusted markup multiples and online inventory clearance resulted in lower gross profit margins.
In the first three quarters of 19, the company’s gross profit margin fell 3.
2pct to 66.
1%, mainly due to the reduction in markup rate of the main brand ELLASSAY and online clearance.
2) The expense ratio has increased and the net profit margin has decreased slightly.
Maximize the sales expense ratio by 0.
8 points to 31.
0%, the rate of management expenses (including research and development expenses) has decreased by 0 every year.
1 point to 13.
4%, the net interest rate decreased by 1 year by year.
6 points to 16.9%.
3) Accounts receivable declined and operating cash flow improved.
Accounts receivable fall by 9 each year.
0% to 3.
0 million yuan, the inventory increases by 12 every year.
7% to 5.
80,000 yuan, the net operating cash flow increases by 19.
6% to 3.
10,000 yuan, good cash flow development.
The company is a domestic leader in light luxury fashion. The main brands have continued to grow steadily. The performance of acquired brands has been strong. New brands such as IRO have entered the period of performance release and maintain an “overweight” rating.
Affected by the adjustments of Ed Hardy and Ed Hardy X, the third quarter results are lowered, and the profit forecast is lowered. It is estimated that the net profit will be returned to mother in 19-21.
7.4 billion (Originally, the net profit attributable to mothers was 19 to 21).
4.3 billion), corresponding PE is 12/10/9 times, maintaining the overweight rating.