Zhou Dasheng (002867): Consumption starts to expand, gross profit increases
Event On April 22, Zhou Dasheng released the 2018 annual report, and the company achieved a total operating income of 48 in 2018.
70 ppm, an increase of 27 in ten years.
97%; realized net profit attributable to mother 8.
0.6 billion, an annual increase of 36.
15%; net profit after deducting 佛山桑拿网 non-attribution to mother 7.
52 ppm, an increase of 32 in ten years.
In terms of quarters, the company’s Q1 / Q2 / Q3 / Q4 single-quarter revenue in 2018 was 9 respectively.
28 ppm, an increase of 16 each year.
53%; net profit attributable to mothers is 1.
11 ppm, an increase of 28 each year.
On April 28, Zhou Dasheng released the first quarter of 2019 report, and the company achieved operating income of 10 in 2019Q1.
97 ppm, an increase of 17 in ten years.
04%, achieving net profit attributable to mother 1.
9.4 billion, an annual increase of 20.
81%, realizing net profit deduction for non-attribution1.
850,000 yuan, an increase of 23 in ten years.
Brief Comment 1. The channel development efforts are effective, and the business performance is reported steadily and well. The company continues to focus on the concept value of the “Zhou Dasheng” brand, accelerate the upgrade of marketing strategies, vigorously develop channels, optimize market layout, and improve operational capabilities.
Driven by multiple factors, the company’s brand, products, channels, and supply chain have been comprehensively upgraded, driving the company’s main business to maintain a rapid growth rate in 2018 and 2019, and its market share has steadily increased.
I. In terms of products: 1) Embed jewelry business to achieve revenue of 30.
830,000 yuan, an increase of 33 in ten years.
17%, the proportion increased by 2.
47 points to 63.
30% are mainly franchised channel stores, and store efficiency is boosted. 2) Revenue from prime gold jewelry business11.
37 ppm, an increase of 15 in ten years.
15%, the proportion dropped by 2.
60pct to 23.
34%, despite the impact of the 18-year downturn in the consumption environment, but continued to maintain rapid double-digit growth; 3) Franchise management fee 3
30 ppm, an increase of 26 in ten years.
01%, the proportion decreased by 0.
11 points to 6.
77%; 4) Revenue from franchise management services 1.
72 ppm, an increase of 26 in ten years.
01%, the proportion decreased by 0.
04pct to 3.
53%; 5) Other businesses (including other jewellery, supply chain services, microfinance finance and other businesses) combined to achieve revenue1.
49 ppm, an increase of 41 in ten years.
61%, the proportion increased to 0.
89pct to 3.
06%; It is mainly due to the comprehensive development of new business including Baotong Microfinance Finance and Supply Chain Services.
Second, from the perspective of channels: 1) self-operated stores to achieve revenue11.
27 ppm, an increase of 10 in ten years.
86%, the proportion dropped by 3.
58pct to 23.
14%, the number of self-operated stores of the company returned to positive growth in 2018, while the core product revenue of single stores declined.
2) Franchise stores realized revenue of 32.
470,000 yuan, an increase of 23 in ten years.
69%, an increase of 3%.
53pct to 66.
67%, mainly contributed by the accelerated development of franchised stores within 18 years; 3) Internet channel revenue3.
50 ppm, an increase of 26 in ten years.
01%, the proportion decreased by 0.
25pct to 7.
18%; the company’s online sales are mainly concentrated in the Tmall flagship store channel, accounting for 96 of the overall Internet sales.
In 2019, the company will continue to cultivate its channels and maintain the pace of franchising in third- and fourth-tier cities.
In 19Q1, the company exhibited 88 franchised stores, driving a 17% increase in revenue.
04% to 10.
At the same time, the level of profit increased significantly, and net profit attributable to mothers increased by 20.
81% to 1.
2. The profitability reached a new high, and the expenses during the period increased in 2018. The company achieved a comprehensive gross 青岛夜网 profit margin of 34.00%, a year increase by 1.
72pct, mainly because the gross profit margin of prime gold jewelry improved (+2.
76pct), and the contribution of franchising channels with a higher gross profit margin;
55%, a year to raise 0.
In terms of period expenses, the company’s sales expenses subsidy in 2018 10.
66%, a decrease of 1 per year.
05 points; administrative expenses 2.
79%, increasing by 0 every year.
80pct, mainly due to amortization of equity incentive expenses; financial expenses 0.
54%, an increase of 0 every year.
71pct, mainly due to the increase in bank borrowings and the gold lease index during the year.
The company’s gross profit margin in 2019Q1 was 37.
35%, a substantial increase every year 2.
43pct, the highest value of the company in the past 8; net interest rate is 17.
67%, an increase of 0 every year.
Period expenses have increased, and the company’s selling expenses in the first quarter of 201912.
43%, a decrease of 0 per year.
57 points; administrative expenses 2.
74%, an increase of 0 every year.
89pct, mainly due to the increase of equity incentive expenses and amortization of intangible assets; financial expenses reset -0.
17%, increase by 1 every year.
Mainly due to the increase in cutting-edge and exchange losses.
3. The overall speed of store development has increased steadily. The efficiency of single-store stores has been steadily improved. Since 2018, while the company has stabilized the existing market, the channel expansion has been speeded up. In 2018, 872 new stores were opened, a net increase of 651, of which affiliated stores increased by 625 There were a net increase of 26 self-operated stores, and 10 stores were added to achieve operating income.
1.5 billion, further refined channel management.
The company’s pace of opening stores in Q1 2019 improved from the same period in the previous 18 years, but it still maintained a rapid pace of development.
The report has a total of 82 net increase stores, including 88 net increase in franchise stores and 6 decrease in self-operated stores.
As of March 31, 2019, the company has a total of 3,457 sales stores, including 296 self-operated stores and 3,161 franchised stores.
Single-store revenue has steadily increased. Driven by the increase in the proportion of jewelry included, the company’s single-store revenue in 2018 saw a double growth in gross profit.
Among them, self-operated shop single shop revenue was 396.
840,000 yuan, an annual increase of 11.
64%, the gross profit of self-operated single store was 118.
730,000 yuan, an annual increase of 12.
07%; single store revenue of franchise stores 118.
07 million yuan, gross profit 39.
810,000 yuan, an increase of 11 over the same period last year.
4. The consumption environment has picked up in 2019, and the benefit of jewelry consumption has boosted the indicators of improvement in the domestic consumption environment since 2019: the zero-to-two growth rate of the company has stabilized, and it has rebounded significantly since March.
According to the monitoring data of the All-China Business Information Network, the retail sales of 50 major large-scale retail enterprises nationwide increased in March 20192.
5%, the growth rate from January to February increased by 3.
In terms of categories, the retail sales of all categories have achieved positive annual growth, and the growth rate of retail sales of most categories has improved from January to February.
Retail sales of clothing, gold and silver jewellery, and household appliances increased by 0.
1%, the growth rate from January to February increased by 7.
2 and 10
The retail sales of grain, oil, food and daily necessities have achieved 1 respectively.
Positive growth of 6%.
With the recent gradual improvement of the macro economy, the loosening of the monetary environment, plus a series of policies to promote the economy, and the consolidation of sound policies and measures, the zero growth rate of the company is expected to maintain a stable and good trend, and optional consumption of jewelry will help improve.
Investment suggestion: We expect the company’s operating income from 2019 to 2020 to be 60.
14 ppm and 73.
08% is 10%, with annual growth of 23%.
52%; net profit attributable to mother is 9 respectively.
9.8 billion, 12.
08 million yuan, an annual increase of 23.
01%, EPS is 2.
05 yuan / share, 2.
48 yuan / share, the corresponding PE is 16 respectively.
9x, maintaining “overweight” rating.
Risk factors: optional consumption growth is lower than expected; channel expansion is lower than expected.