Zhou Dasheng (002867) 2018 Annual Report Follow-up Review: Channel Store Expansion and Diversified Products Boost Performance Growth and Maintain Recommendation
Event summary The company achieved operating income of 48 in 2018.
70 ppm, an increase of 27 in ten years.
97%; realize net profit attributable to shareholders of listed companies.
0.6 million yuan, an increase of 36 in ten years.
15%; Realize attributable non-net profit 7.
52 ppm, an increase of 32 over the same period last year.
Net operating cash flow was 3.
670,000 yuan, an increase of 3 over the same period last year.
Our Analysis and Judgment (I) Expansion of franchise model and diversified products promoted revenue, and net profit increased significantly. In 2018, the company achieved operating income of 48.
700,000 yuan, an increase of 10 over the same period last year.
6.4 billion, of which self-operated offline sales and online sales were 11 respectively.
5 billion revenue, an increase of 10 year-on-year.
86% / 23.
69%, contributed 1.
67 trillion revenue increase; franchise business achieved revenue 32.
470,000 yuan, up 35 before.
14%, contributing 8.
44 trillion revenue increase, of which franchise business increased wholesale revenue and increased 38.
83%, franchise brand royalties / affiliate management services achieved revenue 3 respectively.
72 ppm, corresponding to a 10-year increase of 26.
01% / 26.
22%, respectively contribute 0.
Revenue increase of 3.6 billion U.S. dollars; other main businesses such as supply chain and financial microfinance are new projects in the second half of 2017, totaling zero in the current period.
From a business model perspective, franchise sales and self-operated offline sales maintain a high share, contributing 66 in 2018 respectively.
67% / 23.
14% of the main operating income, of which the revenue of franchised stores increased by 3 over the same period last year.杭州夜网
53 averages, a decrease of 3 below the self-operated line.
58 averages, both of which remain relatively stable.
From the perspective of product categories, plain gold jewelry / accessory jewelry / other jewelry contributed 11 respectively.37/30.
03 billion revenue, an increase of 15 year-on-year.
15% / 33.
17% / 17.
26%, corresponding to the increase in revenue 1.
50 ppm / 7.
68 ppm / 43.
0.94 million yuan.
Prime gold jewelry / replacement jewelry accounted for 23% of total operating income.
34% / 63.
30%, the proportion of prime gold jewelry shows a downward trend, while the proportion of jewelry has increased steadily year by year. At the same time, the purification changes in 2018 compared to the same period of the previous year were -2.
The company’s attributable 苏州桑拿网 non-net profit in 2018 increased by 1 compared with the same period last year.
8.5 billion US dollars, mainly benefited from the reported product development and improvement, product line is rich and complete, driven by factors such as franchise to continuously promote market expansion, the company’s operating capabilities and profitability have steadily increased.
(2) Comprehensive gross profit margin increased by 1.
62pct, during which the rate of expense rose by 0.
45pct’s 2018 consolidated gross profit margin was 34.
00%, an increase of 1 compared with the same period last year.
62 units; net sales margin was 16.
55%, rising by 0 every year.
The self-operated offline and franchise business gross margins exceeded 0, respectively.
36 units; gross profit margins of prime gold and accessory jewelry products increased by 2.
The increase in gross profit margin was mainly due to the significant increase in gross profit margin of franchise business with relatively high revenue.
98%, ranking rose 0 in the same period last year.
The sales / management / financial expense ratios are 10 respectively.
66% / 2.
59% / 0.
54%, corresponding to a change of -1.
The increase in sales expenses was mainly due to the increase in expenses such as labor costs brought by business expansion; the increase in management expenses (including research and development expenses) was the share-based payment expenses of 4070 generated by the first equity incentive in the reporting period.480,000 yuan; the increase in financial expenses was an increase in bank borrowings and gold leases and increased interest payments during the reporting period, corresponding to an increase in index expenditure by 1900.
RMB 190,000, exchange loss gains and benefits increased by 1873.
79 thousand yuan.
(3) “Self-employed + franchise” construction extension network expansion, supply chain optimization and integration, grasp the channel construction company has established a wide and deep coverage of “self-employed + franchise” chain network, the first and second-tier cities core business district layout self-operated stores,It has a strong radiating effect and driving effect on the development and operation of franchise stores around the city and third and fourth tier cities.
Through asset-light and integrated operational business strategies, the company focuses on brand operations, channel management, product research and development and supply chain integration, and continuously improves its brand image and influence. In 2018, the company continued to maintain a rapid market development rate and effectively opened new stores.872, a net increase of 651, including a net increase of 625 franchise stores, a net increase of 26 self-operated stores, the total number of stores continued to grow, at the end of the reporting period, a total of 3375 stores, of which 3073 franchise stores, 302 self-operated stores.
Outside the channel, the company has established a set of effective raw material suppliers, outsourced manufacturers / designated suppliers to select, manage, evaluate and eliminate mechanisms to achieve product quality control, production progress, production costs and supply chain channel changesTimely control and quick response to other information.
At the same time, aiming at the different growth of the business scale, the company has established long-term cooperative relationships with several national logistics companies with the strongest overall strength, which has improved the efficiency and accuracy of goods delivery, and the daily order processing capacity has been continuously improved.
(4) The brand image and value are constantly improved, the product matrix is rich to meet the diversified consumer demand, and according to brand positioning and strategic planning, the company has integrated a comprehensive, three-dimensional brand integrated marketing strategy, and strengthened brand recognition by optimizing brand image spokespersons;Necessary pivotal jewellery design competitions, participating in national industry fairs, implementing featured project marketing, public relations marketing and affiliate marketing; comprehensively covering target consumer groups, and continuously increasing the awareness, reputation and loyalty of the “Chou Dasheng” brand.
According to the certification issued by the China Baoxie Association, the market share of the “Zhou Dasheng” brand ranks among the top three in the local jewelry market.
At the same time, since 2011, the company has been awarded “World’s 500 Most Valuable Brands” by the World BrandLab for eight consecutive years, with a brand value from 305 in 2017.
58 million rose to 376 in 2018.
The company’s products are mainly aimed at fashionable women pursuing a quality of life. It has determined that diamond jewelry is the main product, 100-face cut diamond jewelry is the core product, gold jewelry is a popular product, Caibao jewelry / gold inlaid jewelry / platinum jewelry / K goldJewelry and other product portfolio strategies.
At the same time, in order to adapt to the positioning of the brand and the differences in regional consumption needs, the company planned a combination of styles and styles based on different design styles and themes, and established a multi-dimensional product style library.
At present, the company has designed more than ten different series by locating five categories of consumers, including energetic girls, happy women, intellectual beauties, glamour elites, and goddess of starlight, to fully meet various needs.
Investment suggestions Zhou Dasheng scaled up market expansion efforts, steadily increased market share, and strived to enhance the brand’s influence and radiance. In 2018, a net increase of 625 franchised stores was achieved, a growth rate of 25% (compared with a net increase of 286 franchised stores in 2017); Continue to improve product development efforts, give full play to the company’s competitive advantages of diamond substitute products, and constantly enrich and improve product lines to meet market demand for consumer demand.
Therefore, we predict that the company’s revenue will reach 60 in 2019/2020/2021.
790,000 yuan, net profit 10.
99 trillion, corresponding to PS2.
96 times, corresponding to PE17 / 14/12 times.
Risks suggest that industry brand competition is intensifying; poor management and operation of franchise stores; fluctuations in raw material prices.