Semir Apparel (002563): The original business exceeded expectations and new business to be developed

The company’s Q1 2019 revenue / performance also increased by 63.

90% / 11.


The company’s Q1 revenue increased by 63 in 2019.

9% to 41.

200 million, net profit attributable to mother increased by 11.

1% to 3.

5 megabytes, of which Kidi Leeds combined in the fourth quarter of 2上海夜网论坛018 brought about 700-800 million operating income and a ratio of about 30 million yuan. According to our calculations, Semir’s own main business income / performance growth rate was 30% respectively/ About 20%.

The higher gross profit margin of the consolidated business also brought certain cost pressure to the company, and the company’s gross profit margin increased by 2 as well.

6PCT to 41.

7%, sales expense ratio / management expense ratio increased by 6.


0PCT to 23.

6% / 5.

9%, in summary, the company’s net interest rate fell by 3.

9PCT to 8.


Semir’s own business income has accelerated and children’s wear is strong.

According to our calculations, the company’s internal business revenue contribution is about 3.3 billion, with a growth rate of about 30%.

Offline channels: Children’s clothing 无锡桑拿网 brand Dragon Fighting has a stable level and maintains strong growth. We predict that the revenue of children’s clothing will grow by more than 30%; the casual reform reform bonus will continue to be released, and the expected revenue growth rate is more than 20%.

Considering that the company added more than 600 new stores in the second half of 2018 (Senma casual wear 300 / Barabala 313), the contribution of new stores and same-store growth are important drivers of its own business revenue acceleration.

We estimate that the same store of casual wear and children’s wear will achieve close to 10% / 20% growth.

E-commerce channels: As an important long-term engine of the company, we judge that e-commerce revenue has maintained rapid growth, with a growth rate exceeding 30%.

Consolidation impact and stock preparation affect inventory turnover and cash flow.

Affected by consolidation and company stocking, the inventory scale exceeded 66.

8% to 40.

7.6 billion (we estimate Kidiliz inventory is around 800 million), but compared to the beginning of 44.

2 trillion is now down.

The inventory turnover days increased by 17 days to 159 days per year, and the accounts receivable days were 41 days, a decrease of 4 days from the previous year. The company’s asset impairment losses also increased by 79.

26% to 1.

34 trillion, the increase in fees paid for preparing goods and introducing talents resulted in the company’s net cash from operating activities being -0.

3.3 billion.

Stores have developed steadily in 2019, and terminal growth has continued.

We expect that there will be about 200 casual wear and Barabara brand expansion stores in 2019. The casual wear business will continue to carry out product innovation and channel optimization. The boom of the children’s wear industry is relatively high.Maintain rapid growth.

Investment suggestion: As a leading company in casual wear and children’s wear, Semir’s apparel and children’s clothing business continues to advance internationally, its category matrix is improved, and Barbara’s leading brands continue to grow at a high speed.

The casual wear business experienced products and continued to recover after the supply chain upgrade.

It is expected that the company will realize net profit in 2019-2021.

500 million, current price 11.

31 yuan, corresponding to 19 times PE 19 times.

Maintain the “overweight” rating.

Risk reminder: The terminal retail economy is reducing risks; the risk of unsuccessful overseas business development.