桑拿

Zhou Dasheng (002867): Continuing fermentation in line with expected brand concentration

02/04/2020

Zhou Dasheng (002867): Continuing fermentation in line with expected brand concentration

Event: The first three quarters of 2019 achieved revenue of 38.

10 ppm, a ten-year increase of 7.

59%; net profit attributable to mother 7.

27 trillion, an increase of 22 a year.

31%; net profit of non-attributed mothers 6.

89 ppm, an increase of 21 in ten years.

78%.

Gross profit margin and net profit margin were 36.

76% / 19.

09%, ten years +2.

31ppts / + 2.

30ppts.

Single-quarter revenue for the third quarter of 201914.

21 ppm, an increase of 0 in ten years.

22%; net profit attributable to mother 2.

52 ppm, a ten-year increase4.

32%.

The first three quarters of the company met expectations and regained the advantage of brand concentration.

In the first three quarters of 2019, the company operated offline and online, and its franchise business achieved operating income8.

7.9 billion, 3.

4.4 billion, 24.

2 billion, respectively accounting for 23 of total revenue.

07%, 9.

02%, 63.

51%.

Offline 都市夜网 self-operated revenue exceeded the growth rate by about 1.

93%, online self-operated revenue growth rate of 40 in ten years.

82%, the annual growth rate of franchise business is about 4.

02%.

The company’s gross profit margin for sales has significantly increased and the supporting expense ratio has fallen, and revenue growth has slowed down to net profit growth.

In the first three quarters of 2019, the company’s gross profit margin and net profit margin were 36.

76% / 19.

09%, +2 each year.

31ppts / + 2.

30ppts.
At the same time, the company’s sales expense ratio, management expense ratio and financial expense ratio were 9 respectively.

84% / 2.

35% / 0.26%, -0 per year.

30% /-0.

09% /-0.

34%.

The improvement of the company’s gross profit margin combined with the increase in the three 成都桑拿网 types of expense ratios gradually realized that the company’s net profit growth rate was higher than the revenue growth rate.

The situation of exhibition stores gradually recovered, with a net opening of 412 stores in the first three quarters of 2019 and a net opening of 188 stores in the third quarter of 2019.

Among them, in the first three quarters, there was a net increase of 425 franchise stores and a net decrease of 13 in self-operated stores.

Because the company does not give guidance on the number of franchised stores in 2019, the market generally expects that Zhou Dasheng will only have about 300-400 stores in 2019.

The data from the third quarterly report shows that Chow Tai Sang’s net openings in the first three quarters reached 412, and the speed of exhibitions has increased, which will bring continuous business growth for the company.

Profit forecast and investment rating: The company will continue to benefit from the increased concentration of brands in low-tier cities, and promote franchisees to actively open at the bottom to continue to improve gross margins and reduce expense ratios.

In the future, through the rebound in consumption, the return will lead to a significant recovery in terminal sales growth.

We expect EPS for 2019-21 to be 1.

41/1.

68/1.

99 yuan, PE is 15/12 / 11x.

Risk Warning: The condition of the exhibition shop is lower than expected, the sales of jewelry are lower than expected, and the retail sales of gold and silver jewelry are lower than expected