Anner (002875) 2018 Annual Report Review: Steady Growth in Performance and Continuous Optimization of Children’s Wear Leads
The 18-year revenue increased by 18%, and the net profit also increased by 21%. The growth rate of 18Q4 results has improved. In 2018, the company achieved operating income of 12.
1.3 billion, an increase of 17.
56%, slightly lower than long-term expectations, mainly due to the income growth rate of 18Q4, attributed to net profit of 8,338.
670,000 yuan, an increase of 21.
08%, deducting non-net profit 6919.
610,000 yuan, an increase of 27.
87%, basically in line with expectations, with EPS of 0.
63 yuan, a pair of dividends 1.
60 yuan (including tax).
The growth rate of deducted non-profit is higher than the income mainly due to the decrease in the financial expense ratio and the growth rate is reduced. The growth rate higher than the net profit is mainly reduced by the government subsidies included in the current profit and loss.
In terms of quarters, 17Q3-18Q4 company revenues increased by 2 at the same time.
06%, net profit attributable to mother increased by -60.
In 18Q3, affected by the number of bases, the growth rate of revenue increased, and the sales expense ratio fell by 3.
50PCT, financial cost rate decreased by 1.
35PCT drove a substantial increase in net profit; 18Q4 was affected by weak consumption in the apparel industry and the gradual expected growth rate during the Double Eleventh period. Revenue growth improved and the sales expense ratio increased by 0.
85PCT, the increase in asset impairment losses has led to a relative growth in net profit.
The growth rate of online direct sales is relatively high, and offline same-store contributions contributed to the growth. In the second half of 18, the net store opening channel was restored. In 2018, the company’s offline and online channels respectively achieved revenue7.
9.2 billion, 4.
1.7 billion yuan, an increase of 9.
Among them, offline direct sales achieved revenue6.
3.5 billion, an increase of 10.
28%, mainly due to the company’s optimization of the channel structure, the development of shopping mall stores led to increased store efficiency, the number of stores increased slightly; offline franchise achieved revenue1.
5.7 billion, an increase of 5.
11%, after the optimization of franchising channels, the store efficiency increased and the number of channels improved; online direct sales achieved revenue3.
5.8 billion, an increase of 43.An increase of 78% promoted the rapid growth of online revenue, with online franchise revenue of 5,846.
950,000 yuan, an increase of 10.
As of the end of 2018, the company had a total of 1,433 stores, down by 0.
14%, the store area is 8.
590,000 square meters, an increase of 8.
32%. Net openings will resume in the second half of 2018, with 46 net openings.
At the end of 2018, the company directly operated 990 stores, with an increase of 1.
64%, 443 franchise stores, the extension dropped by 3.
The company’s store efficiency has continued to increase, and the direct-operated store increased by 8 in 2018.
50% to 64.
170,000 yuan, mainly due to the closure of inefficient stores, the proportion of shopping malls and the increase in store area, as of the end of 2018 has 264 directly operated shopping mall stores, accounting for 26 directly operated stores.
67%; revenue from franchised stores in 2018 was 35.
450,000 yuan, an increase of 9.
38%, mainly due to the company cleaning up inefficient stores and improving the quality of franchisees.
In terms of products, in 2018 the company’s children’s clothing, children’s clothing, and other business income were 9 respectively.
9 billion, 2.
190,000 yuan, 335.
440,000 yuan, up by 11.
The company expanded product research and development, expanded the category of children’s clothing, and drove rapid revenue growth in this category.
The gross profit margin of the main business increased, the expense ratio decreased, and the inventory pressure increased. The gross profit margin of the company decreased by 0 in 2018.
21PCT to 55.
25%, mainly due to the penetration of other businesses (sales of containers to franchisees, etc.), the increase in cost, the gross profit margin of the children’s clothing industry also increased by 0.
84PCT to 57.
37%, mainly due to the company’s strengthening of offline retail terminal discount control and strengthened cost control efforts.
18-year-old children’s clothing, children’s clothing gross margin was 56.
17Q3-18Q4 gross profit margins were 59.
98% (-1.12PCT), 55.
87PCT), 18Q3 online promotion activities led to a slight increase in the decline in gross profit margin, and 18Q4 companies strengthened cost control to drive a rise in gross profit margin.
Expense ratio: During 2018, the expense ratio decreased by one.
20PCT to 40.
44%, of which the selling expense ratio decreased by 0.
29PCT to 40.
44%, mainly due to the company’s strengthening of advertising and advertising, packaging and transportation expenses management; management expenses rate also decreased by 0.
05PCT to 6.
83%, a small change; the financial expense ratio also fell to 0.
86PCT to -1.
00%, mainly due to the increase in interest income from idle funds.
Other financial indicators: 1) The inventory at the end of 2018 was 4.
28 ppm, an increase of 44 from the beginning of the year.
12%, mainly due to: a) the company’s winter stocks decreased in 2018, but the winter clothing sales fell short of expectations due to the warmer weather; b) some spring and summer goods storage time in advance in 2019; c) the company’s shopping malls and other large stores, Increase stocking.
The inventory income ratio in 2018 was zero.
35%, inventory turnover profit1.
50, increase by 0 respectively.
21, mainly due to the expansion of inventory at the end of the year, the turnover rate has improved.
2) The accounts receivable at the end of 2018 was 6,936.
390,000 yuan, an increase of 3 from the beginning of the year.
82%, mainly due to an increase in distribution revenue; the turnover rate of accounts receivable increased by 0 in 18 years.
52 to 17.
57, the year is basically the same.
3) Asset impairment losses increased by 744 in 2018.
25% to 2013.
480,000 yuan, mainly due to the increase in inventory, the company’s provision for inventory falling prices increased by 776.
78% to 1850.
4) Operating cash flow in 2018 also decreased by 15.
09% to 4460.
800,000 yuan, mainly due to the purchase of goods, receiving cash paid for labor services increased.
The company enhances brand competitiveness, operational capabilities, and promotes sustained growth. The company continues to increase design, marketing, and brand competitiveness.
1) The company continues to develop comfortable, safe, and refined children’s clothing products, and cooperates with the well-known French fashion consulting and design company Beclair to determine seasonal trends, develop “capsule” concept fashion products, and strengthen the mid-to-high-end brand image.
2) The company upgrades offline store decoration, window design, product display, etc. to enhance brand image, establish cooperation with well-known domestic maternal and infant websites to expand the influence of potential target customers, and bring social media platforms such as WeChat, Xiaohongshu, and DouyinYoung consumer groups to expand brand influence. The company optimized its supply chain and commodity management, and enhanced its operational 深圳桑拿网 capabilities.
Strengthen the flexible supply chain management of commodities, and make some of the products with high quality requirements suitable for multi-segment production into star single products, subdivide, batch production and distribution of flexible supply chain management methods to promote single store revenue increase.
In 2018, the company cooperated with Roland Berger to launch a product management system transformation project, conduct product life cycle management, optimize product management models, processes and organizational structures, and improve terminal sales discounts and sales rates.
The competition pattern of the children’s clothing industry is widely dispersed, and there is a lack of national brands in the high-end market.
The company continues to strengthen its brand image, optimize the supply chain and enhance store operation capabilities, increase the number of members and product sales, increase the discount rate of terminal sales, seize market share, and promote continued growth in performance.
The company is expected to re-enter the store opening cycle and maintain rapid growth online. We believe that: 1) In terms of offline, the company’s direct operation resumed in 2018. It is expected that more than 150 directly operated stores will be added in 2019, and the number of franchised stores will remain flat or slightly increase.; The company’s terminal area continued to increase, the proportion of shopping malls increased, the discount rate and sales rate improved after brand influence and merchandise operation capacity improved, and the store efficiency maintained rapid growth.
2) On the online front, the company continued to increase investment to promote Tmall, Vipshop and other channels to maintain revenue growth, and expand e-commerce channels such as JD.com, Gathering, and Inventory to drive overall online revenue to maintain a rapid growth rate.
3) The company has continuously strengthened its terminal discount rate control and cost control capabilities, lowered the proportion of online revenue with low gross profit margin, and improved overall gross profit margin and remained basically the same.
The company re-entered the store opening cycle, channel optimization, store efficiency and store efficiency continued to increase after the proportion of shopping malls and operating capacity increased. Online is still in a rapid growth stage, and the leading mid- to high-end children’s wear will gradually consolidate in the future.
As the company’s revenue growth rate slightly exceeded expectations, we maintain our EPS forecast for 2019 to be zero.
77 yuan, lowered EPS to 0 in 2020.
93 yuan, EPS is predicted to be 1 in 2021.
12 yuan, which currently corresponds to the doubling of PE on 26th, 19th. Under the background of the rapid growth of the overall consumption of clothing, it is optimistic that the children’s clothing industry will continue to grow. The company’s future growth space is contradictory.grade.
Risk warning: upstream raw material prices are rising, industry competition is intensifying, and store openings are not up to expectations.