Grace (603808): Steady multi-brand efforts of major brands beat first-quarter results

Grace (603808): Steady multi-brand efforts of major brands beat first-quarter results

In the first half of 2019, the company’s revenue and net profit attributable to mothers increased by 17 respectively.

09% and 17.

90%.

In the second quarter, single-quarter revenue and net profit attributable to mothers increased respectively.

05% and 24.

72%.

The main brand is stable, and the multi-brand power companies in the first half of the year, the major brands ELLASSAY, Laurel, EdHardy, IRO, VivienneTam revenue increased by 7%, respectively.

76%, -6.

21%, 40.

82%, 248.

98%.

The single quarter in the second quarter increased by 7.

66%, 23.

38%, -17.

32%, 86.

06%, 162.

38%.

The main brand maintained steady growth,杭州夜生活 Laurel improved significantly, and EdHardy’s slight change was mainly to give franchisees a certain proportion of return and exchange and franchisees to share risks, IRO terminal sales growth, multi-brand synergy advantages, Vivienne Tam continued to grow.

The related brand stores were 296, 40, 174, 53 and 14 respectively, which decreased by 16 earlier, increased by 3, decreased by 7, increased by 4, increased by 1

Baiqiu E-commerce achieved a net profit of 2575 in the first half of the year.

390,000 yuan, an increase of 18 every year.

92%.

The company’s gross profit margin was stable in the first half of the year, and the expense ratio fell during the period.

03%, 68 compared with the same period last year.

71% remained basically stable.

In the first half of the year, the sales expense ratio and management expense ratio were 30.

27% and 13.

56%, compared with 31 in the same period last year.

47% and 14.

50%, the former is due to a reduction in advertising costs, and the decrease in share-based payment costs.

The company’s operating indicators continued to improve, the net operating cash flow increased significantly, and the efficiency continued to increase. The company’s inventory turnover days and accounts receivable turnover days in the first half of the year were 227 days and 51 days, respectively, compared with 235 and 48 days in the same period last year.Turnover days improved and accounts receivable turnover days remained stable.

Net operating cash flow of the company in the first half of the year 2.

31 ppm, an increase of 28 in ten years.

99%.

The expected earnings for 2019-2021 are 1.

32 yuan / share, 1.

59 yuan / share, 1.

For 90 yuan / share, we are optimistic that the company’s performance will accelerate quarter by quarter, and the channel development of the main brand will gradually accelerate in the second half of the year. Other brands are expected to continue to grow, and Baiqiu will continue to develop rapidly.The current price corresponds to 11 times this year’s PE, with reference to a comparable company’s 14 times PE, giving a reasonable value of 18 this year.

48 yuan / share, maintain “Buy” rating.

Risk warnings of goodwill impairment risk; terminal retail downturn risk; multi-brand management risk;