Seven Wolf: The main business continues to adjust and upgrade, and actively build a fashion consumption investment platform

The company’s income increased by 1.2%in the first half of the year, and the net profit of the mother fell 5.6%, which met market expectations. The company’s 16H1 achieved revenue of 1.14 billion, an increase of 1.2%year -on -year, and the net profit attributable to the mother was 110 million, a decrease of 5.6%year -on -year, and the EPS was 0.14 yuan, which was in line with market expectations. In the second quarter, revenue fell 11.5%year -on -year to 440 million, and net profit attributable to mothers fell 6.3%year -on -year to 40.84 million. The company expects the net profit to return to the mother in the first three quarters of 150 million to 180 million, a decrease of 0-20%year-on-year. The main reason is that the order of 16 years will be reduced by customer orders.

In the first half of the year, the company continued to comprehensively transform and optimize channel terminals, and the e -commerce business increased rapidly. 1) 16H1 Company continues to close some of the invalid stores, transforms shops that do not meet positioning, and set up some stores. In this process, the reasonable layout of different products is based on different products, including the opening of brand image stores (core business districts, guarantee brand image) and Youxan quick shopping stores (other business districts, selling high cost -effective basic models). At the same time, the company continued to promote the work of the subsidiaries and terminal stores, promoted the management plan of the direct -operated member, and discussed the new cooperation model with the agent to stimulate the vitality.

2) Online, the company continues to enrich categories and cooperates with qualified suppliers to try to operate specialized products such as outdoor series. H1 e -commerce revenue increased by more than 40%to nearly 400 million, and revenue accounted for 35%.

The gross profit margin decreased slightly, and the quality of assets remained stable. 1) The company’s comprehensive gross profit margin in the first half of the year was 39.2%, a slight decrease of 0.9PCT year -on -year. The gross profit margin of shirts has decreased year -on -year, and the gross profit margin of other clothing products has increased slightly, while low gross profit -making products have the fastest income. Sales and management costs decreased by 0.8 and 1.1PCT to 17.2%and 10.4%, respectively. The net interest rate dropped slightly by 0.7PCT to 9.2%year -on -year. 2) Investment decreased by 140 million to 700 million compared with the beginning of the year, and the accounts receivable decreased by 80 million to 180 million compared with the beginning of the year, and the quality of assets was stable. The net operating cash flow decreased by 38%year -on -year to 85.92 million, mainly due to the decrease in sales repayment+bill settlement due to increased payment.

The core strategy of industrial+investment is clear, promoting the upgrading of seven wolf brands, and gradually promoting investment around the field of fashion and large consumption. The company’s existing main business is the foundation, and the investment business is motivation. 1) In terms of main business, on the basis of maintaining the positioning and tone of the seven wolf brand, the products, channels and supply chains are adjusted and upgraded. On the basis of continuing the product in the brand, the company has added a newly developed parity series to achieve full price belt product coverage. 2) The company is actively creating a fashion consumer investment platform around the field of fashion and large consumption. In the first half of the year, the company was involved in cultural dissemination (such as 2%equity of Shanghai Jiayu) and cross -border e -commerce (such as indirect investment and locating luxury goods imported cross -border e -commerce Farfetch 0.34%of the equity). It is expected that the company will continue to tap high -quality projects in the future.

The company is constantly creating a fashion group. After the main business adjustment and upgrading, the performance is expected to gradually recover, and the cash assets on the account will continue to deploy the investment in the fashion consumption field in the future. Yuan/share), both safety margin and elastic space, maintaining an increase in rating. The company’s cash+wealth management of about 3.4 billion, bank borrowing of only 100 million, property asset valuation is expected to be more than 2 billion, and the current market value is 8.5 billion. Asset impairment preparations are consolidated. In the future growth point.

According to the company’s recent situation, we slightly lowered profit forecasts, and the EPS is expected to be 0.37/0.43/0.49 yuan (the original prediction at 0.40/0.46/0.52 yuan), respectively. Essence

Author: ArticleManager