Jinhong Group (603518): 19Q2 revenue growth improved month-on-month and continued to expand sales channels

Jinhong Group (603518): 19Q2 revenue growth improved month-on-month and continued to expand sales channels
19Q2 gross margin increased by 0 in the short term.3pct to 70.6%.19H1 company realized revenue12.87 ‰, a decrease of 6 per year.53%, net profit attributable to mother 0.25 trillion, a decrease of 78 a year.58%, gross margin is 68.86%, reduced by 0 every year.72pct with a net interest rate of 1.95%, a decrease of 6 per year.56 points.19Q2 income 5.99 ‰, a decrease of 3 per year.89%, net profit is 0.12 trillion, a reduction of 77 a year.31%, gross margin is 70.61%, a year to increase 0.29pct, net interest rate is 1.97%, a decrease of 6 per year.38 points. The growth rate of Q2 income improved month-on-month, and the growth of TW children’s clothing revenue was steady.Affected by the external retail environment, the company’s revenue increased and decreased in 19Q18.71%, the company actively adjusted its development strategy in 19Q2, and its revenue growth rate (-3.89%).19H1 VGRASS achieved revenue3.90 ‰, a decrease of 6 per year.70%, mainly due to the increase in direct sales channel revenue decreased 8.02% to 3.83 trillion, of which 19Q1 income decreased by 12.24%, 19Q2 revenue fell sharply and narrowed to 1.11%.19H1 TW achieved revenue 8.8.3 billion, a decrease of 6 every year.44%, of which 19Q1 income increased and decreased by 7.49%, 19Q2 revenue growth (-5.05%), a month-on-month improvement, in which women’s clothing and men’s clothing income decreased by 9 respectively.84%, 13.06%, children’s clothing income increased by 18.91%, in terms of channels, direct sales, franchise, and online channel revenues are reduced by 5 each year.79%, 35.83%, 2.14%. The gross margins of the 19H1 VGRASS and TW brands increased to 68, respectively.37%, 69.04%, reducing by 0 every year.17.1.23pct.The gross profit margin of VGRASS fell and the gross profit margin of the online channel was 59 due to the establishment of the Tmall flagship store by the brand.45%, lower brand gross margin. The effectiveness of TW stores remained stable, and the number of VGRASS stores realized a net increase.19H1 VGRASS, TW single store monthly income is about 40.15, 9.720,000 yuan, annualized 4.82 million, 1.17 million yuan, a decrease of 10.19%, 3.69%. Among them, the monthly revenue of TW single stores decreased. We believe that the main reason is that the 杭州夜网论坛 newly opened stores in the first half of 19 are in the cultivation period, and the average monthly revenue (9.79 thousand yuan) is lower than the same period of 18 years (10.570,000 yuan), the average monthly income of TW old stores has tripled.19% to 16.320,000 yuan.VGRASS expanded sales channels, and TW continued to optimize the channel structure.As of the end of 19H1, the number of VGRASS stores was 160, with 10 new stores, 3 closed, and 7 net openings; TW had 1,231 stores, 53 new stores, 54 closed stores, 1 net closed store, 17H1There are 54 and 6 net closed stores in 18H1. We think the store adjustment period may end. In addition, the company continued to expand its online channels, opening VGRASS, TW men’s clothing, and TW children’s clothing flagship stores. The company’s online income in 1H1 was 1.70 ppm, a slight increase of 0 per year.81%, gross margin is 65.71%, a decrease of 6 per year.28 points. Costs eroded net profit during the period.19H1 company’s net interest rate fell by 6.56 points to 1.95% is due to the company’s annual expense ratio increasing by 6.92pct to 65.66%, of which sales expenses increase by 6 every year.69pct to 46.99%, the company broadened sales channels, and promoted brand image, store costs, advertising costs, e-commerce fees increased, management + research and development costs shortened by 0.02pct to 9.82%, the R & D investment of the TW Korean design team increased, and the financial expense ratio increased by 0.21 points to 8.86%. Adopt diversified financing methods to reduce repayment pressure.The company acquired the TW brand in 17 years, generating long-term loans.As of the end of 19H1, long-term borrowings (Hangzhou Jintou Weige’s borrowings) were US $ 1.6 billion, and long-term loans due within one year (China Merchants Bank syndicated loans) were US $ 800 million, with expenditure increments of 8 respectively.00%, 4.75%, with expected maturity dates of 2021/6/30 and 2020/3/5, respectively.At the beginning of 19, the company issued a net amount of convertible bonds to raise funds.2.5 billion, of which 2.USD 9.9 billion was used to repay the syndicated loan of China Merchants Bank.With the relatively loosening of external financing policies, we expect the company to raise funds through various methods such as fixed increase, convertible bonds, etc., to reduce the pressure on the company to repay. The number of launch meetings increased, improving the ability to respond quickly to the market.The company has formed a pyramid-like three-dimensional brand matrix layout. In 19H1, it continued to expand R & D investment and consolidate brand competitiveness. R & D expenditure accounted for 4 of revenue.51%, increase by 1 every year.87 points.In addition, the company has established a large supply chain system to improve the response to the market, the quasi-delivery rate, and the follow-up cycle indicators are at a relatively high level. 1) Increase the issuing cycle from 4 times a year to 6 times a year; 2)Predict and prepare raw materials in advance; 3) Deploy the temporary split connection time of the SAP information system; 4) Enhance the capacity building of self-made factories; 5) Deploy big data and market signals, and adjust and supplement the design in a timely manner. Profit forecast and estimation.We estimate that the net profit for 2019 and 20 will be 1.88, 2.US $ 0.6 billion, as of the closing price of August 26th, 2019, corresponding to the price-earnings ratio of 10, 9 times, giving the company 10-11XPE in 2019, corresponding to a reasonable value range of 7.45-8.20 yuan, “Neutral” rating. risk warning.Terminal sales did not meet expectations, market acceptance of product upgrades was low, and new openings did not meet expectations.