Pathfinder Business Development To Accelerate The Improvement Of Outdoor Ecological Closed Loop

The company announced the semi annual report in 2014, and realized the main business income of 622 million yuan in the first half, an increase of 21.1% over the same period last year. The net profit of the public shareholders belonging to the listed company was 123 million yuan, up 26.93% compared to the same period last year, corresponding to EPS was 0.24 yuan, which was in line with the expectation.

Speed up "high school slowdown", the rapid development of electricity providers to enhance the overall profitability

More than 20% of revenue and performance growth shows that the Pathfinder is still the highest growth target in the brand clothing sector, but the "high school slowdown" trend is still constrained by the sluggish demand for terminal demand and stimulating market competition. The growth rate of 26.93% is slower than the 35.29% level of the same period last year, and the net profit growth of 26.93% is also slower than the 63.12% level of the same period last year.

2014 in the first half of the year, the gross margin of 49.55% increased by 48.76% compared with the same period last year. We believe that the main reason is the improvement of the proportion of the electricity business.

In the first half of 2014, the electricity supplier income reached 162 million yuan, the growth rate was as high as 127%, accounting for 26%, which accords with the judgement that our annual electricity supplier income will account for 25-30%.

In the first half of the year, the cost ratio (the sum of management and sales expenses) of 25.61% was also 2.3 percentage points lower than that of 27.88% in the same period last year.

Therefore, higher gross margins and lower cost rates will further enhance the overall profitability of the future.

SKU is smaller and product standardization is stronger, so it is more suitable for online business development and integration, and the influence and stickiness of leading brands are more prominent.

Therefore, we are more optimistic about the online development of the outdoor industry.

The scale of e-commerce in 2013 was 280 million yuan, up by 149% over the same period last year. It is expected that the growth rate will remain above 100% in 2014, and the scale is expected to exceed 500 million.

The construction of the outdoor ecosystem based on the green field network is now in an orderly way. The green field travel has been implemented online in July, and the future is aimed at opening up the closed loop of products, evaluation and payment.

In terms of multiple brands, the company will also cooperate with Parker's children's clothing to launch the "Pathfinder" children's wear brand.

We believe that the outdoor ecological integrity loop with "multi brand + outdoor travel + vertical electricity supplier" is gradually improving, and is expected to be launched next year, and its effect deserves attention.

The earnings forecasts for EPS in 2014 and 2015 were 0.62 and 0.77 yuan respectively, corresponding to dynamic PE of 25 and 20 times respectively.

The closed loop construction of the outdoor ecosystem for the pformation of goods and services is in an orderly way, and the deep integration and coordination between the various sectors will start in the future. The growth space will also be broader, highlighting the long-term investment value and maintaining the "recommended" rating.