Nine Mu Wang Has Made New Achievements In Promoting Channel Adjustment.

In the 1-9 month of 2014, the operating income of 1 billion 495 million yuan was reduced by 15.07%, the net profit attributable to shareholders of listed companies was 307 million yuan, which was reduced by 27.99%; the net cash flow generated by operating activities was 274 million yuan, minus 25.20%; EPS0.53 yuan, minus 28.38%.

Among them, the three quarter achieved operating income of 524 million yuan, the same reduction of 12.18%; attributable to shareholders of listed companies net profit of 88 million 111 thousand and 700 yuan, the same reduction of 34.83%; business activities generated net cash flow of 92 million 82 thousand and 700 yuan, the same reduction of 38.95%; EPS0.15 yuan, minus 37.50%.

Affected by the continuing downturn in industry and the impact of low-end competition, the company's performance has declined continuously since the 2 quarter of last year. In the three quarter of 14 years, gross margins were reduced by 2.37 percentage points to 55.84% as a result of discount promotions and the same high base number. At the same time, the company continued to increase the closing efficiency of inefficient and invalid stores, and continuously improve the terminal's retail capacity and store efficiency.

The future of the brand will mainly develop the shopping center store. The management mode will refer to the store management system, but the commodity structure is expected to be redefined.

For the industry as a whole, on the one hand,

The industry brand is undergoing the shuffle process.

At present, the mode of traditional wholesale affiliate is difficult to continue, and evolves to fine management mode, especially in the aspect of commodity design for consumer behavior and demand change. On the other hand, the domestic men's wear market is still growing, and the overall development gap is still large.

The clothing demand of mature male customers for business type always exists. This part of the consumer market is relatively stable, and benefits from the upgrading of consumption structure in the context of the expansion of the middle class. The growth trend of business dress demand is relatively significant.

The control of consumer demand and channel will be the future.

The emphasis of promotion.

Combined with the diversification of consumer demand, the company enriches product application occasions and adds leisure design.

It is expected that in the future, with the sales channels open, the online resources can be drained to the line, while online sales will be supported by the physical store experience service, so as to prepare for the timely launch of online shopping customized brands.

In 2014, the company vigorously promoted the commodity planning project, and plans to start a comprehensive application from the 2015 spring and summer commodity plan, so as to achieve the total value chain integration from commodity planning to terminal sales.

At the same time, the company adheres to the category of male trousers as the core strategy, strengthens the research and marketing of new products, optimizes the channel structure, pays more attention to the quality of new shops, optimizes the opening process and evaluation system, and enlarges the rectification and upgrading of the existing shop image. At the same time, in order to control operational risks, it actively closes some of the less profitable ones.

Terminal, with centralized resources invested in online and offline integrated construction; the company launched the O2O project in a comprehensive way, and has now completed the pilot sub warehouse integration, platform planning, and formulated the specific implementation plan for the same price on line and line.

The company further promotes strategic pformation and promotes retail capacity building. We believe that the company has certain advantages in the market share of men's trousers industry. Its brand influence, vertically integrated business mode and sound management team can provide certain support for the success of the pformation. It is expected that overall performance growth will be accompanied by the increase of market demand in the future, and the enhancement of profitability will be concentrated on the endogenous indicators such as marketability and store efficiency of new products.

It is estimated that the net profit attributable to the parent company in the 2014-16 years is 4.32, 4.82 and 537 million yuan, respectively, increasing by -19.58%, 11.50% and 11.41%, corresponding to EPS 0.75, 0.84 and 0.93 yuan respectively.

Considering that the performance of the company continued to be adjusted in 2014, it was expected to improve in 2015, giving the company 18xPE 2015, corresponding to the target price of 15.09 yuan.

The main uncertainties are: the continuing downturn in the retail market, the sluggish demand for terminals, the risk of continuous upgrading of raw materials, rentals and manpower costs.