Biyin Lefen (002832): Performance maintained fast growth and gross profit margin continued to increase

Biyin Lefen (002832): Performance maintained fast growth and gross profit margin continued to increase

[Event]On August 25, 2019, the company released a semi-annual report. In 2019H1, the company’s revenue was attributed to its net profit and the non-attributed net profit reached 8 respectively.

4.6 billion (+25.

15%), 1.

7.4 billion (+42.

01%), 1.

6.5 billion (+44.

63%), the company’s revenue in Q2 2019, net profit attributable to mothers, net profit attributable to non-mothers increased by 22 respectively.

45%, 17.

32%, 34.


[Comment]High revenue growth and strong profit growth.

(1) Deduct non-net profit to maintain high growth.

2019H1 equity incentive fee 1333.

The net profit attributable to shareholders of listed companies after excluding the impact is RMB 70,000.

77 trillion, an annual growth of 54.


In addition, due to scientific research in 2018, it is determined that the payment of taxes is based on a 15% tax rate, and the effective tax rates for 2018H1 and 2019H1 have reached 13 respectively.

55%, 27.

13%, while excluding equity incentive costs, tax rate effects (assuming that 25% effective tax rate is maintained in 2019H1), net profit attributable to mothers in 2019H1 is expected to increase by 27.

4%, still maintaining high growth.

(2) Stores, store efficiency maintained rapid growth.

At the end of 2019H1, the company’s stores reached 798 (value-added 16 times.

5%), a net increase of 34 companies compared with the end of 2018; direct sales at the end of 2019H1, with 385 franchises (23% increase over the years) and 413 (11% increase each year).

It is estimated that in 2019, there will be a net increase of about 80 stores over the main brand of Yinlefen, and a net increase of 30-40 stores in Venice brands, and the channel is expected to maintain rapid growth.

As the company continues to vigorously develop R & D, marketing, and implement a policy of “adjusting location and expanding area” at the channel end, we expect the same stores in Q1 and Q2 to grow by about 15% and 10-15%, respectively, with outstanding performance.

The gross profit margin increased significantly, and the expense ratio increased.

In 2019H1, due to the increase in the proportion of direct sales, the gross profit margin increased by 3.

67pct to 67.


Expense rate increased by 4 during 2019H1.

14pct to 42.


Among them, due to the expansion 返回码: 500 网站打不开?重查 of the business scale, the increase in store operation and packaging and transportation expenses, the sales rate for 2019H1 increased by 1.

45 minutes to 30.

74%; due to the impact of equity incentive expense accrual, 2019H1 management expense ratio increased by 2.

31 points to 12.


Cash flow increased significantly and operations fluctuated slightly. (1) At least cash flow has improved significantly.

2019H1 company’s net cash flow from operating activities reached 90.63 million yuan (+ 121%).

(2) Other liquid debts have increased significantly.

The balance of other current interest rates at the end of the period is the gross margin involved in the company’s sale of apparel to franchisees. It is based on the difference between operating income and operating costs based on the franchise’s apparel and its estimated return rate.The analysis of cargo rhythm has substantial significance. At the end of 2019H1, other liquid debts increased by 109%, which was above 100% for four consecutive quarters, indicating that the company’s shipments still maintained rapid growth.

(3) Acceleration of pre-sale accounts.

Customized advance receipts According to the advance notice information, the company’s advance receipts are mainly the advance payment of franchisees. At the end of the meeting, the franchisee submits the order and pays the company 30% of the disposition as the first payment from the date of the order confirmationIn advance, the company generally delivers the goods after receiving the full payment, so an advance invoice is generated.

The company is scheduled to be in February and July every year.

This indicator has certain significance for the franchisee’s income forecast.

After a slight decline in the growth rate of advance receipts in 2018Q3, 2019Q2 rebounded from 2019Q1, and total advance receipts in 2019Q2 increased by 11.


(4) Turnover tension.

Due to the increase in the proportion of direct sales, new store goods and other factors, the inventory turnover days in 2019H1 increased by 107 days to 399 days.

The high-end sports and leisure industry is experiencing high growth, and employee share ownership shows confidence.

(1) High growth of high-end sports and leisure industry: Since the high-speed growth of the sports participating population in 2014, the number of high-end sports and leisure brand stores has been limited, the scale of overseas brands is relatively small, and obvious competition gaps have emerged. High-end sports and leisure brands tend to maintain high growth.

(2) Continue to implement the second phase of employee shareholding plan, showing confidence: the company’s second phase of employee shareholding plan covers less than 900 people, which is higher than the first phase of 600 people, and the average transaction price of the shareholding plan is38.

3 yuan / share, forming a certain safety margin for expectations.

[Investment recommendation]It is estimated that the company’s net profit attributable to the parent in 2019/2020/2021 will be 4 respectively.



68 ppm, previously growing at 40.

36% / 27.

50% / 27.

74%, corresponding to an EPS of 1.



17 yuan / share, corresponding to a P / E of 18.



45. Maintain the “Highly Recommended” rating.

[Risk tips](1) The risk of fluctuations in terminal consumption; (2) The risk of higher company inventory; (3) The risk of the new brand developing less than expected.