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Zhou Dasheng (002867) quarterly report comments: single Q3 same-store growth rate gradually new store expansion space is still determined

Zhou Dasheng (002867) quarterly report comments: single Q3 same-store growth rate gradually new store expansion space is still determined

Event: In the first three quarters of 2019, the company achieved operating income of 38.

1 billion, a ten-year growth rate of 7.

59%; net profit attributable to mother 7.

2.7 billion, the previous growth rate was 22.

31%; net profit after deducting non-attribution is 6.

89 ppm, a 21-year growth rate.

78%.

Among them, single Q3 company achieved operating income of 14.

21 ppm, with an annual growth rate of 0.

22%; At the same time, the net profit attributable to the mother is 2.

5.2 billion, the previous growth rate was 4.

32%; net profit after deducting non-attribution is 2.

4.6 billion, the previous growth rate was 6.

75%.

There is potential for improvement in offline channel growth, but online growth remains strong.

From January to September 2019, the company achieved operating income of 38.

1 billion, a ten-year growth rate of 7.

59%, of which the growth rate of the franchise is 1 under the self-operated line and the self-operated line.

93%, 40.

82% and 4.

02%.

And in the 2019H1 self-operated line and self-operated line, the revenue growth rate of member channels was 8 respectively.

17%, 34.

71% and 8.

72%.

Affected by economic factors and the external environment of the consumer market, the growth rate of offline channel revenue has extended significantly since Q3, while the growth rate of online channel revenue has accelerated.

We believe 北京桑拿洗浴 that the short-term same-store growth pressure can be attributed to the squeeze on diamond consumption by strong gold consumption. In the medium and long term, same-store growth is expected to gradually recover.

The single Q3 franchise stores still showed a steady expansion trend. The change shows that the expansion space of new stores is relatively certain.

In the first three quarters of 2019, the company opened 618 new stores, a net increase of 412 stores, of which 425 new stores were added, and 13 self-operated stores were closed.

In terms of 2019 single Q3, there were 288 new stores and a net increase of 188.

As of Q3 2019, the number of company stores was 3787, of which 3498 were franchise stores and 289 were self-operated stores.

It can be seen that the company’s new store expansion progress is still steadily advancing, and the expansion logic of increasing penetration in low- and mid-tier cities is still determined.

Profit forecast and investment advice: The company is the leader in mass jewelry consumption. It is positioned in third- and fourth-tier cities with low penetration rates. Channel expansion space is determined. It will gradually benefit from the same store growth recovery.

The company’s EPS for 19-21 is expected to be 1.

36 yuan, 1.

62 yuan and 1.

88 yuan, corresponding PE is 14 respectively.

1x, 11.8 times and 10.

2x, therefore maintain “Buy” rating.

Risk Warning: New Store Expansion Exceeds Expectations, Same Store Growth Exceeds Expectations, Raw Material Price Risk