Baby-friendly room (603214): Channels expand steadily and gross margins continue to rise

Baby-friendly room (603214): Channels expand steadily and gross margins continue to rise

The company released its 2018 annual report, which reported an operating income of 21%.

35 ppm, an increase of 18 years.

12%; net profit attributable to mother 1.

20 ppm, an increase of 28 in ten years.

23%; net profit attributable to mothers excluding non-recurring gains and losses1.

30,000 yuan, an increase of 19 in ten years.


Basic benefits 1.

28 yuan, it is planned to distribute a cash dividend of 3 for every 10 shares.

60 yuan (including tax).

  Opinion: Landed in A-shares in 2018, and sales channels expanded steadily.

The company is mainly engaged in the sale of mother and baby products 四川耍耍网 and related services. It has direct sales stores, APP, WeChat, B2C and other channels. The stores are mainly located in Shanghai, Jiangsu, Fujian and other economically developed provinces and cities.

The company landed on A shares in 2018 and raised funds4.

1.2 billion for marketing network construction.

Reported that the first-tier company’s various channels have steadily expanded: (1) Directly operated stores in areas with encrypted layout advantages, with a net increase of 34 stores in 2018, a total of 223, and store sales revenue of 18.

870,000 yuan, an increase of 14 in ten years.

97%, sales accounted for 88.

36%; (2) Optimize and integrate online e-commerce platforms, upgrade services such as APP mall, WeChat public account, and achieve 0 sales income online.

45 ppm, an increase of 138 in ten years.


(3) Wholesale business income reaches zero.

69 ppm, an increase of 304 in ten years.


  Commodity structure optimization + supply chain optimization + private brand guarantees that gross profit margins continue to increase.

The company’s gross profit margin reached 28 in 2018.

77%, an increase of 0 from the previous year.

36 points.

(1) Continue to optimize the product structure, actively introduce best-selling products, and eliminate outdated old products.

Actively optimize the product supply chain, increase direct supply brands, introduce nearly 100 new brands, and over 30,000 new product SKUs.

(2) The self-built warehousing and logistics center has mature operations, and its warehousing and distribution capabilities have been further improved.

The investment volume increased by 23% each year, and the consumption rate of goods decreased by 58%.

(3) Breakthroughs have been made in the research and development of private brands, and the proportion of sales has increased year by year.

  Sales revenue reached 1.

78 ppm, an increase of 28 in ten years.

99%, sales accounted for 8.


  The adjustment of organizational structure promotes the improvement of management efficiency.

The company adjusted the overall structure of operations, set up a new operation headquarters, integrated industry resources across the country, and built operational processes and systems to provide protection for the overall store business expansion.Administrative expenses in 2018 2.

96%, a decrease of 0 every year.

55 points; sales expense ratio increased due to continued expansion of channels1.

23pct, reaching 18.

twenty two%.

  Investment suggestion: It is expected that the company will realize net profit attributable to mothers in 2019-2021.

4.6 billion yuan, 1.

7.4 billion, 2.

1.1 billion, EPS is 1.

46 yuan, 1.

74 yuan, 2.

11 yuan, corresponding to the current expected PE of 29 times, 25 times and 20 times, respectively, given a “buy” rating.

  Risk 杭州夜生活网 Warning: Consumption growth is declining; market competition is intensifying; exhibit stores are less than expected.


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