Biyin Lefen (002832): Better-than-expected profit growth, optimized asset quality, optimized cash flow, and maintained “buy”

In the first three quarters of 2019, net profit attributable to mothers increased by 51.

1%, the growth rate exceeded expectations for ten consecutive quarters.

1) The company achieved revenue in the first three quarters of 1913.

20,000 yuan, an annual increase of 25.

0%; net profit attributable to mother 3.

10,000 yuan, an increase of 51 in ten years.


The company’s operations have expanded steadily, constantly improved the construction of marketing channels, strengthened publicity and promotion, and its sales revenue continued to grow steadily.

2) The company achieved revenue in Q3 of 19 in a single quarter4.

80,000 yuan, an annual increase of 24.

6%; net profit of scale1.

4 ‰, an increase of 64 in ten years.


Considering that the changes in the yield in the first three quarters have a certain impact, from the perspective of operating profit, the growth of operating profit in the single quarter increased significantly.

7% reached 1.

600 million, a high base in the third quarter of last year (income increased by 45.

7%, net profit increased by 56.

7%), to achieve performance beyond expected growth again, and constantly verify their growth potential and performance trends.

In the third quarter, the gross profit margin was significantly optimized. The scale of receivables and inventory assets was stable, and cash flow growth was good.

1) Optimization of gross profit margin in the income statement.

The company’s single-quarter gross profit margin increased significantly in Q3,19.

7 points to 69.

0%, sales expense ratio increased by 1.

2pct to 24.

4%, the total management and R & D expense ratio increased by 1.

3 points to 10.

5%, leading to a 7.7% increase in net interest rate

0pct to 28.

8%, the optimization of profitability is obvious.

2) Cash flow has grown well.

The company’s inventory in the third quarter reported an increase of 79.47 million yuan to 6 from the intermediate report.

8 million; accounts receivables are healthy in scale, down 32.11 million yuan to 90.58 million yuan.

In terms of cash flow, the net operating cash flow in the three quarterly reports increased annually.

4% reached 1.

6 trillion, of which the net operating cash flow in the single quarter of 19Q3 increased by 54 each year.

8% to 70.08 million yuan, the company’s sales receipts are in good condition.

In the third quarter, channel expansion and store efficiency improvement continued, and product power and brand power continued to be optimized.
1) The sales network exhibition shop expanded steadily.
In terms of offline channels, we expect the company’s main brand to gradually reach 80-100 net value-added stores, and the Venetian brand is expected to have a net increase of 30-40. It is also digging into high-end communities in first- and second-tier cities as potential markets, and further sinking to developmentIn early third- and fourth-tier cities, the long-term store market capacity is expected to reach 1,500 to 2,000.

2) The benign growth in store efficiency has driven performance ahead of expectations.

The company implements the store restructuring plan of “adjusting the location and expanding the area”, gradually intelligentizing and informatizing the existing stores to promote the steady improvement of single store sales. We estimate that the store efficiency increased by about 15% in the first three quarters, a strong internal growth.Speed is at the forefront of the industry.

3) Employee shareholding improves cohesion.

The company actively strengthened employee training and launched two employee shareholding plan incentive programs to continuously increase the coverage of employees and strengthen team cohesion.

The company dug deep into the moat while actively exploring new brands, and the supply chain and brand gradient layout went hand in hand.

1) Issuing convertible bonds to upgrade core competitiveness.

The company intends to raise funds by issuing convertible bonds not exceeding 6.

89 ppm, which is 杭州桑拿 used for investment and marketing network upgrade, supply chain park and R & D center construction.

We believe that the company has accumulated the management team and brand building in place, and on the basis of the current high level of the track, the company has taken advantage of the current situation to optimize its marketing network, strengthen its supply chain management capabilities, and focus on long-term development.

2) The Venice brand initialization spokesperson started a new journey.

In October 19, the Venice Carnival brand officially joined hands with Tian Liang and Ye Yiqian to further strengthen the brand’s one-stop solution to the image of family travel dressing needs.

The company’s performance has grown steadily, with net profit growth exceeding expectations for ten consecutive quarters. International indexes are expected to increase attention and maintain a “buy” rating.

The company’s third quarter performance growth continued to exceed expectations, asset quality and cash flow performed well, and it is optimistic that the company will strengthen its competitive advantage in the future.

According to the Shanghai Securities Journal, the company’s recent division of the FTSE Global Index and the S & P Dow Jones Indices has continued to increase attention.

We maintain our original forecast and expect an EPS of 1 in 19-21.



3 yuan, corresponding to 19/21 PE is 20/15/12 times.

We expect the company’s net profit compound growth rate to exceed 30% in the next three years, which is the target of solid growth that is scarce in the sector. It maintains its 30-year PE target forecast in 19 and corresponds to a target price of 39.

9 yuan, maintain “Buy” rating!