Nine Herd Wang: Men's Clothing Industry Sales Downturn Operation Slightly Better Than The Industry Level.

< p > the sales of men's wear industry is in the doldrums, and the number of brand stores has started to increase negatively. < /p >

< p > subject to the impact of terminal consumer fatigue and the continuous high impact of electricity suppliers on the rental of physical shops and shops, the overall sales of men's wear industry this year is poor, and the number of men's wear brand stores has begun to decrease. As early as 13 years and autumn and winter ordering sessions, men's clothing orders will generally fall by 10%.

This reflects a sharp decline in confidence in franchisees.

< /p >

< p > the number of stores decreased by about 60 in the first half of 13 years, < /p >

< p > the adjustment of the company's stores is synchronized with the industry, with about 100 new stores opened in the first half of this year, but the total number of stores has decreased by about 60.

The main reasons for closing the store are rents rising too fast and profit margins of franchisees falling.

< /p >

< p > in the first half of the year, the growth of the same store in the same store is still 2-3% < /p >

< p > the company has strong control over the direct battalion system. 13H1 still achieves the same store growth of 2-3%, compared with 7% in 16% and 12 in 11 years.

Because the franchising system is often unable to withstand the downturn in the market, we can deduce that the franchisee is facing greater pressure according to the industry situation.

Q1 quarter, the company achieved 4.7% revenue, Q2 quarter, April and May were affected by the weather, sales were poor, but sales in June turned better.

Overall, we can see that the company can still achieve positive growth in revenue.

< /p >

< p > electricity business half a year to achieve nearly 50 million revenue, the company set up a new factory in Henan to ensure that the proportion of self production < /p >

< p > electricity business has achieved nearly 50 million revenue in the first half of the year, 90% is the brand of GREE, and PAM is still in the exploratory stage.

The company set up a new factory in Henan with a planned investment of 600 million and built in 3 years to ensure that 50-60% has its own production ratio.

Amortization since 14.

< /p >

< p > profit forecast and valuation < /p >

< p > we have been optimistic about the excellent governance structure of the company, but the recovery of men's clothing industry will have to wait until the first half of 14 years.

It is estimated that the company's EPS will be 1.1 yuan in the 13 year, the growth rate will be -5% (the total profit growth rate is nearly 10%), but because the valuation of the 13 years has reached 10 times, the long-term investment value is obvious, and the "buy" rating should be maintained.

< /p >