Biyin Lefen (002832): 19Q4 bright and high-increasing new retail became a surprise during the epidemic

Biyin Lefen (002832): 19Q4 bright and high-increasing new retail became a surprise during the epidemic

Event: The company announced 19 performance reports and revenue increased by 23.

7% to 18.

300 million, net profit attributable to mother increased by 40.

0% to 4.

09 million yuan, specifically to 19Q4, income increased by 20.

5% to 5.

2.0 billion, net profit attributable to mother increased by 13.

From 7% to 98.02 million yuan, taking into account the one-off readjustment of income tax incentives in 18Q4, excluding the impact of income, the profit before tax in 19Q4 increased by 73.

6% to 1.

14 ppm, reflecting the company’s rapid retail growth and continuous improvement in efficiency.

Under the zero environment of the downturn, the momentum of store opening and single store growth remained strong.

In 19 years, the company continued to expand with quality channels, expand the area, adjust the location, and continuously enhance the user experience. Looking at it step by step, it is estimated that the number of main brand stores in Yinerfen will increase by more than 100 on the basis of 18 years (about 730).On the basis of 18 years, the holiday travel brand Venice stores increased by 20-30 nets, which impacted the total number of 50-60 stores. The combined single-store revenue continued to increase (we estimate it at a double-value level), showing sports fashion.The growth vitality of the track segment leader.

Since the outbreak of the epidemic, new retail outlets have been highlighted.

The overall sales growth of the company before the Spring Festival in January 2020 is still strong, and because of the high-end customer base, pre-season shopping habits, and other brands with more men’s and women’s goods on sale 2-3 weeks earlier, the impact of winter clothing on the epidemic is limited.

The offline passenger flow has indeed achieved its goal since February, but new retail sales opportunities have been fully developed, as shown in: 1) VIP online sales: Companies in the past two years have continued their efforts to suspend VIP refresh and add VIPs to the evaluation of front-line sales staffIndicators to ensure a positive interaction with customers. At least 2 months have continued to complete transactions through the circle of friends, mini-programs, and WeChat one-to-one product marketing; 2) VIP resource sharing in malls: offline malls are more willing to share VIP resourcesHead brands jointly conduct online promotion to promote 武汉夜网论坛 transactions; 3) Testing new marketing methods such as live streaming with cargo.

The new retail method has driven the spring product sales represented by the Forbidden City Cultural Series to have a strong momentum, and the discount rate remains at a high level, which supplements the offline sales gap.

Profit forecast and investment grade: The company is still in the active channel expansion stage for 20 years. It is expected that there will be a net increase of more than 100 stores over the Yinlefen brand and a 20-30 increase in the Venetian brand. Considering the impact of the epidemic in 20 years, we expectThe company’s 19/20/21 profit increased by 40% / 25% / 23% to 4.



3 ‰, corresponding to PE 18/14/11 X, continue to be optimistic about the track and long-term growth, maintaining the “buy” level.

Risk warning: terminal retail is cold, exhibit stores are less than expected, same store growth is less than expected