First Shanghai: China'S Trend Of Medium And Long Term Brand Self Shop Is Better.

< p > recently, the first Shanghai announced that it would upgrade China's trend rating to hold, and set the target price of 13 years to HK $1.35, an increase of 10.9%.

First, Shanghai believes that China has a better future in the development of medium and long term brand self operated stores, but its profit reflects demand. At the same time, China's current assets and liabilities are relatively good, with zero liabilities in the 13 years, and 4 billion 660 million yuan in cash and equivalents, while the current net assets valuation level is only 0.8 times. The current average level of domestic sports partners is 1.7 times, and the discount rate is relatively large.

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< p > < strong > net profit decreased by 5.4% to 91 million 866 thousand yuan, < /strong > < /p >.

< p > the performance of the company was slightly lower than expected during the period, of which the income decreased by 32.4% to 563 million yuan compared with the previous year, and the operating profit dropped by 39% to 32 million 69 thousand yuan, while the net profit fell 5.4% to 91 million 866 thousand yuan, and the share profit was 1.67 yuan, with a dividend payment of 1.18 cents per share, and the dividend payout rate remained at 70.7%.

During the period, the sales of all brands inside and outside the company were all down, but sales in China dropped by 36.2% compared with the same period last year, accounting for a further decline to 69.6%. < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > the price of clothing products fell by 31.6% and 43.1% respectively during the same period, and sales in Japan were also down 21.6% from the depreciation of the yen and the return in the first half.

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< p > < strong > accelerating retail pformation, the new growth point can be < /strong > /p >

< p > the company has 611 closed stores in the period, basically three or four distributors with poor profitability in the three or four line area. By the end of June, the company has 1398 stores in the country.

Due to the fact that 52% of the company's stores are operated by a small fund distributor, it is estimated that the company's ongoing channel reform will further terminate cooperation with some of the distributors who are not performing well at that level, and adjust to open shop with a better distributor (including a large proportion of new products), thereby promoting endogenous growth in the same store.

During the period, the company's retail business revenue has reached 50 million yuan, an increase of 85.2% over the same period. The proportion of sales in KAPPA China has increased to 13.1%, while the number of self operated stores is only 97 in the end of June. The sales situation is good. It is expected that in the continuous pformation of the company, the development of retail business is in line with expectations. Combined with the long history of the company's brand in China, the business will become a new growth point of the group.

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