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In the first half of the year, the company reduced the number of stores by about 60 companies. The store adjustments were synchronized with the industry. In the first half of the year, about 100 new stores were opened, but the number of stores was reduced by about 60. The main reasons for the closure of the store are the rapid rise in rental prices and the decline in the profitability of franchisees.
The sales of the menswear industry are sluggish, and the negative growth in the number of brand stores is constrained by weak terminal consumption, and the continued impact of e-commerce on physical stores and offline store rentals. This year, the overall sales of the menswear industry are poor, and the number of menswear brand stores has begun to decrease; As early as the fall/winter 13 order meeting, the amount of men's orders will generally decline by more than 10%. This reflects the apparent decline in franchise business confidence.
In the first half of the year, the same-store growth in direct sales stores is still 2-3%
The company's management and control of the direct management system is strong, and 13h1 still achieved a 2-3% same-store growth, compared with 16% in 11 years and 7% in 12 years. Because the franchise system is often unable to withstand the downturn in the market, we infer that the company's franchisees are under greater pressure based on industry conditions. Closing shops should also be based on franchise stores. In Q1, the company achieved a revenue of 4.7%. In Q2, April and May were affected by the weather and sales were poor, but sales in June improved. As a whole, we judge that the company can still realize positive growth in revenue.
The e-commerce business has achieved nearly 50 million revenues in half a year. The company's new factory in Henan guarantees its self-production ratio. The e-commerce business realized revenue of nearly 50 million in the first half of the year, 90% of which was the Jiumuwang brand, and Greemont was still in the exploratory stage. The company is building a new factory in Henan and plans to invest 600 million to build it within 3 years. This is to ensure that there is a 50-60% self-producing ratio. Amortization has been in progress since 14 years.
Earnings Forecast and Valuation We have been optimistic about the company's outstanding corporate governance structure. However, the recovery of the menswear industry has to wait at least until the first half of 14 years. Therefore, the current fundamentals of the company have not been significantly improved. It is expected that the company's eps will be 1.1 yuan in 13 years, with a growth rate of -5% (a total profit growth of nearly 10%). However, since the 13-year valuation has reached 10 times, the long-term investment value is obvious and maintains a "buy" rating.