The Third Quarter Of Women'S Clothing Industry Has Improved Its Profits, And The Annual Performance Forecast Exceeded Expectations.

Three quarterly report growth of 71.7%, investment income and government subsidies to contribute the main performance

The company realized 1~9 revenue of 826 million yuan, a year-on-year decrease of 1.3%, a net profit of 82 million 440 thousand yuan, an increase of 71.7% over the same period last year, a 214% increase in net profit, and a difference in performance and growth rate. The difference between the growth rate and the net income was mainly about the investment income and the extra business income. The investment income increased by 2200 yuan to 61 million yuan, including 45 million of the share investment income and 15 million of the financial income. The extra business income increased by 25 million yuan compared with that of the previous year. It was mainly government subsidies. Accordingly, it was judged that the 1~9 company's women's clothing business basically broke even.

The company's Q3 revenue grew by 32.2% over the same period last year, and the growth rate of the single quarter was the first to become positive in the past 3 years. Besides the beginning of the medical and American subsidiary, the main business of women's clothing benefited from the optimization of terminal channels, and the income also increased. Q3's net profit reached about 44000000, and the year-on-year and annulus ratio rose significantly. The main business profit of women's clothing was expected to be around 10 million yuan, the profit situation improved, and the three item rate of Q3 decreased by 4.2pct compared with the same period last year.

The company expects that the net profit change interval of 16 years will be 1.49~1.71 billion yuan (up by 100%~130% over the same period), and the performance forecast is beyond expectation. Besides the improvement of the main business of women's clothing industry and the factors of table, it is also an important factor for the company to increase its profitability.

Participation in the underlying business is in good shape, followed by a focus on industrial resource integration.

The company has established a new strategic layout with advanced women's clothing + medical beauty + baby + cosmetics as its core. This year, it bought two big medical beauty brands, Milan Bai Yu and Jing Yi Mei, and shares 30% stake in Korea dream group (DMG), and strategically build three-dimensional medical beauty service.

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At the same time, the main share holders are in good shape and the investment income has increased. Among them, Korea mask company L&P (10% stake) relies on China.

The force continued to grow rapidly, and the 16 year goal of akakon achieved losses.

The company will focus on the industrial resources and landing progress in the future.

Medical beauty industry scarcity target, maintain buy rating

Based on high-end women's clothing, the company has gradually constructed a strategic layout with the core of "advanced women's clothing + medical beauty + baby + cosmetics". The investment targets have a high market position in their respective fields, and have a broad customer base. By introducing the Korean dominant fashion resources, the continuous development and integration of the follow-up industry chain is worth looking forward to.

The company raised the 16~18 EPS to 0.40/0.49/0.59 yuan (not considering the additional issuance of dilution) and maintained the buying rating.

Risk warning

The consumption environment continued to slump, women's clothing business continued to decline, and the layout of medical beauty was slower than expected.