Semir Apparel (002563): Core brand competitiveness continues to improve governance and incentives improve positive long-term development

Semir Apparel (002563): Core brand competitiveness continues to improve governance and incentives improve positive long-term development

The core point of view was affected by the consolidation of the French Kidiliz in 19 years and the high base last year. It is expected that the company ‘s profit growth will improve compared to 18 years, but we do n’t think it ‘s necessary to be too pessimistic about the temporary growth rate this year.The thick profit is expected to offset some of the impact of Kidiliz’s reduction in consolidation. It will continue to transform into the absolute advantage of multi-brand reorganization of children’s wear in the medium and long term. Online businesses benefit from the rapid brand heading trend of large platforms.With the continuous emergence and the maturity of e-commerce supporting resources, overlap with Kidiliz’s adjustment to gradually turn losses, we expect that the company’s profit growth rate will begin to pick up from 2020.

In 18 years, the company completed the inheritance from the family business to the professional manager team, and successively introduced equity incentives and the first phase of the employee stock ownership plan. General manager Xu Bo and e-commerce general manager Shao Feichun passed a total of 8.06 million shares of major shareholders to manage the company.The increased holdings of layers and backbones effectively realized the combination of core employees and the interests of the company. We believe that the follow-up company’s allocation of incentives is forecast to continue and the governance mechanism will be further improved. Considering the current level of change and the company’s potential to continue to grow in the future, it is expected that the major shareholdersPossible recognition of family reductions in the short term.

In recent 南京桑拿网 years, the competitiveness of the company’s brands has continued to strengthen.

The children’s clothing business is gradually stable in China. The core brand Barabara continues to increase its market share and continues to be the first-mover advantage in the future. It is committed to maintaining rapid growth. The multi-brand echelon of children’s clothing is gradually taking shape. The retail scale of Macalore and mini balabala is rapidly increasing.北美第一大童装 The Children’s Place、并购的Kidiliz 旗下catimini 与absoba 以及童装cocotree 开始在国内稳步扩张,未来与更多品牌、品类合作以及这些新品牌的冒出也将是森马童装板块的重要看点.
The reorganization of the brand for adult clothing business transformation, positioning more prominent quality, affinity and cost-effectiveness, combined with the early rapid anti-model and the optimization and expansion of shopping mall channels, in the future, single store revenue and channels will promote steady growth.

Financial Forecast and Investment Recommendations We maintain zero earnings for the company in 2019-2021.

70 yuan, 0.

82 yuan and 0.

The 95 yuan profit forecast maintains the company’s 21x PE in 2019, corresponding to a target price of 14.

70 yuan, maintaining the company’s “Buy” rating.

The company’s operating reform has begun to release positive performance in 18 years, and in 19 years it is expected to continue the rapid growth of the main business of adult wear and children’s wear beyond the industry.

Risks indicate the impact of the continued economic slowdown on clothing terminal retail and the risk of traffic differentiation on e-commerce platforms.