Semir: Casual Wear And Children's Wear Are Two Days Of Ice And Fire.

< p > > a href= "http://sjfzxm.com/news/index_f.asp" > Semir < /a > announced the 2013 China Daily, operating income increased by 8.5% to 2 billion 725 million yuan over the same period, and net profit increased 14.4% to 284 million yuan over the same period. Net profit after deducting non profit increased 5.68%, which is in line with the expectation.

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< p > casual wear and children's clothing ice and fire double growth, almost all contributed by children's wear, driving 2Q13 revenue growth to double digits, an increase of 11% over the same period last year.

Children's clothing has recovered to a relatively healthy growth, the income increased by 23.2% to 895 million yuan over the same period, the proportion of total income increased by 5 percentage points to 33% from 28% in 2011, and gross profit margin increased 1.64 percentage points to 41.09% over the same period.

Casual wear is still weak, still in the process of inventory, revenue grew 2.56% to 1 billion 803 million yuan, gross profit margin dropped 4.63 percentage points to 32.67%.

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< p > cost control is effective.

The company has made efforts to adjust the channel structure and close some inefficient stores to enhance operational efficiency.

The cost of sales was reduced by 5.49% compared with the same period last year, and wages and rental fees rose only slightly.

Management fees increased by 11.13% over the same period last year, mainly from the increase in R & D costs, in order to match the design and development expenses of the company's strategy of increasing fashion styles.

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< p > the return of the franchisee is good, leading to continuous improvement in operating cash flow and accounts receivable.

The balance of accounts receivable continued to decrease by 86 million yuan at the end of the first quarter, while operating cash flow maintained a net inflow for 4 consecutive quarters.

Although the inventory balance increased slightly by 150 million yuan compared with the end of the first quarter, the turnover days of inventory still decreased 38 days to 112 days, and the improvement was obvious.

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< p > development trend < /p >

< p > inventory management and cost control have been effective. Inventory is no longer the main problem that perplexes the company's performance.

However, consumption of a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" is still relatively weak, especially in the youth casual wear industry, which accounts for 2/3 of the company's income. The competition is most intense, and it is difficult to improve substantially in the second half of the year by the two-way extrusion of international brands and online shopping.

Children's clothing is relatively good.

Driven by double-digit growth in children's clothing, the company's annual performance in 2013 is expected to achieve high unit growth.

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< p > the company's brand acquisition plan is accelerating. In addition to the already announced acquisition of GXG and cooperation with Italy children's clothing company Miniconf, it is expected that the men's clothing brand in Europe and South Korea will continue to be introduced in the first half of next year, and the multi brand and multi-channel strategy will be fully implemented.

Considering the limited cash supply of the company and the limited development of the main brand, this strategy is reasonable, and also accords with the development law of the company's < a target= "_blank" href= "//www.sjfzxm.com/" > brand clothing > /a. However, besides the relatively strong growth rate of GXG, the effect of the other overseas brands should be observed.

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< p > earnings forecast adjusted to maintain earnings forecasts unchanged, 2013/14 earnings per share were 1.22 yuan /1.43 yuan (not included in the acquisition of GXG performance thickening), respectively, an increase of 7.5% and 17.2% over the same period.

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< p > valuations and recommended current stock prices correspond to 2013/14 times earnings ratio of 17.6/15.0 times.

Children's clothing has resumed healthy growth, and multi brand strategy has been advancing at a high speed, but the main brands of casual wear are still under pressure.

Maintain prudent recommendations.

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