Biyin Lefen (002832) 2018 Annual Report & 19th Quarterly Report Comments: Performance remains bright, high growth, both internal and external, strengthening brand advantages

Biyin Lefen (002832) 2018 Annual Report & 19th Quarterly Report Comments: Performance remains bright, high growth, both internal and external, strengthening brand advantages

18 outstanding performance, double-accelerated revenue performance, Q1 19 maintained a high growth rate in 2018 the company achieved revenue 14.

80,000 yuan, an increase of 40.

0%, achieve performance 2.

9 trillion, the same increase of 62.

2%, and plans to pay 10 yuan for 5 yuan.

18Q4 / 19Q1 revenue increased by 40.


4%, performance increased by 100.



The higher revenue growth part of the revenue is affected by the benefits of emerging benefits, after excluding the impact 18 years and 19Q1 company’s pre-tax profit growth still reached 48% / 33%.

The construction of the terminal system was vigorously promoted, and the new brand aimed at the resort tourism blue ocean company to continue to increase the channel layout. At the end of the last 18 years, it had a total of 764 terminal stores, an increase of 112 from the previous year, of which 365 were direct-operated stores, a net increase of 71, and franchise stores.399 companies, with a net increase of 41 companies, the proportion of direct sales reached a new high, and the company actively penetrated into relatively low-tier cities. The weaker regions such as Northwest China had relatively high revenue growth in recent years.

At the same time as the expansion of the store, the company actively implemented a relocation plan to expand the area, and the store efficiency also improved significantly.

In the second half of 2018, a new Venice brand with the theme of vacation tourism was launched. Based on the reorganization of the “Fashion + Function” series, the scene segmentation category was expanded. It is expected that the expansion of store expansion will be accelerated in 19 years, and it is expected to become a new growth point for the company’s revenue.
Profitability maintained an upward trend. The expansion of stores led to an increase in the company’s 夜来香体验网 gross profit margin for 63 years.

3%, a decline of 2 per year.

1pct, mainly due to the company’s active layout of the new value of the unit price of the new Venice brand.

19Q1 increased by 0.

7pct; the overall cost rate during the 18-year period has dropped by 3.

3pct to 39.

6%, the sales and management expense ratios fell 2 under the effect of the rapid growth of revenue2.


8 points.

In terms of operations, the company’s inventory turnover days increased by 28 in 18 and 19Q1.

4 days and 70.

On the 0th day, the scale of store openings has expanded rapidly, and the new brand layout has also increased stocking.

The company’s cash flow is still healthy, with operating cash flows of 18 and 19Q1 of 35.

03% and 248%.

The barriers to competition for major brands continue to deepen, and the expansion of new brands brings long-term interest and maintains a “buy.”
Looking forward to 19 years, the company’s product end will continue to increase new product research and development based on the “three highs and one new” foundation, laying the foundation for the company’s brand strength; the channel end is expected to continue to achieve steady growth through same-store value-added + new stores, and through further strengthening of the member management systemAnd terminal service capabilities, effectively enhancing customers’ efforts to promote the repurchase rate and associated rate.

At the same time, the company’s new brand, Venice, will accelerate its promotion to the market, differentiate its products and position it closer to the people, which is expected to become a new driving force for the company’s high growth.

Expected EPS2 in 19/20/21.



95 yuan, corresponding to PE21 / 16/12 times, maintain “Buy” rating.

Risk warning: New brand effect is less than expected, store opening speed is expected, inventory impairment risk