Disu Fashion (603587) Semi-annual Report Review: Unique design and strong customer stickiness lead the growth of mid-to-high end women’s wear

Disu Fashion (603587) Semi-annual Report Review: Unique design and strong customer stickiness lead the growth of mid-to-high end women’s wear

Event: The number of reports, the company achieved operating income11.

11 ppm, an increase of 14 in ten years.

42%; net profit attributable to shareholders of listed companies2.

96 ppm, an increase of 21 in ten 南宁桑拿 years.

89%.

Among them, the second quarter operating income growth rate of 15.

41%, deducting non-attributed net profit growth rate of 35.

7%, revenue and profit in the second quarter have accelerated in the first quarter.

The company’s model of autonomously incubating brands has initially established a reasonable brand matrix, with sufficient endogenous growth momentum.

The company currently has four brands through independent establishment, covering multiple ages, price segments and covering the field of men’s clothing, and future development is expected.

In the first half of the year, the main brand DAZZLE achieved revenue6.

42 ppm, an increase of 13 in ten years.

85%.

The second-largest brand, d’zzit, is younger than the main brand positioning and achieved revenue in the first half of the year3.

$ 7.1 billion, an increase of 18 per year.

27%.

The proportion of high-end brands DIAMOND DAZZLE and men’s RAZZLE is still low, and the development is stable.

The retail reform has achieved remarkable results, with significant improvements in retail capabilities and store efficiency.

The company’s 3C training program and the adjustment of shopping guide fees in the first half of the year have significantly improved the efficiency through channels.

7%, distributors also use direct management.

The company closed 12 stores in the first half of the year, and its revenue growth was mainly due to the same store growth contribution.

Looking forward to the future, the company’s store opening progress in the second half of the year, and a gradual channel is expected to have a net digital growth.

In the same store, under the retail reform and store renovation, the retail situation remains optimistic, and the efficiency of single stores will maintain a double-digit conversion.

Unique design, VIP contribution rate is high, and the company develops steadily.

The women’s clothing industry is highly competitive, and the most important competitiveness of women’s clothing brands is the design ability.

The brand established by the company brand has a stylish and unique design and has cultivated many loyal users.

In the first half of the year, the company’s VIP users were about 410,000, and its sales accounted for over 70%. Maintaining a certain percentage of VIP sales will help the company achieve steady growth during the slow development of the industry.

The company’s design team is stable and has a strong ability to grasp the trend. In the future, product design will pay more attention to younger products.

In terms of VIP, the company accurately markets VIP according to brand characteristics.

Unique design and healthy proportion of VIP consumption will help the company cross the cycle.

Investment suggestion: As a leader in the domestic high-end women’s wear industry, the company has a strong 南京桑拿网 brand, unique design and long-term development momentum.

The company is expected to achieve operating income in 2019-2021.

79, 26.

73, 30.

05 ppm; net profit attributable to mothers is 6.

48, 7.

14, 8.

09 million yuan, corresponding to PE were 13.48X, 12.

25X, 10.

80X.

Covered for the first time and given a “Recommended” rating.

Risk reminders: 1. The new brand cultivation period is too long; 2. Domestic demand continues to be sluggish.