Semir Apparel Is In Line With Public Consumption Performance.

In the past year, because of the price and style of Semir clothing in line with the needs of the mass market, Semir clothing sales have been greatly increased, and the prospect is wonderful.

Event: Semir March 29, 2016

The annual report of 2015 is released. The company's performance is beautiful, and its income and net profit are obviously ahead of the industry level.

In 2015, the company realized revenue of 9 billion 450 million yuan, an increase of 16.1% compared with the same period last year. The net profit of shareholders belonging to the listed company was 1 billion 350 million yuan, an increase of 23.5% compared with the same period last year. Net profit after deducting non profits was 1 billion 270 million yuan, an increase of 25.3%.

Comment:

Two or three line market, mass leisure wear centralization and fashion, Semir casual wear meets consumer demand: public

In the market, local brand competition is fragmented, and international brands can never find the right operation mode.

In the context of consumption upgrading, consumers at lower end are more fashionable and more cost-effective than before.

Fashion and high performance price ratio need quick response supply chain and large-scale production to support.

Semir has been deep tillage in related fields for many years, and has relevant competitive power, benefiting from such consumption upgrading trend.

Children's consumption is branded and the market leader is consolidated: the parents of 80's tend to "give their children the best". This kind of consumption concept promotes the brand of children's clothing consumption.

The children's wear industry has shown the characteristics of small businesses, such as many brands, low sales and high profits.

Barbara started early and ploughed in the market for many years, leading products, wide distribution channels, and brand maturity.

Barbara is the leading brand of children's clothing industry far ahead of its competitors. It coincides with the opportunity to upgrade children's clothing consumption and will maintain a rapid growth momentum.

The R & D ratio has been further enhanced, and the competitive advantage of products is obvious: product R & D capability is the core competitiveness of light assets clothing enterprises. In the past 5 years, the R & D investment of the company has accumulated as high as 407 million yuan, and its growth in the past three years has increased to 22%, 56% and 30.26%.

The company can integrate international design resources and local teams to provide products with both international design standards and domestic market characteristics for the market.

The gap between R & D level and international standard has narrowed, which is more than that of industry competitors.

The electricity supplier sector is strong, and online sales rank first: the company set up a wholly owned subsidiary in Hangzhou, located outside the Shanghai head office, responsible for brand online development and sales.

This decentralization practice is beneficial to traditional companies to build an independent business enterprise culture, enhance the pioneering power of the electronic business team in the business, and ultimately better promote online sales performance.

On 2015 double eleven, Semir sales accounted for 396 million, and millet and HUAWEI and other enterprises ranked seventeenth in the whole network. Balbala brand is the champion of children's wear and the whole maternal and infant industry.

In 2015, the company's e-commerce business grew rapidly, with an increase of 83.67% to 1 billion 800 million yuan.

Forecast and rating: we expect the company's diluted earnings per share for 16-18 years to be 0.60 yuan, 0.78 yuan and 0.96 yuan respectively.

The company's current business is in line with the trend of consumer upgrading, leading to product R & D supply chain management, strong electricity supplier and a new round of development.

Maintain the company as a "buy" rating.

Risk factors: the consumer market is weak, and the specific expansion plan is not appropriate.