Peacebird (603877) Annual Report Commentary Report: Revenue Pressures TOC Operations to Improve Efficiency

The company’s 2018 revenue / attribution net profit also increased by 7.

8% / 27.

5%, basically in line with expectations.

The company’s 2018 operating income / attributable net profit were 77.


7 trillion, the same increase of 7.

8% / 27.


Among them, the Q4 company’s operating income / attributable net profit was 28.


90,000 yuan, at least -0.

4% / + 2.


During the same period, gross profit margin rose by 0.

5pct to 53.

4%, sales / management increased by 0.

3pct / 0.

1 point to 34.

6% / 7.

7%, the comprehensive cost net interest rate rose by 0.

9 points to 7.


  PB men’s clothing and Rakucho performed better, growing faster online than offline.

By brand, PB women’s revenue was 26.

800 million (-0.

4%), with 1,551 stores at the end of the period, a net opening of 25; PB men’s clothing revenue of 28.

300 million (+12.

3%). At the end of the period, it had 1,222 stores and a net opening of 96.

Rakucho Women’s Revenue 10.

100 million (+6.

4%). At the end of the period, it had 616 stores and a net opening of 25.

Mini peace revenue 8.

600 million (+21.

9%). At the end of the period, it had 867 stores and a net opening of 106.

PB men’s clothing and Rakucho performed better. Men’s clothing terminal sales were good under TOC’s promotion. While the Rakuchi brand’s brand positioning and quality improvement, we judge that the same store has improved.

By channel, the company’s online 杭州夜网论坛 / offline revenue increased by 11 respectively.

6% / 6.

8% to 20.0/56.

0 billion, online growth is higher than offline; direct sales / franchise revenue growth were 14 respectively.

4% / 1.

0%, direct same-store growth rate of nearly 5%.

  The TOC model promotes inventory optimization and stable capital turnover.

In 2018, the company’s entire brand promoted the TOC management model and promoted the efficiency of the entire industry chain: the summer 2018 product sales rate increased by 6%, and the corresponding company’s inventory turnover days were 183 days, a slight decrease from the previous year.

Accounts receivable turnover days were 25 days, an increase of 3 days from the previous year.

Net cash flow from operating activities was 8.

53 megabytes, with a total of 21 megabytes of currency and wealth 武汉夜生活网 management products on account, and the current financial situation is sound.

  Looking ahead to 2019, it is planned to realize revenue / attributable net profit of 88/7 trillion, respectively.

The company will continue to increase retail sales and operating income while effectively reducing product costs and operating expenses. It plans to achieve operating income of 8.8 billion and net profit of 700 million.

In order to achieve this goal, it will strengthen the management of goods and channels, fully promote new retail practices in cooperation with companies such as Ali and Tencent, and create a multi-brand, omni-channel operation strategy.

  Investment suggestion: As a multi-brand and full-category fashion company, the company has a well-developed brand matrix and a rolling development.

The company’s products have been rejuvenated, the TOC quick response system has been established, and e-commerce and Yuncang platforms have been constructed to promote performance growth.

The net profit forecast for 2019/2020/2021 is expected to be 6.



10,000 yuan, the current price of 20.

3 yuan, corresponding to 14 times PE in 2019, maintaining the “overweight” level.

  Risk warning: terminal sales expansion; store expansion is less than expected.