Zhou Dasheng (002867): Quickly adjust stores and increase weak demand, drag current performance

Zhou Dasheng (002867): Quickly adjust stores and increase weak demand, drag current performance

Event description In the first three quarters of 2019, the company achieved operating income of 38.

10 ppm, a ten-year increase of 7.

59%, attributable net profit is 7.

27 ppm, an increase of 22 in ten years.

31%, attributable non-net profit is 6.

89 ppm, an increase of 21 in ten years.

78%杭州桑拿网, the basic profit income is 1.

01 yuan / share.

In the third quarter of 2019, the company achieved operating income14.

21 ppm, an increase of 0 in ten years.

22%, attributable net profit is 2.

52 ppm, a ten-year increase4.

32%, attributable non-net profit is 2.

46 ppm, a six-year increase of 6.


Incident review The company still maintains a rapid pace of store expansion, and weak terminal demand has widened the gap in revenue growth.

From January to September 2019, the company opened 618 new stores and a net increase of 412 stores, including 599 new franchise stores, a net increase of 425, 19 new self-operated stores, a net decrease of 13 and the number of stores at the end of the reporting period reached3787, including 3498 franchised stores and 289 self-operated stores. The number of stores reached the number one in the industry. The overall number of stores opened was faster than the 601 new stores opened last year.At least it increased, 206 stores closed in the first three quarters, an increase of 71 each year.

In the first three quarters of 2019, operating income increased by 7 per year.

59%, of which Q1 / Q2 / Q3 in 2019 increased by 17 respectively.

04%, 8.

92% and 0.

22%, of which the offline self-operated business revenue in the third and third quarters dropped by 13 year-on-year.

25%, the number of franchise business decreased by 1.

66%, online self-operated business grows by 53 per year.


On the whole, terminal demand is severely weak. We estimate that it will increase due to the rise in the central price of gold. Gold jewelry sales will be suppressed, and additional consumer demand may be weak. Residents will become more cautious in diamond jewelry consumption.

The business structure was optimized, the operating management efficiency was improved, and the difference between the gross profit margin and the period expense ratio was extended.

The company ‘s gross profit margin for the third quarter alone increased temporarily to zero.

89 up to 35.

14%, or mainly due to the increase in the proportion of franchise business, while the company’s period expense ratio increased significantly1.

52 units, of which the sales expense ratio decreases by 0 every time.

For 46 averages, the management expense ratio decreased by 0.

With 23 per share, the financial expense ratio decreased by 0.

83 units, the difference between gross profit margin and period expense ratio increased by 2.

For 41 mergers, the company ‘s attributable net interest rate in the third and third quarters increased by zero.

7 single, corresponding to an increase of 4 attributable net profit per year.


Investment suggestion: We are optimistic that the company will actively expand the extension store and product structure on the basis of the existing low-end market. The market share continues to increase while the profit scale grows steadily.We expect the company’s EPS to be 1 in 2019-2021.

35, 1.

57 and 1.

85 yuan / share, the current corresponding PE is expected to be 13, 11, and 10 times. Maintaining the “Buy” rating risk tip: 1.

Affected by the economy, terminal consumption has further expanded and declined; 2.

The company’s progress in expanding its stores is relatively slow.