Langzi (002612): Women’s clothing and medical beauty maintain high growth Akabang’s performance growth drags down overall performance


Langzi (002612): Women’s clothing and medical beauty maintain high growth Akabang’s performance growth drags down overall performance

The main business of women’s wear recovered in 17H2 after many years of adjustment. In 18 years, revenue increased by 24% under low base and endogenous drive. At the same time, inefficient alternative stores closed down profit levels, and smart retail layout improved digitalization.

The medical beauty business has been steadily advancing, and the acquisition of “High Life” has further improved the medical beauty layout.

New asset management companies increase revenue flexibility.

Akabang ‘s performance was worse than expected, dragging down overall performance.

At present, the pattern of the “pan-fashion Internet ecosystem” has basically taken shape, women’s clothing has grown steadily, and the field of medical beauty and cosmetics has broad prospects for development and high synergy effects.

The current market value is 4.1 billion, corresponding to 19PE16X. It is estimated that it is not high. The short-term market will be mainly driven by funds, and it is expected to gradually continue to be based on the progress of the broader market.Open up new development space for the company.

Give a “careful recommendation” rating.

The women’s clothing business resumed, and the children’s clothing business dragged down 18-year performance.

The company announced its 2018 annual report. With the continuous growth of the women’s clothing business, the consolidation of the medical beauty business, and the addition of the Asian-Asian asset management business, the company’s revenue in 18 years / net profit attributable to mothers was 26.


1 billion, an increase of 13 each year.

10% / 12.

20%, basic profit returns 0.

53 yuan; the distribution plan is to pay a cash dividend of 1 for every 10 shares.

50 yuan (including tax).

In terms of quarters, affected by the impairment of Akkabang’s goodwill, the net profit attributable to the mother in 18Q4 was 6, respectively.


2.6 billion, down 6 each year.

09% / 69.

76% of the 18 years of high-end women’s self-adjustment was effective, and income maintained a high growth.

1) The company’s continuous improvement in product design innovation, channel optimization, marketing management, and supply chain efficiency.

In terms of products, they are becoming younger, simpler, and more fashionable; in terms of channels, the Internet dividend period is nearing the end, and the offline channels are sinking harder, and the “Little Langzi” and “Rhein” brands are used to quickly lay out the third and fourth lines.In terms of marketing management, rich product styles and collocations broaden product price bands, while comprehensively implementing franchise and self-employed integrated management; supply chain management and effective implementation of supply chain efficiency and hot product tracking strategies to reduceSeasonal product inventory improves supply chain efficiency.

2) Sub-brands: Driven by a low base and endogenous growth, the main brands have achieved high revenue growth, but small brands are still in the adjustment period.

18 years of women’s income increased 24.

29% to 13.

80 ppm; of which Langz’s main brand revenues increase by 32 per year.

54% to 9.

6.4 billion, a net increase of 23 stores to 248 compared with the same period last year; Rheinland revenues increase by 24 each year.

25% to 2.

8.7 billion, a net increase of 13 stores from the same period last year to 145; small brands continued to adjust, Zhuo Ke / Marie / Gigaot / FF / DEWL total revenue fell by 15%, and the total number of stores increased by 15 to 112.

3) Channel expansion is in line with expectations, and the structure continues to be optimized: the women’s clothing business had 505 offline stores at the end of 18 years (a net increase of 51); and 6 online sales channels were added.

By model, the number of self-employed companies increased by 62 to 378, and the income increased by 31 each year.

33%, income accounted for 82.

90%; franchise decreased by 5 to 127, and revenue decreased by 1 year-on-year.

33%, income accounted for 17.


Infant and child business: Affected by the international economic environment and the continuing decline in the number of births in Korea, Akabang ‘s income has decreased by 20%.

91% to 6.610,000 yuan; affect the company’s consolidated net profit increased by 23.97 million yuan.

In terms of channels, as of the end of 18 years, there were 999 stores, an increase of 35 earlier.

The domestic infant and child business is still being cultivated and has not been profitable.

At present, the brand has set up 19 self-operated stores, 14 franchised stores and 3 online channels in China.

Medical beauty business: The multi-region and multi-level “1 + N” industry layout is becoming more and more complete.

Since April of 2016, the company has successively acquired 30% of the shares of Korea Dream Group, and in September of 2016, it has controlled two major domestic high-quality medical beauty brands “Milan Baiyu” and “Jingfu Medical Beauty” and its six medical companies.Cosmetology Agency, obtained Guanghua Jingfu 49 in September, 17

4% and Jincheng Crystal Skin 49.

4% equity, and acquired 24% equity of Xincheng Jingfu on December 31, 2017.

In January 18, the company’s wholly-owned subsidiary Langzi Medical contributed capital 2.

6.7 billion yuan completed the acquisition of 100% equity in Xi’an “High Life”, creating a multi-regional and multi-level “1 + N” model industrial layout, and the map of medical beauty is becoming increasingly perfect.

In 18 years, the medical beauty sector achieved operating income4.

80 ppm, an increase of 87 in ten years.

26%; contributed a net profit of 27.52 million yuan, a year-on-year increase of 43.


Look at Milan Baiyu’s revenue by brand2.

72 ppm, an increase of 41 in ten years.

69%, the number of stores is 2; Jingfu Medical Beauty has an income of 91.61 million yuan, an increase of 44% over the years, the number of stores is 7;

1.6 billion, 1 store.

Considering that the “economy economy” is gradually heating up, China is expected to become the second largest medical cosmetic market in the world, and the future development of this business is expected.

L & P contributed a profit of RMB 26.22 million after conversion based on its shareholding ratio, a decrease of 8 from last year.


Affected by the downturn in travel to South Korea, the company achieved net profit in 18 years.

880,000 yuan, unchanged from the same period last year.

The asset management business developed smoothly, increasing performance flexibility.

Hana Asset Management started in June 2017, making strategic or financial investments in high-quality targets in the pan-fashion related industries to continue to advance and consolidate the company’s “pan-fashion industry interconnected ecosystem” strategy, and to dig deeper into the more synergisticIndustrial resources in the field of fashion consumption.

18 years of contribution revenue1.

0.5 billion, down 27 a year.

08%; calculated by the shareholding ratio, contributed a profit of 9,271 million, an increase of 22 in the future.


Affected by the increase in the gross profit margin of women’s clothing, infants, and medical beauty, and the contribution of the new business of Asiana Asset Management, the company’s comprehensive gross profit margin increased by 0 in 18 years.

6pct; but affected by the increase in the cost of short-term financing bonds and corporate bonds, the expense ratio increased by 6.

52 points; comprehensive consideration of investment income and the impact of asset impairment gains and losses, the net profit rate fell by 0.

52pct to 7.


1) Increase in gross profit margin: Comprehensive gross profit margin increased 深圳SPA会所 by 0 in 18 years.

6 points to 57.


Among them, the women’s clothing business gross margin fell2.

88PCT to 57.

72%, the gross profit margin of the infant business increased by 4.32pct to 50.

32%, Yimei gross margin increased by 3.

27 points to 59.

90%, the new asset management business contributed 1.

0.5 billion gross profit.

2) The expense ratio increased significantly due to the increase in interest expenses: the expense ratio increased during the reporting period by 6.

52 points to 57.

07%; of which sales expense ratio increased by 3.

12pct to 35.

94%; management expense ratio decreased by 0.

2 points to 14.

36%; financial expense ratio increased due to increased loans and the issuance of short-term financing bonds3.

6 points to 6.


3) The total amount of investment income for 18重庆耍耍网 years is 3.

10,000 yuan, an increase of 1 each year.

7.8 billion.

Among them, the budget investment income receivable reached 2.

170,000 yuan, becoming the main source of increase in investment income.

4) Increase in asset impairment provision: As a result of the impairment of goodwill on Akabang and the increase in inventory depreciation provisions, the asset impairment amount for 18 years reached 76.68 million yuan, an increase of 9.16 million yuan.

The scale of inventories has increased, and operating cash flows have been significantly reduced each year.

At the end of 18 years, the inventory scale increased by 21 every year.

35% to 9.

5.3 billion, matching the growth rate of income; the expansion of the account receivables scaled down3.

56% to 3.

63 million; Affected by the decrease in cash flow from Hana Asset Management’s operating activities and the increase in operating expenses, the net operating cash flow decreased by 58% to 54.38 million yuan.

Profit forecast and investment grade: The company’s “fashionable Internet ecosystem” pattern has basically taken shape. The women’s clothing business has achieved stable growth through optimization, and inefficient and alternative store closures have improved profitability. The medical aesthetics and cosmetics fields have broad development prospects, and the businessThe synergy is high.
In the future, through the issuance of corporate bonds and Langzi Medical, China and South Korea ‘s consumption upgrade Internet fund will continue to advance, and the ecosystem strategy will gradually improve.

It is expected that EPS for 2019-2021 will be 0.

66, 0.

75, 0.

86 yuan, the current market value of 4.1 billion, corresponding to 19PE16X, it is estimated that it is not high.

Driven by market funds in the short term, it is expected to continue to be based on the development of the broader market; in the medium and long term, the company’s debt issuance is smooth, and the continuous advancement of medical aesthetics and other areas may open up new development space for the company.

The investment rating of “Prudent Recommendation-A”.

Risk Warning: Women’s wear business continues to decrease; lack of operating experience in new areas; new business development is less than expected.