Chao Hongji (002345) Quarterly Report Review 2019: Benefiting from the pick-up in the optional consumer industry, “her economy” business shows improvement

Chao Hongji (002345) Quarterly Report Review 2019: Benefiting from the pick-up in the optional consumer industry, “her economy” business shows improvement

Investment Highlights: The company announced its 18 annual report: the company achieved revenue of 32 in 18 years.

48 ppm, a five-year increase of 5.

2%, net profit attributable to mother 0.

71 ‰, a decrease of 75 per year.

0%, deducting non-net profit 0.

59 trillion, a decrease of 76 a year.


Net operating cash flow for 18 years was 3.

22 ppm, a five-year increase of 5.


Basically in line with our expectations.

18Q4 single quarter income 8.

30 ppm, a ten-year increase4.

3%, net profit attributable to mother -1.

57 trillion, a year-on-year decrease of 398.


The company’s 18-year negative profit growth was mainly due to the provision for impairment of goodwill2.

Due to RMB 0.99 million, excluding goodwill, the company’s net profit attributable to its parent was 2.

800 million, a decrease of 14 every year.


The company’s 19Q1 quarterly report released: The company achieved revenue in 19Q1.

5.7 billion, an increase of 13 in ten years.

6%, net profit attributable to mother 0.

88 ppm, a reduction of 5 per year.

6%, net profit after deduction is 0.

82 ‰, a decrease of 5 per year.


Slightly lower than our forward-looking expectations.

The acceleration of the company’s revenue growth in the first quarter of 19 was mainly due to the improvement of terminal effects. The impact of the profit end of 19Q1 was mainly due to the high base of 18Q1 (18Q1 included about 6 million yuan in other income).

Net operating cash flow1.

14 ppm, a reduction of 3 per year.


The mid-to-high-end fashion consumer goods industry continued to cultivate, creating a light luxury consumer circle.

1) Three major brands are working together, and traditional businesses are growing steadily.

The company has three major brand systems: Chao Acer, VENTI and FION. The group has more than 3.6 million members and focuses on the fashionable female consumption matrix.

Self-employed, franchise, and wholesale businesses have developed together, of which self-employed and franchised businesses have achieved revenues of 26 in 18 years.

1.7 billion and 5.

78 ppm, a 10-year increase2.2% and 18.

9%, maintaining good and stable growth.

FION women’s bag brands have upgraded stores in first- and second-tier cities and actively sink channels in third- and fourth-tier cities, adding new vitality to future performance growth.

2) Continuous expansion of online and offline, significant mutual drainage effect: As of 2019, the company has covered 200 major cities, and has more than 1,200 brand franchise sales channels offline. In 18 years, the brand successfully entered Joy City, IFS, VientianeCity and other domestic top commercial centers, which bring potential enhancement to brand awareness and sales; “Chao Hongji CHJ” brand online shopping platform (self-employed, Tmall,, Vipshop, etc.) opens stores to use offline customer resources, To guide each other online and increase brand awareness.

3) Layout the medical beauty industry, and improve the layout of the “her economy” fashion industry chain.

In 2018, the company completed a 26% equity investment in Siyanli, laid out the aesthetic medical industry, developed a new economic industrial chain for middle-class female consumers, and improved the company’s strategic brand multi-brand operation.

The company has also invested in two major beauty e-commerce platforms, Laramie and Gengmei, constantly looking for high-quality extension integration opportunities, and synergies among various businesses have begun to appear, expanding the lifestyle lifestyle ecosystem.

In 18 years, the net income of the medical beauty industry chain investment was about 0.

440,000 yuan, 19Q1 single quarter realized net investment income of about 0.

0.6 billion.

With European and American, Japanese and Korean scores, the 成都桑拿网 Southeast Asian medical beauty industry is still in its infancy, and has been breaking through the development space, and has the potential to grow through the cycle.

The significant increase in profitability in 18Q4 was mainly due to the enhancement of brand value and product structure.

18 years: The company’s 18-year comprehensive gross profit margin has continued to increase, with a single quarter gross profit margin of 40 in 18Q4.

40%, an increase of 7 per year.

1pct, in terms of expenses, the company’s sales / management / R & D / finance in 18 years have increased by 13.

5% / 37.

3% / 643.

0% / 60.


19Q1: The company’s gross profit margin in 19Q1 remained at 38.

A better level of 7% is mainly due to the continuous improvement of the company’s brand value and the improvement of profitability brought about by product optimization.

With the continuous optimization of the company’s management structure and the strengthening of its cost management and control capabilities, the net profit margin in 19 years is expected to continue to improve.

1Q1 sales / management / R & D / finance increased by 8.

2% /-9.

8% /-16.

1% / 86.


The company’s marketing expenses were well controlled, and management and R & D expenses improved significantly in 19Q1.

The “her economy” leader creates a multi-brand + multi-category local luxury group, aiming at the layout of the entire industrial chain of a beautiful economy!

The company has implemented in-depth layout in the four “her economy” industrial chains of jewelry, women’s bags, beauty, and e-commerce. The customer base and business are committed to giving full play to synergies and mutually transforming resource advantages to open up the market.

The company’s accumulated members and extensive offline customer resources rely on channels will play a synergistic effect and effectively support the growth of the Group’s businesses.

The acquisition of Siyanli’s domestic beauty leader is a further transformation and transformation of Chaohongji’s strategy of creating a multi-category light luxury consumer circle through extension.

We are optimistic about the company’s continuous economic circle layout around her economy. In the future, the development trend of the integrated fashion industry with multiple categories and multiple sectors will not be incorporated into the business performance as the company’s Siyanli sector is converted into equity investment.We lowered the company’s EPS from 19-20 to 0.

33 yuan, 0.

39 yuan profit forecast (the original EPS is 0.

53 yuan, 0.

65 yuan profit forecast), the new 2021 EPS is 0.

The profit forecast of 46 yuan corresponds to a profit of 300 million yuan in 19-21,3.

500 million, 4.
2 ppm (yoy322%, 17%, 20%), corresponding to 14 times, 12 times, and 10 times of PE in 19-2130% profit margin?
34% interval), so we believe that the company completed a definitive replacement of its performance goals in 19 years and maintains its overweight!