Ge Lisi focuses on high-end fashion and steadily creates high-end fashion groups

Since the second half of 2016, the recovery trend of physical consumption has continued, and each brand of Gloria has benefited from the recovery of high-end consumption.

The light luxury brand fills the gap between the mass brand and the luxury goods, which not only solves the pain points of the mass brand design plagiarism, the high rate of the shirt, the general quality of the fabric, but also reduces the burden of purchasing the luxury goods too high. From the perspective of consumption, the positioning of light luxury goods is just in line with the consumption needs of the new middle class. According to the statistics of the Prospective Industry Research Institute, the consumption scale of China's luxury goods industry in 2011 was 7.2 billion US dollars, and reached US$12.1 billion in 2016. The CAGR is 11%. From the perspective of the channel, compared with luxury brands, the luxury shopping malls have a high deduction rate of more than 20%, and the brand has a wide variety of styles. In recent years, it has become an important investment target for department stores and shopping centers.

Continued acquisition of small and beautiful luxury brands, the company's stable opening of the store to promote smooth

The strategy of Gloria's M&A is clear. It has acquired four international luxury brands for more than two years, including German high-end women's brand Laurèl, American personalized luxury brand Ed Hardy, French designer luxury brand IRO and Chinese. Designer brand VIVIENNE TAM. Each of its brands operates independently and the company operates in a group-based manner. Brands with similarly positioned but different styles can expand customer coverage, improve the company's overall channel bargaining power, and enrich corporate talent and management resources. As of 2017h1, the company's brands have opened steadily, and the sales of single stores have continued to improve.

Responsible for the operation of e-commerce revenue, strengthen the company's online channels

On behalf of the operation of e-commerce services refers to the e-commerce activities to provide some or all of the e-commerce services for brand owners. In the 2012-2016 industry, the transaction market CAGR was 66.7%, and the transaction volume in 2016 reached 69.03 billion yuan. According to iResearch's forecast, the growth rate in 2017-2019 is expected to remain above 30%. In August 2016, the company acquired the vertical shoe bag and operated the leading Baiqiu network, and further improved the channel layout of the songs while enhancing the performance, and improved the online channel operation level of the company's multi-brands. In addition, Baiqiu E-Commerce operates e-commerce as a mid-to-high-end international fashion brand, which can help Ge Lisi to connect more international brand resources and continuously explore opportunities for cooperation that suit the company's strategic goals.

Steadyly build a high-end fashion group, giving a “Buy rating” for the first time

Since the second half of 2016, the recovery trend of physical consumption has continued, and each brand of Gloria has benefited from the recovery of high-end consumption. While continuing to acquire many brands, the company has intensively cultivated existing stores and steadily built high-end fashion groups. We expect the company's revenue in 2017-2019 to be 2.020 billion yuan, 2.553 billion yuan, 3.010 billion yuan, and the net profit of the mothers to be 3.23 respectively. 100 million yuan, 430 million yuan, 546 million yuan, EPS are 0.96 yuan, 1.27 yuan, 1.62 yuan. The A-share comparable company's average PE in 2017 is about 24 times. Compared with the comparable company, the multi-brand strategy is carried out smoothly and the growth is more prominent. It is given 30~35 times PE in 2017, and the target price is 28.8~33.6 yuan. The first coverage is given a “buy” rating.

Editor in charge: Wang Zhen