Anzheng Fashion (603839) In-depth Report: Continuously Promoting Multi-Brand Development Strategy

Key points of investment: The company is a leader in high-end women’s wear, with multi-brand operations.

In general, the company owns two high-end fashion brands: Zanzi, Yin Mo, Anzheng Zhongshan, Mosak and Finachen, and Anna Kou, an e-commerce brand.

The company founded the core brand “Zizi” women’s clothing in 2001, and has now developed into one of the domestic leading brands of high-end mature womenswear.One of the top ten women’s clothing brands.

The company continues to promote the multi-brand strategy, and has now formed a “pyramid” brand camp with a solid structure, diverse styles and complementary positioning.

At present, the company’s performance still mainly depends on the contribution of “Zhuzi”, and the performance of other brands has increased year by year.

At present, nearly 70% of the company’s revenue comes from its core brand “Zizi”, and the “Zizi” brand achieved revenue 8 in the first three quarters of 2018.

USD 5.0 billion, accounting for about 69% of revenue, a 15-digit decrease from 2013.

In recent years, the company has continued to 武汉夜网论坛 promote its multi-brand strategy, and its sub-brands have gradually contributed to performance and the proportion of revenue has gradually increased; Yin Mo, Anzheng, Mosak and Fina Chen achieved revenues in the first three quarters of 20181.

6.5 billion, 0.

5.5 billion, 0.

1.9 billion and 0.

8.8 billion yuan, accounting for 14.

2%, 4.

7%, 1.

6% and 7.

6%, an increase of 5.

4 digits, 2.

8 digits, 1.

6 digits and 7.

6 averages.

The adjustment of terminal channels ended in 2016 and resumed expansion in 2017.

The company’s terminal channels continued to adjust from 2015 to 2016, and its franchise stores closed 33 and 95, respectively, while its direct-operated stores maintained better expansion, with a net increase of 33 and 42 stores from 2015 to 2016, respectively.

In 2017, the franchise channel resumed expansion, and the total number of franchised stores increased by 31; the direct sales channel continued to expand, with a net increase of 24 directly managed stores.

The channel continued to expand in 2018. At the end of 2018Q3, the total number of terminal stores increased by 40, of which franchised stores and direct-operated stores increased by 24 and 16 respectively.

The company’s performance has gradually picked up since 2017.

Affected by the adjustment of terminal channels, the company’s 2016 performance improved.

In 2017, the expansion of terminal channels resumed, and performance resumed positive growth.

In 2018, it maintained rapid growth.

In the first three quarters of 2018, the company’s total operating income and net profit attributable to mothers were 11 respectively.

6.2 billion and 2.

4.7 billion, an increase of 16 each year.

66% and 20.


Maintain recommended level.

It is expected that the company’s early 2018-2019 earnings will be 0.

81 yuan and 1.

00 yuan, corresponding estimates are 16 times and 13 times.
The company continues to advance its multi-brand strategy, continues to expand offline, and expects rapid growth online.
The company’s future performance is expected to increase steadily. The current estimate is reasonable and the recommended level is maintained.

risk warning.

The terminal consumption is sluggish, channel expansion is slowing down, and inventory impairment risks.