Rebecca: 15 Years Look Forward To Export Recovery And Domestic Retail Innovation

The company's operating income and net profit in 2014 decreased by 9.25% and 9.41% compared with the same period last year, and realized a basic earnings per share of 0.17 yuan, of which fourth quarter business income and net profit decreased 10.26% and 11.02% respectively compared with the same period last year.

The weak demand in Europe and the United States and the change in the structure of product sales have made the company's 14 year performance no obvious improvement.

The gross profit margin of the company increased by 3.54 percentage points over the past 14 years, and the gross profit margin of the single quarter rose fourth percentage points in the fourth quarter.

Due to the decline in sales revenue, the company's annual fee rate increased by 1.43 percentage points year-on-year, and the financial cost rate increased by 1.26 percentage points over the same period.

Due to the decrease in sales receipts and the increase in raw material procurement, the company

Net cash flow net has not improved significantly over the same period. At the end of the year, company accounts receivable increased by 11.29% compared with the beginning of the year, and the inventory balance increased 18.13% compared with the beginning of the year.

In the 14 year, the recovery in the US and EU markets was lower than expected, and the African and domestic markets maintained a relatively fast growth.

From a regional perspective, the whole year

The company's sales in the Americas dropped by 28.24% and sales in European markets dropped by 7.55%.

The African market maintained a relatively fast growth, with sales rising by 18.51% over the same period last year.

The sales of domestic hair products series were affected by the overall retail environment downturn. The annual sales revenue increased by 10.25% over the same period, and the growth rate slowed slightly compared with the 13 years.

From a long-term perspective, Future Ltd will steadily develop its markets in North America and Europe, focusing on Africa and China.

In the retail market, we should cope with the increase of human cost through the global capacity layout.

We believe that the aging of the domestic population will bring more room for the development of the domestic retail business. At the same time, the company is also actively developing new channels for salon business and e-commerce. In the medium to long term, with the gradual increase of the proportion of domestic business sales, the company's future business nature is expected to pform from manufacturing enterprises to brand consumer goods enterprises, and the valuation will also be improved accordingly.

But considering the current economic environment at home and abroad, we need a certain time to judge the company's operation adjustment.

Financial forecast and investment suggestion

We expect the company's earnings per share from 2015 to 2017 to be 0.21 yuan, 0.25 yuan and 0.31 yuan respectively, referring to the historical average valuation level of the company in the past 5 years (32 times PE), giving the company 32 times PE valuation in 2015, corresponding to the target price of 6.72 yuan, and maintaining the company's "overweight" rating.