Lai Home Textile Released 2012 Three Quarterly Report Higher Income Growth

Luo Lai

The three quarterly report released in 2012, the three quarter revenue growth is relatively high.

(1) the company's revenue in the first three quarters of the year was 1 billion 847 million, an increase of 13.09% over the same period, and the net profit attributable to listed companies was 253 million, down 9.64% over the same period last year.

(2) Q3 income was 810 million, up 28.6% over the same period last year; net profit attributable to listed companies was 119 million, up 1.47% from the same period last year.

The company's Q3 revenue growth is relatively high, mainly from the May order will be locked (May 2012 autumn winter order growth rate of 23%).

(3) net profit in 2012 is expected to be between -15% and 15%.

Channel construction expansion and progress rank first in three.

At the end of the 3 quarterly report, we expect the company to add about 350 new channels (over half of the main brands of Luo Lai, and other best families). We expect the company's channel to increase by 400 in the whole year, with a growth rate of close to 20%.

Gross margin increased and sales cost increased significantly.

Gross profit margin was 39.29% in the first three quarters of this year, 1.7 percentage points higher than that of the same period last year; Q3 gross profit margin was 41.29%, 1.7 percentage points higher than that of the same period last year; and the increase in gross margin was mainly related to the promotion of conventional products and new products.

Sales expenses in the first three quarters were 392 million, an increase of 55% over the previous year, of which the Q3 quarter was 152 million, an increase of 142% over the same period. The sales cost in the first three quarters increased from 15.47% to 21.22%, resulting in a significant increase in the sales cost rate.

Increased reserves.

In terms of management costs, the company is quite strict, especially in the third quarter, with a management fee of only 37 million 510 thousand, which is 11% lower than that of the same period last year.

Credit for distributors is controllable, inventory is lower than Q2, and operating net cash is better.

The sale of the company was not as expected as expected. Q2 inventories were as high as 768 million, and Q3 at the end of the reporting period was 684 million, down 76 million from Q2.

The company has been in good control of the dealer's credit. The Q3 reporting period ended at 166 million, accounting for about 20% of the quarterly revenue.

Affected by reasonable control of inventory reduction, receivables payable and so on, Q3 net operating cash flow is 178 million.

Three quarterly reports basically show that the company is still a high quality company. It can reverse the problems arising from H1 in a timely manner, such as personnel control (management cost Q3 effective control), inventory and so on. It also provides some pressure relief for the terminal dealer inventory.

We expect 2012/2013 revenue of 27.16 yuan and 3 billion 140 million yuan, increased by 14% respectively (corresponding to the fourth quarter, 870 million, up 16%), 15.6%; net profit is 3.84 (corresponding to the fourth quarter 130 million, 35% increase over the previous year), 433 million (25% income tax rate assumption), increased by 25%, and EPS; respectively, PE, respectively.

Valuations have bottomed out. The only thing to wait for is spring and summer 2013.

Digestion; maintain the "prudent recommendation" rating.