Biyin Lefen (002832): Single store efficiency improvement drives high growth rate

In 2018, the income / net profit attributable to mothers increased by 39.

96% / 62.

16%, beautiful performance.

The company achieved revenue in 201814.

76 trillion, with an increase of 39.

96%; net profit attributable to mother 2.

92 trillion, with an increase of 62.


During the reporting period, after the company passed the certification of emerging enterprises, 上海夜网论坛 the income was paid at 15%, and the profit before tax increased 47.


Gross profit margin fell in 20182.

12pct to 63.

28%, mainly due to the layout of mid-range brand Venetian products; the sales expense ratio decreased by 2.

91% to 29.

67%, the management expense rate fell by zero.

78pct to 10.

45%, mainly due to the increase in the efficiency of the company’s single store, the net rate of comprehensive utilization rate increased by 2.

71% to 19.


The company plans to increase the dividend by 7 yuan for every 10 shares with a dividend rate of 30.


The improvement of single store efficiency is the driving force of performance.

As of the end of 2018, the company had 764 terminals (directly operated 365 / joined 399), an increase of 112 (+ 17%).

According to our calculations, the company’s same-store growth rate in 2018 was about 25%. The rapid growth of the company’s revenue was mainly due to: 1.

The company implements the “location adjustment, expansion of area” transformation plan for existing stores to increase the profitability of single stores when the cost of single stores is relatively stable (we estimate that the effectiveness of directly operated stores is around 4 million);

2. The brand positioning is “three highs and one new”, supplemented by top-grade fabrics and exquisite design, thousands of SKUs provide a certain choice, and high-quality products are popular;

Store operation management is solid, the information system is strengthened, the VIP system is comprehensive, the contribution rate is as high as 60% +, and all-round store staff training is effective in maintaining long-term customer relationships and has a strong repurchase momentum.

Inventory turnover trend, overall operation is healthy.

Account receivable turnover days increased by 2 days to 20 days in 2018, inventory turnover days increased by 28 days to 322 days, and the absolute value of inventory increased by 78% to 6.

2.2 billion US dollars, mainly due to the company’s adequate stocking, stocking for the new brand Venice, and adjustment of franchise exchange ratio.

The company’s cash flow was healthy, and net cash from operating activities increased by 35.

71% to 1.

7.1 billion yuan.

Looking ahead to 2019, there is plenty of growth momentum.

In Q1 2019, revenue increased by 27.

37% to 4.

72 trillion, pre-tax profit increased by 32.

74%, net profit increased by 52.91% to 1.

3 trillion, continuing the high growth rate, we expect same-store growth of 15% + in the first quarter of 2019.

In 2019, the company’s main brand Biylefen developed steadily while expanding its new brand, Venice.

Venice positioning mid-range vacation travel series (price increase 4?
6 times). In 2018, there were about 40 trial operation stores, and the market responded well. We judge that the speed of the main brand expansion in 2019 is comparable to that in 2018, and Venice will open 30?
More than 40 companies are expected to become follow-up forces of scale growth.

Investment Advice.

The company’s outstanding product differentiation positioning, refined terminal management, and outstanding performance in the same store; with the continuous expansion of channels and the development of new brands, the future high growth trend continues.

The company adjusted the previous share repurchase plan, adjusted the repurchase annual maximum up to 70 yuan / share, the remaining funds can be repurchased 2.16 million shares, accounting for total share capital1.


Based on 2018’s better-than-expected results and the outstanding performance of the main brands in 2019, we raised the net profit for 2019/2020/2021 to 4.



380,000 yuan, corresponding to EPS2.



52 yuan.

The current price is 48.

1 yuan (corresponding to 21 times PE in 2019), raise target price to 68 yuan, corresponding to 30 times PE in 2019.

Risk warning: The sales of tourism and holiday products are not up to expectations; the prosperity of the consumer market is falling.