Antarctic e-commerce (002127): Interim report results in line with expectations Q2GMV growth rate increase time interconnection operation efficiency
The event company announced the semi-annual report for 2019: the company achieved revenue 16 in 2019H1.
34 ppm, an increase of 32 in ten years.
44%; net profit attributable to mothers3.
860,000 yuan, an annual increase of 32.
Single Q2 company realized revenue 8.
10 ppm, an increase of 11 in ten years.
03%; net profit attributable to mother 2.
64 ppm, an increase of 30 in ten years.
The growth rate of Q2 GMV is significantly improved. The growth rate of major brands and platforms is beautiful. The GMV of H1 2019 increased by 61.
7% to 109.
800 million, of which single Q2GMV increased by 70.
2% to 58.
20,000 yuan, Q2 company GMV growth rate increased by 17.
2 pct, increase at least 18Q2 by 21.
In terms of brands, Antarctic / Cartier / Classic Teddy 19H1GMV plus +67 respectively.
6% / + 36.
7% / + 51.
6% to 95.
900 million, Q2’s main brand Antarctic growth rate increased by 22 pct to 79% earlier than 19Q1.
In terms of channels, 19H1 Ali / Jingdong / Social E-commerce / Vipshop GMV were +55 respectively.
6% / + 37.
56% / + 130.
74% / + 167.
78% to 73.
The company’s largest channel, the Q2 growth rate of Ali, significantly increased by 12 earlier than Q1.
5 pct to 62%, it is expected to benefit from Alibaba’s sinking market fits the company’s positioning.
The revenue of the headquarters continued to increase rapidly. The time-linked centralized operation growth improvement indicator 19H1 The company’s headquarters revenue also increased by 29% to 4.
At 2.5 billion, the revenue of Q2 headquarters alone increased 24% to 2.
900 million; 19H1 interconnection revenue increased by 33.
74% to 12.
1%, single Q2 time interconnection revenue 无锡桑拿网 increased by 5% to 5.
The company’s headquarters revenue maintained a high growth rate. The growth rate of Time Connect Q2 is expected to be related to centralized operations and improving quality: H1 Time Connect receivables, and cash flow conditions have obviously improved.
The H1 monetization rate was dragged down by the expansion of categories and social e-commerce traffic. The Q2 monetization rate alone increased by H1’s brand licensing and comprehensive service business revenue by 35.
64% to 3.
8.1 billion, lower than the GMV growth rate, mainly due to the company’s comprehensive service fee income for new categories and social e-commerce platforms, corresponding to the 19H1 company’s monetization rate fell by 18H1 and decreased by approximately 0.
7 points to 3.
Looking at Q2 alone, the company’s brand licensing and integrated services business revenues increased by 27.
32% to 2.
8.5 billion, corresponding to a monetization rate of about 4 in 19Q2.
3%, down 1 in the second quarter of the year.
5 pct, up 1 from 19Q1.
8pct, Q2 monetization rate rebounded significantly from Q1, the company’s new categories and new channels expanded smoothly.
The decrease in gross profit margin has declined, and the net interest rate has basically remained stable in 19H1.
32 pct to 7.
66% dragged down, the company’s gross profit margin fell by 1.
78 pct to 29.
Driven by the minimization of asset impairment losses and the increase in income tax rates, the company’s net profit margin in 19H1 was 23.
63%, a small margin of 0 a year.
08pct, basically stable.
In 19H1, the company’s net profit attributable to the parent increased to 3.
Among them, the H1 headquarters’ net profit grew strongly, increasing by 39% to 3.
2.9 billion; H1 time interconnection returns to net profit +2.
2% to 0.
Time Connect focuses on operations, driving cash flow, and accounts receivables have improved the operating cash flow of the company in 19H1 by 43.
1% to 1.
5 billion, absolutely benefit from the time net operating cash flow from -0 per year.
9.7 billion to zero.
Driven by 2.6 billion.
19H1 The company’s accounts receivable and bill extension decreased by 8.
9% to 9.
3.3 billion, also mainly benefited from the extension of Time Connect receivables greatly reduced by 32% to 1.
The Matthew effect is obvious. Expansion of product categories and smoother drainage have broader space. The 19Q2 company ‘s main brand, Antarctic GMV, has significantly increased its growth rate (22 pct from Q1 and 39 pct from 18Q2), which proves that the company ‘s Matthew effect is more significant.
High-end, the company’s dominant category continued to strengthen: H1 Antarctic Ali platform’s dominant category “Ladies’ Underwear / Men ‘s Underwear / Home Wear ”GMV also increased 56% to 23.
29 trillion, the market share increased by 1.
6 pct to 7.
10%, ranked first; “Bedding” GMV also increased by 52% to 12.
9.2 billion, the market share increased by 1.
4 pct to 6.
98%, also ranked first in the industry.
At the same time, the company has formed a logically clear business closed loop, expanding categories, and the flow of traffic has become smoother: the company’s high sales have brought continuous tilt of resources, which has led to a decline in category expansion and a spontaneous accumulation of traffic under high consumer recognitionTo ensure the rapid expansion of the company’s ecosystem.
H1 ‘s main brand Antarctic ‘s category expansion marginal cost and marketing cost have been significantly reduced. H1 ‘s Antarctic ‘s official flagship store ‘s SKUs also increased by 44% to about 6,500. The direct promotion fee as a percentage of GMV fell more than 0.
5 pct to 0.
86%, direct promotion fee is reduced by 36.
Enabling data on the entire chain, integrating cost reduction in the industrial chain, and improving efficiency The company opened key indicators and analysis of the entire production and sales process to partners, and improved the quick response capability of the entire supply chain.
Consumers launch Antarctic staff, Antarctic research and development; supply side launches a series of tools such as supplier quality diagnostic tables to help factories operate efficiently: the capital turnover rate of some factories has increased from the original 5-10 times / year to the current 30-40 times/year.
The company also launched industrial chain router services to efficiently match supply and demand supplements. It plans to establish 20-30 industrial chain service centers in major industrial belts such as Jiangsu, Zhejiang, Fujian, and Guangdong within the next 1-2 years.
Investment suggestion: The company’s head category market still has a lot of room. Under the blessing of the Matthew effect, new categories have grown rapidly. The growth rate of the main platform, the major brand Q2 GMV, has increased.
Timeline’s operating efficiency has improved, cash flow, and accounts receivable continued to improve.
The industrial chain has strengthened integration and its competitive advantages have been continuously enhanced.
We expect the company to return to its parent’s net profit for 2019-2021.
5 billion, 16.
2 billion, 20.
800 million, EPS is 0.
85 yuan, corresponding to PE is 21, 16, 12 times, maintaining the “buy” level.
Risk factors: intensified competition in the industry; less-than-expected development of mobile Internet business; obstacles to the development of new categories; rapid rise in online traffic costs