The Inspiration Of BELLE'S Success: Acquiring Potential Shoe Companies In The Industry

December 16th hearing

The growth history of BELLE is a perfect combination of entity management and capital market, and also an important factor to make the company stronger.

Before the listing company realized the pformation of the essence from the foundry enterprise to the private brand retailer through the three step pformation, the ample funds raised by the company after the listing accelerated the expansion of the self operated channel, and also provided better resources for a series of mergers and acquisitions in the capital market, thus achieving a faster scale expansion in a short time and further consolidating the first status of the company's industry.

Looking back at BELLE's growth path, we believe that its success mainly comes from six aspects.

That is to say, they are well versed in the multi brand operation strategy of the nature of the industry, efficient vertical integrated operation mode, refined inventory management mode, more interactive large scale direct network, emphasizing management incentive structure and strong merger and acquisition capabilities.

Saturday (002291) is a company with great potential outside BELLE.

Our reasons are as follows: (1) the Chinese women's shoes market has enough consumption capacity and relatively stable brand structure to provide more opportunities for the existing advantageous enterprises; (2) the company's current development stage is at a historical low level, and a series of improvement and improvement of management strategies has been and will continue to bring benefits; (3) the promotion of domestic urbanization and the continuous sinking of future commercial channels will provide greater market space and more equal opportunities for the development of the first tier enterprises in the middle and high-end high-end women's shoes field besides BELLE. (4) the existence of BELLE is both a pressure and a good learning opportunity for Saturday.

Saturday's study of BELLE is not a simple imitation, but a combination of the future development trend of the industry and its own business foundation. It will continue to selectively absorb and learn. This learning pursuit will eventually be reflected in the gradual narrowing of the gap between the company and BELLE.

Saturday's earnings forecasts and investment recommendations: we are currently maintaining Saturday's earnings forecasts. We expect earnings growth in 2010, 2011 and 2012 to be -4%, 57% and 50% respectively. Earnings per share are forecast to be 0.40 yuan, 0.63 yuan and 0.95 yuan. At present, from the angle of P/E, Saturday is higher than that of BELLE, but the development stage and scale base of the two are different, and the future growth rate is different.

From the point of view of P/S, excluding the low value sportswear agency business, the P/S of BELLE shoe industry is about 7 to 8 times, and on Saturday it is only about 5 times, and there is still much room for improvement in the future.

Maintain a "buy" rating on Saturday.