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Hui Li Securities: PEAK Looks Bright &Nbsp; Look At 5.5 Yuan.

2011/3/16 11:59:00 57

Peak

Sports (market, information, commentary) (01968) announced yesterday's year-end results as of the end of last year, the share price rose against the market and closed at 5.04 yuan, up 0.12 yuan, an increase of about 2.5%.

Its closing price has increased by 10 days and 20 days moving average, and the turnover has increased to 10 million 480 thousand shares, the largest volume since January 21st.

Expand distribution network turnover increased by 37%

The group's turnover in the previous year was 4 billion 249 million yuan, an increase of 37% over the same period last year, while net profit increased by 31% to 822 million yuan.

The increase in turnover is mainly due to the increase in market demand for group products and the continuous expansion of China's distribution network.

By the end of last year, the number of authorized retail outlets of PEAK has increased from 6206 at the end of 2009 to 7224, an increase of more than 16%.

Clothing for all kinds of products

Turnover

The largest increase was 44%, mainly because the group added a series of clothing products, and the display area of clothing products in newly added or newly decorated retail outlets was generally larger than that of footwear products. Customers bought more clothing products than before, so that clothing products accounted for 54.5% of the total turnover from 51.9% in 2009.

The average unit price of clothing and footwear was 56.7 yuan and 83.6 yuan respectively, the former increased by 6.2% compared with 2009, mainly due to the increase in production costs.

The average unit selling price of footwear products decreased by 1.3% compared with the same period last year, mainly because the group's footwear products revenue had changed in the product mix, and the lower priced footwear products such as running shoes and board shoes increased considerably in 2010.

800 retail stores to be added this year

Gross margins of clothing and footwear products were 38.1% and 38%, respectively, representing a slight increase of 0.9 and 0.2 percentage points over 2009, resulting in a slight increase in gross margin of 0.5 percentage points to 38%.

The group plans to open 800 new rooms this year.

Retail store

And expand the business strategically in the first tier cities. The capital expenditure in the next 3 years will reach 2 billion yuan, mainly for the construction of garment production base and headquarters in Shandong, as well as the development of logistics and the enhancement of R & D.

The cash flow of the group was quite strong. The net cash inflow from operating activities amounted to 1 billion 160 million yuan in the previous year. The cash increased by 674 million yuan to 2 billion 660 million yuan and the debt ratio was zero after deducting capital expenditure and paid dividends.

In the first 3 quarters of this year, the order group recorded annual growth of 25%, 24% and 23.6% respectively. Sales for the same store grew 10% this year, and the annual profit forecast will increase to 970 million yuan, with a price earnings ratio of less than 10 times and a target price of 5.5 yuan.