Daphne'S First Quarter Results Slipped In 2013

Less than p ago, Daphne International (00210, HK) released the latest operating information in the first quarter of 2013. The group's core brand business suffered a slight decline of 2.5% in the first quarter of this year.

And its sales performance has also been slow by the recovery of China's consumer market, and the spring has been dragged down by the cold weather in previous years.

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< p > insiders pointed out that Daphne's performance declined in the first quarter of this year. On the one hand, the high growth last year led to a higher base. What's more, its "a href=" //www.sjfzxm.com/news/index_h.asp "in the second half of last year" has begun to affect the operation in 2013.

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< p > < strong > sales declined slightly in the first quarter < /strong > /p >

After P's year-on-year growth of 22.8% over the same period last year, Daphne did not win.

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< p > the company announced recently that the core brand business of the group had a slight decrease of 2.5% in the first quarter of this year.

Although the sales trend in the early spring has gradually improved, however, the bad weather in late March has affected the sales momentum of spring products, and the average selling price during the period is only slightly lower than that of the same period last year.

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P, Daphne, said the group is still confident that consumer demand will pick up this year, especially when the government's measures to stimulate domestic demand will be effective later this year.

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"P" data show that Daphne's first quarter sales point in the first quarter of this year's net increase of 100, including 127 new stores, close to 27 stores, as of the end of March, the core brand sales point of 6469.

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< p > and in its recently announced 2012 performance, the company achieved operating income of HK $10 billion 500 million in 2012, an increase of 22.8% over the same period last year, a net profit of HK $950 million, an increase of 2.4% compared with the same period last year, and the value of goods reached HK $2 billion 370 million in the stock market, up 15% over the same period last year.

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< p > Daphne's sales decline in the first quarter obviously affected the anticipation of the public sector this year.

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< p > Merrill Lynch said Daphne's first quarter same store sales fell 2.5% year-on-year, lower than expected, and the same quarter sales growth in the second quarter is still hard to see.

Bank of America Merrill Lynch expects Daphne's performance in the second half of this year to improve. It is expected that demand will resume. Under the policy of maintaining "< a href=" //www.sjfzxm.com/news/index_q.asp > reducing price < /a >, gross profit will gradually improve.

In gross margin, cost saving and more sales in two or three tier cities, Daphne's annual performance will outperform its peers.

The target price was reduced from HK $11.1 to HK $10.8, and the rating was "buy".

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"P" Guotai Junan issued a report that lowered the company's 2013~2015 annual earnings per diluted share forecast.

In the same store growth of 9% in 2012, the diluted earnings per share increased by only 1.4%.

It is expected that the company will face the pressure of operating leverage contraction this year, so the company's rating will be downgraded to "reduction" and the target price will be reduced to HK $7.87, corresponding to 13.5 times and 15 times the basic earnings per share and the full diluted earnings per share in 2013.

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< p > < strong > "de Affiliate" fermentation < /strong > < /p >

P, an insider who declined to be named, pointed out that an important reason for Daphne's decline in the first quarter of this year is that the sequela of the policy of "de Affiliate" began last year.

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< p > as early as in November 2011, 46 Daphne franchisees gathered Daphne "a href=" //www.sjfzxm.com/news/index_p.asp "Changsha" /a "Distribution Department, protesting Daphne's" renewal of contract no longer with franchisee ".

The franchisees said Daphne franchisees and group signed a contract every three years, the contract expired at the end of 2011 will continue to extend the franchise partners for three years, and will not renew the contract after 2012.

In the Changsha Daphne Distribution Department, the franchisees were appeased by the headquarters and the matter was appeased.

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< p > < span lang= "EN-US" style= "font-family: song body"; font-size: 14pt; mso-bidi-font-family: "Times New New"; ""; "

< p > Daphne annual report 2012 shows that in 2012, the company increased 880 direct sales outlets to 5472, and the proportion of Direct stores reached 85% of the total period from 81% at the end of 2011. The number of franchised stores decreased from 1055 in 2011 to 942 in 2012, with a reduction of 113 or about 10%.

The company's explanation of this increase or decrease shows that the company's focus on expanding its sales network strategy is direct shops.

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< p > the industry pointed out that the proportion of franchised stores has gradually decreased, the proportion of Direct stores has increased, and the problem of stealth of many companies has become explicit. Once the company fails to handle properly, it will directly affect the financial data of listed companies.

"Another problem that can not be evaded is that the diversification of Daphne's brand led to the decentralization of resources, making the main brand growth momentum insufficient."

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