Antarctic E-commerce (002127) 2019 Interim Report Review: GMV Growth Accelerates E-commerce Channel Competition Continues to Strengthen
Antarctic e-commerce’s 2019 interim report performance maintained strong growth, and it achieved statistic GMV109 in the first half of the year.
80,000 yuan, an increase of 62%; total income of 16.
400 million, an increase of 32%; non-attributable net profit also increased by 32%.
The company’s competitive edge in the e-commerce field has continued to strengthen. We are optimistic about the company’s medium- and long-term growth potential and maintain a “Buy” rating.
The company’s 2019 interim performance was strong.
Total operating income for the first half was 16.
400 million, an increase of 32%; realized net profit attributable3.
900 million, an increase of 32%; deducted non-attributable net profit 3.
600 million, an increase of 32%.
Among them, comprehensive brand service fee income in the first half of the year3.
500 million US dollars, + 32% per year, the proportion of brand integrated service fee income in GMV (monetization rate) 3.
2% (one year-0.
7 pct), of which the monetization of single quarter in the second quarter replaced 4.
2% (year -1.
4pcts), mainly affected by the accelerated growth of GMV, the expansion of new categories with low bid rates and the pace of merchants’ bids. The dealer brand licensing business income was 29.6 million yuan, an increase of + 96%; Time Connect achieved operating income of 12.
1 trillion, an increase of 34%.
GMV accelerated growth, significantly outperformed the market, and channel competition continued to strengthen.
The company achieved GMV109 in the first half of the year.
80,000 yuan, + 62% a year, accelerating growth.
① From the perspective of brand, Antarctic people realize GMV 95.
4 trillion, +67 a year.
6%; Cardile achieves GMV 12.
700 million, +36 a year.
② In terms of platform size, Ali, JD.com, Pinduoduo, Vipshop will realize GMV 73.
6 billion, 17.
6 billion, 13.
6 billion, 4.
4 trillion, with an annual growth of 55.
At 8%, the overall GMV growth rate significantly outperformed the market (Tmall ‘s physical GMV growth rate was slightly higher than 30% during the same period), and the competitiveness of Antarctic ecological e-commerce channels continued to strengthen.
Accounts receivable management is effective, cash flow is improved, and expenses increase faster with more talent expenditure.
① By the end of the reporting period, the company’s net receivables were 9.
0 million yuan, an increase of 0 from the end of the first quarter.
20,000 yuan, of which, account receivables for brand authorization and integrated service business3.
9 trillion, a year + 26% (corresponding annual average growth of business income during the same period + 36%), factoring business receivables3.1 ‰, one year -24%; accounts receivable of time interconnection business1.
800 million US dollars, -33% per year (income more than + 34%), the overall accounts receivable control is very effective; other accounts receivable 0.
840,000 yuan, which is the increase in the amount of time deposit paid to the media by Time Connect; advance payment 3.
2 ppm, a decrease of 41% from the beginning of the year. It is based on the prepayment cycle control of time interconnection. The advance payment for VIVO is from 3.
9 trillion fraction 7045 trillion; net operating cash flow in the first half of the year 1.
5 trillion, an annual increase of 43%, time interconnected cash flow from negative to positive, net inflow of 26.07 million yuan (the same period last year-96.74 million yuan).
② In terms of expenses, in the first half of the year, the company’s sales expenses increased to 32.8 million yuan, + 70% per year, and management expenses were 42.2 million yuan, + 74% per year. This was due to the company’s business expansion and talent upgrade, and sales and management personnel expenses increased.
The Matthew effect of the company’s brand group in the e-commerce field has been further strengthened, and relying on professional e-commerce operation services and data capabilities to empower businesses to create added value in the industry chain. At the same time, brand, quality and supply chain management have continued to improve, and continue to be optimistic about the company’s long-term competitiveness.
① In the first half of the year, the company’s brand had about 100,000 product links in various e-commerce channels, and the number of payments on Ali platform stores was nearly one.
300 million pieces, paying more than 100 million person-times; the average monthly number of visitors of the Antarctic underwear category on the Ali platform is nearly 40 million, the average monthly order is 49 yuan, and the average monthly conversion income is 19.
Ali platform advantage underwear category GMV 23.
300 million, a 56% increase with a market share of 7.
1% (5 in the same period last year).
5%), bedding GMV 12.
900 million, a 52% increase with a market share of 7.
0% (5 over the same period).
6%), ranking first in the industry.
② While providing brand authorization for suppliers, relying on rich e-commerce operation experience, the company further enhances its services for partners such as suppliers and distributors, and provides businesses with strategic development, data analysis and application, category planning, and explosion models.Recommendation, R & D design, quality control, flow management, resource matching and other internal one-stop supply chain and e-commerce operation services to enhance business competitiveness and return on investment. For example, relying on big data for empowerment, independent research and development around electricityThe platform ‘s data management and business intelligence tool “Antarctic Cloud” has improved the synergy efficiency between dealers and the supply chain, and the operational efficiency at the consumer end.
③ The company has continued to increase its investment in quality control and brand upgrades in the recent past. The supply chain has improved efficiency. Under the overlap of professional e-commerce operations, the company’s brand group sales have continued to grow on platforms such as Ali.Promotion of the level of the industrial chain.
Risk factors: the competition pattern of third-party platforms and the risks of changes in platform policies; product quality control risks under the authorization model; new brands, category expansion exceeding expectations; brand comprehensive service fee rates lower than expected; overall e-commerce growth rate reduced; and the cost increase during the periodExpectations; goodwill risk; lifting the ban and reducing risk.
Investment suggestion: Considering the company’s brand Matthew effect and the continuous improvement of e-commerce operation capabilities, the quality control system and supply chain operation management continue to improve, the main business GMV, revenue, and profit growth continue to materialize.Prediction 1成都桑拿网2
0 ppm / 16.
0 ppm / 20.
0 million yuan, corresponding to 2019-2021 EPS forecast is 0.
82 yuan, currently corresponding to PE 21x / 16x / 13x in 2019-2021, we continue to be optimistic about the company’s e-commerce channel competition and medium- and long-term growth potential, and maintain a “buy” rating.