New product orders exceeded expectations and continued to be optimistic about the company's domestic market potential

The company's ordering system is dominated by “small batches of multiples”, and the ordering will be based on the release of new products, which is routinely held twice a year. The total order value of this order was up to 126% (order size), which greatly exceeded the company and market expectations.

Judging from the feedback from dealers that the company understands, its order enthusiasm is high. On the one hand, there are more new models introduced from this order fair, and feedback on new products is generally better. On the other hand, compared with the end of last year, dealers will be next year. The sales market is more optimistic.

We believe that although the new product ordering will account for a limited proportion of the company's annual sales, under the “no mandatory ordering” ordering system, it fully reflects the dealer's affirmation of the product and optimistic expectations for the market; it also confirms the domestic sales of the company during the year. Both export and export have an early judgment of the upward turning point, and continue to be optimistic about the growth potential of the company's domestic market.

Expected to continue to benefit from improved channels and brand enhancement

We believe that the future domestic sales of the company will continue to benefit from two aspects:

First, the channel system with continuous improvement of qualifications: the pressure of high-end women's clothing business will increase, which will encourage more quality dealers to try to produce products agents; the relatively free ordering system and better dealer support system will help reduce the pressure on dealers' funds. Faster channel expansion.

The second is to continue to enhance the brand influence and consumer groups: based on better sales performance and efficiency, both stores are expected to obtain better property location; fourth-generation store promotion, innovative marketing tools, continuous marketing investment, brand influence Continue to improve, it is expected to cultivate more consumer groups and improve terminal sales.

In addition, the company's leading position in the industry and core barriers will ensure that it can enjoy the cultivation of the high-end hair products market. The hair products industry has a high degree of concentration. Based on higher technical barriers and earlier brand practices, the company has an absolute advantage in the domestic high-end hair products market and is able to enjoy the fruits of market cultivation to the greatest extent.

It is estimated that from 2013 to 2015, the company will realize operating income of 2.344 billion yuan, 2.636 billion yuan and 3.060 billion yuan respectively, and realize net profit attributable to the parent company of 208 million yuan, 270 million yuan, 353 million yuan, EPS of 0.21 yuan and 0.27 respectively. Yuan, 0.36 yuan, corresponding to 21.40 times, 16.55 times, 12.61 times of PE in 2013-2015.

Maintain the company's "Buy" rating.

Risk warning: The external economic recovery was lower than expected; the domestic retail business expanded faster than expected.