Collis (603808): IRO’s shareholding ratio will increase, and the domestic market will accelerate its expansion in the future.
The main points of the report describe the company’s announcement of the acquisition of assets: it intends to use its own funds2.
$ 42 trillion in revenue.
After the completion of the acquisition, the company’s shareholding in Qianhailin was increased to 100%, and 57% equity in IRO SAS was held by Qianhailin (Qianhailin held 57% equity in ADON WORLD, and ADON WORLD held IRO SAS 100%Equity), corresponding to the overall valuation of Qianhai Forest is about 6.
Event review IRO brand was founded in Paris in 2005, positioning French light luxury designer clothing brand, has entered 50 countries through a variety of channels; IRO’s China business is mainly based on Enoch Fashion, of which Grace and IRO SAS respectively hold shares80% and 20%; Collix owns the global ownership of the IRO brand and fully promotes the business development of its mainland China region.
In April 2017, IRO’s first mainland China store opened in Shanghai Ganghui, with stores located in high-end shopping malls such as Beijing SKP and Shanghai IFC; currently, IRO has 18 terminal stores in mainland China and 54 stores worldwide.
In 2018, IRO SAS achieved global revenue5.
7.5 billion, operating profit of 9234 million, estimated net profit of about 7 million euros; according to the purchase consideration, IRO SAS is estimated to be 12.
1.3 billion, corresponding to about 20X PE.
After the acquisition, the company’s shareholding in IRO SAS changed from the original 37.
05% to 57%, the shareholding ratio increased by 19.
95%, expected to increase net profit to over 10 million (considering expectations).
IRO’s domestic development is dazzling. It is estimated that the average monthly store efficiency is about 700,000 / month, and it maintains a rapid growth trend.
At present, IRO China has only 18 stores, and there are still ample room for opening more than 300 domestic mid-to-high-end women’s clothing brands. At the 杭州桑拿 same time, compared with the mature stores of GELIX, there is also room for improvement in the effectiveness of IRO stores.
We expect that with the increase in IRO ‘s global shareholding ratio, IRO ‘s domestic store openings are expected to accelerate. With the extension of overlapping expansion and the same store improvement support, it is expected that IRO will achieve a small profit in 2019. At the same time, Collix will help to empower IRO ‘s overseas parts and driveImproved capabilities in refined management and channel expansion.
Benefiting from the weak recovery of the retail environment, the destocking of franchising channels and the ease of capital pressure, as well as the advancement of internal adjustments, the company’s performance in 19Q2 is expected to improve sequentially, and the improvement trend is 武汉夜网论坛 expected to continue in the second half of the year with a low base.
The company is expected to achieve a net profit of 4, respectively, from 2019 to 2020.
35 and 5.
14 megabytes, at least + 19% and + 18% respectively. The current price of 19PE corresponds to only 11X, maintaining the “Buy” rating.
Risk Warning: 1.
The terminal retail was sluggish; 2. The merger and acquisition was lower than expected; 3. The store opening was lower than expected.