Hasson Shares (603958) 2019 Interim Report Review: Channel Adjustments Continue Performance Pressure

Hasson Shares (603958) 2019 Interim Report Review: Channel Adjustments Continue Performance Pressure

In 19H1, revenue decreased by 13%, and net profit also decreased by 77%. The gap in performance pressure in the first half of 2019 achieved the company’s revenue6.

3.4 billion, down 12.

50%, deducting non-net profit of 163.

320,000 yuan, down 71.

98%, net profit attributable to mother 882.

850,000 yuan, down 76.

77%, EPS is 0.

04 yuan.

The decrease in net profit over revenue was mainly due to lower gross profit margin and higher sales expense ratio.

In terms of quarters, 18Q1-19Q2 company revenue 苏州夜网论坛 increased by -3.

80%, -9.

53%, -12.

52%, -14.

55%, -11.

88%, -13.

26%, net profit attributable to mother increased by -4.

40%, -69.

43%, expansion, expansion, expansion, -44.

63%, from profit to loss.

In 2019H1, there were 56 net closed stores, and at the end of the period, there were 1,532 stores, and the channel extension decreased by 5.

95%, 2019Q1-Q2 revenue continued to decline; 19Q1 profit margin fell significantly, mainly due to the decline in gross profit margin, sales expense ratio increased, other income decreased, 19Q2 asset impairment losses increased.

The gross profit margin decreased due to the decline in the proportion of direct sales revenue, and the expense ratio was basically stable.

78PCT to 52.

63%, mainly due to the contraction of high gross profit margin direct sales channels, direct sales revenue decreased by 17%.

The gross profit margin of distribution channels increased by 64%.

90PCT, revenue share increased.

The company’s gross profit margins were 54.

93% (+2.

39PCT), 53.

79% (+0.

38PCT), 49.

54% (-0.

46PCT), 49.

84% (-1.

57PCT), 52.

92% (-2.

01PCT), 52.

27% (-1.52PCT).

During the 2019H1 period, the expense ratio (considering research and development expenses) will also decrease by 0.

16PCT to 47.

88%, of which the sales expense ratio increased by 1.

56PCT to 42.

46%, mainly due to the substantial increase in expenses such as the budget of the sales staff; the overhead rate (considering R & D expenses) also decreased by 1.

61CT to 5.

54%, mainly due to large dismissal benefits during the same period last year, a large cost base, and reduced R & D personnel expenses; the financial expense ratio fell slightly to 0.

09PCT to -0.


The competition in the women’s shoes industry is fierce, and the channels continue to adjust. The IPO restricted shares are listed and circulated. We judge: 1) The demand for women’s shoes industry is still weak and the competition is fierce. The company’s continued decline in offline stores has dragged down revenue.

At present, the company continues to optimize its brand image, marketing network, R & D design and other aspects. It is expected that the decline in revenue in the future is expected to narrow.

2) The proportion of direct sales channels of H1 companies in 2019 was 82.

54%, 87 compared to the same period of 18 years.

70% decline, leading to a decline in gross profit margin.

In the future, the company will continue to optimize the structure and management of direct sales channels, actively deploy channels such as online and shopping malls, strengthen channel cost control, and improve profitability.

3) Announcement on the listing and circulation of IPO restricted shares issued on June 25, 2019.

5.1 billion shares, with a circulation date of July 1, 2019.

As the company’s net profit fell more than the expected maximum level, we lowered the EPS for 2019-20 to 0.


04 yuan (the original value is 0.


05 yuan), EPS is predicted to be 0 in 2020.

05 yuan, currently expected to correspond to 191 times PE in 2018, maintaining a “neutral” rating.

Risk warning: weak consumption, substantial increase in asset impairment, and increased competition in the industry.