361 Degrees, PEAK'S Financial Report Is Very Beautiful, But The Stock Price Falls, The Value Of The Investment Is Deviated

From the day before yesterday to yesterday, 361 degrees Together with PEAK, they have successively released their own financial reports, including Anta, which was first released before, and Chinese brands have successively shown their performance in 2014. A few days later, Li Ning will also hand in his report card. Behind the financial report, we would like to see what the company is doing and what changes have taken place?

The day before yesterday, we saw the release of the 361st annual financial report for 2014. The revenue was 3.906 billion yuan (the same below), increased by 9.01% compared with the previous year (the same below), the gross profit was 1.597 billion yuan, increased by 12.68%, and the net profit was 398 million yuan, increased by 88.2%. It should be said that it is still very beautiful in terms of figures. At the same time, 361 times listed several good news: industry recovery, government support, better performance, good order meeting data, improved accounts receivable, excellent children's clothing business and the joint launch of children's smart shoes with Baidu.

However, after the release of the 361st financial report, the share price dropped sharply, once falling by about 10% to close at HK $2.31, or about 7% throughout the day. At noon on March 11, the stock price hovered around HK $2.26, down about 2% from the previous day.

Then why did the revenue figure in 2014 look beautiful, but the stock price fell? Many people are puzzled. In fact, this is a very normal situation. The financial report represents the past, while the stock price represents the market's expectations for the future of the enterprise. The performance is related to the stock price, but not directly. From the perspective of investment, we will analyze the 361 degree financial assets.

First, let's review the financial statements of 361 degree in the past two years, and draw some conclusions

From the above data, we can find the key points below 361 degrees:

1. In the first half of 2014, the sales volume was close to 2.1 billion yuan, and only 1.816 billion yuan in the second half of 2014, an increase of 15% year on year and a decrease of 14% month on month. (The performance in the second half of the year was worse than that in the first half of the year, but it was consistent with the 361 degree practice that the performance in the first half of the year was better than that in the second half of the year);

2. The net profit of 263 million yuan in the first half of the year was almost double that of 134 million yuan in the second half of the year. (The proportion of profits in the second half of the year does not match the proportion of sales);

3. The annual net profit was 397 million yuan, but 110 million yuan in the second half of the year was simply written back from one-time business receivables. If this factor is excluded, the annual net profit growth should be 290 million yuan. (According to this figure, the net profit in the second half of the year is only 25 million, and don't forget the sales of 1.8 billion in the second half of the year);

4. On November 18, 2014, a 361st announcement was made that: it is expected that the net operating profit will be recorded in the financial year ending December, which will increase significantly compared with 2013, mainly because the control of accounts receivable in the year has been improved as a whole, so there is no further impairment expense, which is RMB 152 million compared with the previous financial year. In addition, the consumption desire of the sportswear industry has gradually increased. The Group's operating income and profit margin in the first ten months of this year have remained stable on the whole, and costs have also been strictly controlled; (There is no mention of the sharp retrogression of net profit in the second half of the year, which is considered misleading by the outside world)

5. Although the smart children's shoes cooperated with Baidu are the selling point, the actual prospect is still unclear, and the contribution to future revenue and profit is not clear (Baidu is the leading company of this project, and there are also companies such as Budiu in China that are making shoes in this regard, and there are still many unknowns about the future)

The above points can explain the reason why the stock price fell although the 361 degree financial report data looked good. However, the actual reason may be that the capital market is more complicated than we think.

Similarly, PEAK released its financial report at noon yesterday.

Seen from the 2014 financial report, PEAK is "all red".

In 2014, Peak The operating revenue of the whole year increased by 8.7% to 2.84 billion yuan, of which the operating revenue of overseas markets rose by 22.5% to 650 million yuan, accounting for 23% of the total turnover.

More concerned than the performance growth is that PEAK's profitability has been comprehensively improved. The gross profit increased by 16.4% to 1.07 billion yuan, and the gross profit margin increased by 2.5 percentage points to 38.0%; Net profit increased by 31.3% to 320 million yuan, and net profit margin increased by 2 percentage points to 11.3%.

"In the general environment of China's sporting goods market becoming more professional and segmented, only by making products more serialized, more professional and closer to consumers can we get better returns," said Xu Zhihua, CEO of PEAK Sports, "PEAK's double track harvest in domestic and overseas markets in 2014 and its best profitability in the past three years will help us to achieve our confidence in building PEAK into a professional, user-friendly and popular international brand."

However, after the financial report was released yesterday (March 11), its share price fell slightly, and by the end of today, it had dropped 0.91% to HK $2.170. (The stock market did not improve because of PEAK's good performance, but declined slightly)

Perhaps, the capital market will not be overwhelmed by the temporary good performance of sports brands, but one fact is that China sports goods Companies are trying to get rid of the inventory troubles in the past, and they are more or less ushering in a relatively sweet stage. Now, Anta, 361 Degrees and Peak have released their financial reports, and Li Ning will release them next week.