招商证券*港股研究*Ports(00589.HK)-Better-than-expected result, growing momentum remain*00589**赵晓

报告名称：Ports(00589.HK)-Better-than-expected result, growing momentum remain
研究员：赵晓
报告类型：港股研究*公司报告
报告日期：20110331

行业/子行业：
公司名称及代码：宝姿(00589)
投资建议：买入

【内容摘要】

Ports Design Ltd. ("Ports" or the "Company") announced its FY2010 annual results. After three & half years retail network repositioning program, the Company was finally back on the growing stage at the end of 2010. During the year, the Company's revenue increased by 11.7% to RMB1.7bn. The gross profit & net profit was up by 8.4% & 1.0% to RMB1.4bn and RMB473.1mn respectively. Basic EPS was up by 1.2% to RMB0.84. The board declared final dividend of RMB0.24 per share. Based on the guidance of SSSG and store counts, we revised up our earning estimation, and expect a CAGR of 27.6% in revenue over 2011-2013. We upgrade the rating to "BUY" with 1 yr TP of HKD22.46, representing 18X2011P/E.

Double-digit growth in both SSSG and stores count in 2011 The retail revenue recorded a growth of 10.1% to RMB1.6bn, supported by 7% ASP increase in FY2010 & a double-digit growth in SSS. Under the repositioning program, the Company opened 65 new stores & simultaneously closed 68 stores, which made up a total store count of 353 in 2010. After completing the program, the Company recorded SSSG of 15.6% & expected similar growing trend to be maintained in future, as well as a double digit growth of stores count.
JV of Vivienne Tam has been terminated The Joint venture of Vivienne Tam has been terminated during the year because of the lower performance expectation. The closing down didn't has material impact to the Company financial data, since the Company took conservative accounting approach & all the possible expenses has been taken in the first year of JV business started.
Expenses increased in the moderately rate Distribution expenses up by 11.4%, due to the repositioning & upgrade of brand positioning, the A&P increased from 2.9% to 3.3% in 2010. Also the effective income tax rate will continue to increase. The tax rate guidance from the Company is around 17-18% for the following 3 yrs.
Outlook Looking forward, the Company will focus on improving product mix, in terms of increasing momentum from Menswear & development of non-apparel goods such as fragrance. Also, the Company is going to introduce a sub brand P61, a younger collection aimed to attract a broader consumer base in the future.


【摘要结束】