Text | Jin Wei

April fifteenthZhou DashengThe share price fell by the limit at 9:50, which lasted for more than ten minutes, then pulled back in intraday trading, but as of press time, Zhou Dasheng still fell more than 9.6% to close at 32.3 yuan, with a total market capitalization of 23.5 billion.

Zhou Dasheng fell by the limit, which puzzled shareholders very much. In the scale of Zhou Dasheng shareholder group, some investors said that killing a white horse a day, feng shui turns, today it's the jewelry leader's turn?

Surprisingly, on the evening of April 14, Zhou Dasheng just issued a performance forecast. It is estimated that the net profit attributed to shareholders of listed companies in the first quarter of 2021 is about 231 million yuan to 241 million yuan, an increase of 130% to 140% over the same period last year.

With regard to the sharp increase in performance, Zhou Dasheng said that in the same period last year, the company's business was greatly affected by epidemic factors, and its operating income and profits decreased greatly, and gradually returned to normal after the epidemic slowed down. the company has maintained the good development momentum since the second half of last year, and the company is in good condition in the first quarter of 2021, and its business performance is expected to grow by a large margin compared with the same period last year.

After the release of the performance reportNortheast SecuritiesZhou Dasheng was given a buy rating with a target price of 38.94 yuan. the reasons for the rating mainly included the gradual weakening of the impact of the epidemic, the quarter-on-quarter improvement of performance growth, and the gradual adjustment of stores out of the impact of the epidemic.

Zhou Dasheng is mainly engaged in the design, promotion and chain operation of "Zhou Dasheng" brand jewelry, and is one of the largest jewelry brand operators in China.

In 2020, affected by the epidemic, Zhou Dasheng's operating income was about 5.084 billion yuan, down 6.53 percent from the same period last year; the net profit belonging to shareholders of listed companies was about 1.013 billion yuan, an increase of 2.21 percent over the same period last year.

At present, Zhou Dasheng's main business is joining, Internet (online) and proprietary (offline), accounting for 51.29%, 23.12% and 19.87% of revenue respectively. By the end of 2020, the number of Zhou Dasheng terminal stores reached 4189, including 3940 franchise stores and 249 self-owned stores. Affected by the epidemic in 2020, Zhou Dasheng opened a net 178 stores throughout the year, and the speed of opening has slowed down. A big reason is that many franchise stores are closed.

In 2021, Zhou Dasheng said that he would strengthen regional market unit planning, formulate more realistic policies and incentive support, and implement the policy of one district, one city and one store. Increase the intensity of opening stores in high-end shopping centers, give franchisees shop opening and public relations support, and steadily promote the store opening strategy.

Prior to media reports, the price of the same product online is more than half cheaper than offline. In this situation, online will easily seize the market share of offline channels, while online flagship stores are the company's own stores, and the profits and losses of offline self-owned stores are borne by the company.

In response, Zhou Dasheng responded that online shopping is more affordable because of the lack of face-to-face service and store experience for store staff, which is recognized by consumers. Zhou Dasheng adheres to the business philosophy of mutual benefit and win-win with the franchisee, "and the franchisee is the main body of our channel, so it is more in the interests of the company to safeguard the interests of the franchisee."

It is understood that Zhou Dasheng brand royalties are collected by offline franchisees, and more than 50% of the company's revenue comes from the franchise fees and product price differences collected from franchisees. Offline franchise stores are affected by the epidemic and the network, which is obviously disadvantageous to Zhou Dasheng's revenue growth.

It is worth mentioning that Zhou Dasheng is an institutional heavy stock. By the end of last year, 251 institutions held positions, with a position proportion of 83% and a market capitalization of 16.1 billion. Among Zhou Dasheng's top ten tradable shareholders are social security funds, public offering funds and so on.

At the same time of the decline in performance growth, Zhou Dasheng has been repeatedly reduced by senior executives and important shareholders. According to Wind statistics, from the beginning of 2020 to now, the company's executives and important shareholders have carried out a number of reductions, a total of 52.284 million shares, involving a total amount of 1.139 billion yuan. Over the past year, Zhou Dasheng's share price has risen by about 80%.

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