Beijing Toread Outdoor Sports, which is listed in Shenzhen, is a substantial shareholder of Singapore-listed Asiatravel.com. Read: ASIATRAVEL.COM: New strategic partner to help bring about profit recovery

Excerpts from analysts' reports


UBS has 'buy'' call and RMB 23.00 target for Beijing Toread Outdoors 

Analyst: Yunyun Hu

toreadstore_4.14Beijing Toread Outdoors reported sales of RMB1.45 billion in 2013. It has self-owned and franchised stores, as well as an online sales platform. Photo: Internet.
2013 net profit up sharply YoY, brand marketing expenditure higher 
Toread posted 2013 revenue of Rmb1.45bn (up 31% YoY) and net profit of Rmb250m (up 47% YoY). 
 
The profit margin expanded mainly due to lower expense ratios from the scale effect, with the selling expense ratio down 1ppt YoY to 17.5% and the administrative expense ratio down 1.4ppt YoY to 10.8%.

But the brand marketing expenditure (advertising and promotional expenses) increased 50% YoY, which should improve long-term competitiveness, in our view. 
 
toread_davidtanksToread advertising is seen on the side of this helicopter at Everest base camp. Photo by David Tan Kim SengQ114 net profit up 32% YoY 
Q114 revenue was Rmb320m (up 16% YoY) and net profit came to Rmb77.7m (up 32% YoY). Amid a weak retail environment overall, we believe Toread will actively optimize channels and upgrade stores by enhancing shopping experience and improving interactive services etc. Backed up by online sales, its revenue growth may pick up gradually.
 
New platform to be launched, service + product synergies expected 
On 18 April, Toread will officially launch “lvye.com” as its comprehensive service platform for its high-end global outdoor travel business.

There will be over 150 online suppliers providing more than 300 tourist lines initially. The company, together with its 
affiliated ivye.cn, will also roll out the TOP tour guide scheme, which aims to recruit tour guides as its C-store owners.

As we stressed in our report dated 10 April, we think Toread’s online tourism service and outdoor product sales could produce synergistic effect more rapidly, thanks to the social nature of outdoor activities.
 
Valuation: Maintain Buy rating and Rmb23 PT
We derive our price target of Rmb23 using UBS’s DCF-based VCAM tool (7.5% WACC). 

toread_ubs4.14

You may also be interested in:


You have no rights to post comments

Counter NameLastChange
AEM Holdings3.310-0.040
Avi-Tech Electronics0.255-
Best World1.660-0.010
Broadway Ind0.075-
China Sunsine0.400-
ComfortDelGro1.280-0.010
Delfi Limited1.240-0.030
Food Empire1.1000.040
Fortress Minerals0.335-
Geo Energy Res0.225-
GSS Energy0.033-
Hong Leong Finance2.470-0.030
Hongkong Land (USD)3.410-0.090
InnoTek0.4200.015
ISDN Holdings0.380-0.010
ISOTeam0.043-0.001
IX Biopharma0.046-0.004
Jiutian Chemical0.032-
KSH Holdings0.315-
Leader Env0.070-0.002
Medtecs Intl0.145-0.003
Nordic Group0.415-
Oxley Holdings0.104-0.003
REX International0.186-0.014
Riverstone0.590-
Sinostar PEC0.140-
Southern Alliance Mining0.670-
Straco Corp.0.440-
Sunpower Group0.295-
The Trendlines0.095-
Totm Technologies0.047-0.001
Uni-Asia Group0.950-
Wilmar Intl3.690-0.040
Yangzijiang Shipbldg1.7400.070
 

We have 588 guests and no members online

rss_2 NextInsight - Latest News