Expert Analysis: The Value Of Big Stocks Of Hong Kong Stock

It is the only trademark strategy implementation demonstration enterprise recognized by the State Administration of industry and Commerce in China. The brand strength and value of red bean are all in the leading position in China's textile and garment industry.

In June 2015, the world brand laboratory announced the top 500 list of China's most valuable brands, and the red bean brand was among the top 100 brands.

Core view:

1. incident

The company released its annual report 2014: 14 annual revenue 2 billion 824 million, an increase of 18.71% over the same period, gross margin of 21.58%, a decrease of 3.44pp, net profit of 66 million yuan, an increase of 36.72% over the same period, and a 689 million yuan of operating cash flow, a decrease of 14.57% over the same period last year.

According to the business split, the men's clothing chain revenue as the main business in the future is only 979 million yuan, an increase of 6.24% compared with the same period last year, and the gross margin is 25.54%, down 3.77pp compared with the same period last year.

Real estate business revenue reached 1 billion 681 million yuan, an increase of 29.88% over the same period, and gross margin was 20.80%, down 1pp compared to the same period last year.

After roughly dividing the contribution of net profit, we estimate that the contribution of financial companies and small loan companies to net profit is about 16 million yuan, and the contribution of real estate business to net profit is about 32 million yuan.

The overall profit contribution of the business is about 18 million.

2. our analysis and judgement

(1) the main income of men's clothing industry has not reached the ideal growth rate, and the gross profit is under pressure.

The growth rate of the company's main industry for 14 years is not ideal, the growth rate of income is lower than that of the previous year (6.24%), and the gross profit margin still presents greater pressure (25.54%, down 3.44pp compared with the same period).

This data basically conforms to our previous judgment on the location of the company's business pformation.

Under the current business framework, the arrival of the turning point of performance needs to wait for the existing mode to run smoothly, and it needs to accompany the expansion of stores to form a certain scale effect in quantity. Then we can expect the inflection point of performance. We expect that this process will take at least half a year to a year.

(two) accelerating the recovery of real estate business and forming a certain pressure on profit margins.

According to the company's strategic positioning, joint-stock company's real estate business will continue to shrink.

The volume of corporate real estate revenue and the drop in inventory and receivables of the real estate sector are in line with this strategic trend.

But accelerating the recovery of real estate business will bring certain pressure to the profit rate of the whole real estate business. The gross profit margin of real estate business will be 20.80% in the 14 years, down by 1pp compared with the same period last year, the lowest value in recent years.

Investment advice:

Whereas

Business data have not yet shown signs of approaching inflection point. We propose to track quarterly progress in the pformation process from the financial data.

The company's share price has risen by over 45% since the beginning of the year. In the absence of catalyst in the short term, we recommend investors to cash in on their earnings and downgrade the company's rating to "prudent recommendation".

Risk warning:

The company's progress is lower than expected, and men's business pformation is less than expected.

Expert tips:

Main business turning point still needs to wait, short term stock price lacks effective catalysis.