Mei Bang Clothing - Leisure Wear Leading Enterprises

Mei Bang dress is a dominant enterprise in the domestic casual wear industry. It has grown from a small garment processing factory 10 years ago to a brand retail enterprise with high brand awareness, nearly 500 suppliers and more than 2000 sales channels.

The success of the company comes from its business mode that does not take the unusual path: to completely outsource production and rely on the rapid expansion of franchisees, and to focus on product design, brand maintenance and upgrading, and internal management based on information system and supply chain management.

The unique light asset operation mode has saved the company a lot of money, and realized its faster development on the basis of less time and less fixed assets. At the same time, it has gained more profitable links in the industrial chain.

Since its establishment, the rapid growth of the company has not only taken its unusual way of operation, but also positioned its Volkswagen and young fashion brand to the current consumption situation of Chinese society.

In the 08 year August, the brand new Me&City brand will become a new product that the company tries to brand diversification and brand promotion. It is also likely to shape the company's products into a brand of "wheat fashion" that is suitable for the development trend of Chinese society.

On the basis of not taking the unusual road business mode and precise brand positioning, through the rapid expansion of the channel, the company has achieved rapid development, especially in the past three years, the financial indicators showed a jump growth, and the compound growth rate of sales revenue was 86%.

While sales revenue maintained rapid growth, gross profit margin continued to rise, which directly led to explosive growth in profits. The compound growth rate of the company in the past three years was as high as 604%.

We believe that compared with other domestic garment enterprises, the competitive advantage of the American Apparel Company is mainly reflected in the brand management mode and strong upstream and downstream resources integration capability that is ahead of the peers, which is specifically manifested in brand influence, product design ability, marketing network advantages, supply chain management capabilities and information system management advantages.

Of course, the company needs further improvement in terms of product quality control capability, channel stability and richness, the advanced nature of information system, and the enhancement of brand connotation.

The fundraising fund is mainly invested in two projects: "marketing network construction project" and "information system construction project".

We believe that the former is conducive to the encryption and structural optimization of the company, and the increase of the sales revenue of the company, which is conducive to the enhancement of the brand image and influence of the company, and also helps the company to seize the scarce shop resources, and is in line with the strategic development trend of the company.

Although the latter will not bring direct income and profits, the implementation of the project will play a very important role in the subsequent development and comprehensive competitiveness of the company. In the long run, it will be reflected in the promotion of the company's financial indicators.

According to our forecast, the compound growth rate of the company's revenue in the next three years will be around 35%, and the compound growth of net profit will be around 43%.

Taking into account the company's business characteristics, future earnings growth and the valuation of apparel brands in the same industry, we believe that the company's reasonable valuation is based on 08 years' profit, which is 35 to 40 times more suitable, and the corresponding reasonable stock price is between 31.15 and 35.20 yuan.

The investment risk of a company comes mainly from the influence of macro regulation and inflation on consumption.