Kim Feida Clothing Limited By Share Ltd: Future Focus In Wind Power

Jiangsu Limited by Share Ltd Feida clothing Limited by Share Ltd is mainly engaged in the production and sale of women's clothing. More than 95% of its products are exported to the United States. Economic crisis In the second half of 08 years, the profit declined significantly. According to understanding that the company's current orders are picking up gradually compared with the first three quarters, orders for three major producers, Kim Feida, Kim fexiang and Jin Feiying, have been released to the end of 09 or even before the Spring Festival, but the price and structure of the order have yet to be improved. It is estimated that the export recovery will take place in the second half of 2010.

As a pure Foundry Enterprise The company has also been actively seeking to adjust its business strategy. We believe that the future of the clothing industry will focus on two points: (1) the transformation of sales strategy, leaving the importers in the middle, directly facing the sales customers to gain higher profitability (2) to win the opportunity of their own brands. The company currently holds nearly 300 million of the proceeds and has no liability at all, and has the potential to acquire foreign brand clothing enterprises in the future.

The biggest attraction of the company lies in the field of wind power equipment. 28% of Nantong's Hongbo wind power has entered a profit period in 2009, and will expand its capacity in the future. The company may share the investment income of steady growth.

In addition to the company's participation in wind power enterprises, the company's controlling shareholder, Jiangsu Diao holding group, has recently established a joint venture with Guangdong Mingyang wind power group, which is the top five in the country, to set up Jiangsu Mingyang Wind Power Technology Co., Ltd., including Jiangsu's Austrian holding group holding 40% shares. The joint venture is mainly engaged in the production and sale of wind turbine mainframes and blades. It is expected that the products will be formally released in April 2010. We believe that Jiangsu Mingyang Wind Power Technology Co., Ltd. can share the mature technology and management experience of Guangdong Ming Yang (also has successful experience in offshore wind turbines), and share natural wind power resources and good sales protection in Nantong. Recently, Mingyang signed the first phase 3 million 150 thousand kilowatt agreement with the four power generation groups and Nantong, so the future business prospects are very promising. According to caution, the investment income of controlling shareholders from Jiangsu Mingyang in 2010 will reach 09 years' profit level of the stock company.

As the only listing platform under the group, we believe that the company will not rule out the possibility of obtaining more wind power business resources in the future, which will be a qualitative leap for the company's current capital stock, business attributes and scale of profit.

　　 investment risk The uncertainty of Jiangsu Mingyang wind power business investment and earnings and whether the controlling shareholder of the company will inject 40% equity into the company.