YOUNGOR: Brand Clothing Exceeds Expected &Nbsp; Valuation Has Great Advantages.

Channel integration and brand remodeling, brand clothing back to the rising channel. The company's current brand clothing business mainly includes clothing domestic sales (revenue accounted for 77%), a small number of clothing exports and Wool spinning Business. According to this caliber, income and net profit in 2010 increased by 14% and 51% respectively. It is expected that in the mid 2011, brand clothing revenue and net profit growth will exceed 25% and 30% respectively, and annual performance growth is expected to be higher.

　　 Brand clothing The competitive advantage is outstanding and will accumulate in the future. The company's products are fully self-produced and the supply chain is highly efficient. The market share of suits and shirts has been the number one for many years. The direct proportion of retail terminals is nearly 80%, the risk of channel is low, and the profit is strong. With the increase of scale, the cost of each link will be diluted, and the profit growth is expected to be significantly higher than that of income growth. It is expected that the brand of YOUNGOR (9.87,0.00,0.00%) will maintain 10% of the channel expansion speed and strengthen fine management (14 thousand yuan in 2010, 36% higher than 07 years), and the subsidiary brands have entered a fast expanding profit period.

Men's clothing industry restores vitality and provides opportunities for the development of the company. The market capacity of men's formal wear and business casual wear in 2011 is estimated to be 193 billion yuan. At present, the industry structure is relatively stable, and the mainstream brand has obvious advantages. Urbanization and Formal wear Under the trend of leisure and fashion, the industry restores vitality. In 2011, the expansion of men's clothing company is full of momentum and the trend of consumption upgrading is strong. The average premium is expected to exceed 40%.

Risk factors: 1, high inflation, consumer confidence decline if sustained, the company's brand clothing sales will be affected; 2, strict real estate regulation strategy, the company's real estate prices may fall. The value added tax payment on land may lower the net profit of real estate than expected; 3, the value of financial assets fluctuates. {page_break}

Earnings forecast, valuation and investment rating: because of the brand clothing exceeding expectations and the progress of real estate settlement, 11, 12 and 13 years of EPS forecast (excluding investment income) were adjusted for 0.67, 1.23, and 1.54 yuan (brand clothing 0.40, 0.53, 0.68, real estate 0.27, 0.70, and 0.70). According to the 2011 brand clothing 25 times, the real estate 5 times PE, plus the financial floating profit tax deduction net value 1.67 yuan, the company value is 13.11 yuan. The brand clothing value of the company is not fully reflected in the stock price, and the real estate and financial value also has room for improvement. Therefore, the rating is increased to "buy".