American Bond: 2011 Launches Children'S Clothing Series &Nbsp, Preempting Children'S Wear Blue Ocean Market.

Next spring, the company will officially launch the brand of the American bond brand, which is similar to Barbara, priced below MCKids.

The brand of new children's clothing is different from that of MCkids in terms of design style. MCkids is mainly a tide boy with an adult style.

The company's new children's clothing brand is the expansion of the new children's wear shop based on cute, childlike, clothing advocacy imagination. It mainly relies on the MB company's relatively mature direct shop. The company now has about 600 MB outlets, which is conducive to the rapid expansion of the brand of the new children's wear.

We think

The city series was launched in 2011 to enhance brand image and brand upgrade.

The company's winter clothing 2011, the Urban Series (Lin Chiling endorsement Series), in the product style, material, design, development, the sense of the plane are based on the international standard.

The city series is a relatively independent series of MB. Its launch, the company hopes to spread information to the market, and the brand image of the company is upgrading.

This is also a way to cooperate with the company's brand to enter the mainstream business circle.

With the development of company brand, a series of rich brands will cover more companies.

The inventory problem will be gradually digested, improving the management capabilities of the over season products, and conducive to long-term development in the future.

Through the company's efforts over the past six months, only about 30% of the inventory in the 3 quarter was 2010 Inventory (about 900 million).

We believe that in the 4 quarter of this year, the sales of winter clothing will be substantially reduced in 2010, and will be almost digested in the first quarter or the first half of next year.

Company now

The company has more than 2000 franchisees, more than 3600 franchisees, the franchisee mode is flat, channel inventory pressure capacity is small, different management mode inventory pressure is definitely different.

The United States has a higher proportion of direct battalions, and the inventory pressure can be digested by itself.

The company thinks that the high growth in previous years will inevitably bring about problems, and the problems are slowly exposed. Now the growth rate has dropped down. Now the company needs to sort out the problems slowly and improve itself continuously in the process.

MC is a steady development, and profit is the first goal.

There are more than 500 MC shops in the company, including more than 200 children's wear and more than 200 adults, and the MC's efficiency is more than 10 thousand.

After the launch of MC2008, the company continued to lose money, and the company continued to sum up its progress in its development.

From radical expansion to steady development.

The development focus has been expanded from extension to endogenous growth.

The purpose is very clear, for profit purposes, cost expenditure will also be for profit purposes, such as advertising spending will be reduced.

Next year, the expansion rate of MC will not be fast, mainly to solve its own profit problem.

Valuation and investment advice

We expect the company's 2011-13 year EPS to be 1.19 yuan, 1.58 yuan and 1.97 yuan respectively, corresponding to the price earnings ratio of 25 times, 19 times, and 15 times.

The company is an excellent casual wear enterprise with imagination and imagination.

We are optimistic about the long-term development of the company, giving us a target price earnings ratio of 25 times in 2012 and a target price of 12 yuan for 39 months, giving the company a "buy" rating.