Main Points Of Haining Leather City Research Report

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< p > > the company announced three announcements today: 1) it is proposed to invest in the establishment of < a href= "http://www.91se91.com/news/index_c.asp" > Leather > /a > City Guarantee Corporation, with a registered capital of 100 million yuan, which is invested by the company in full cash and used to relieve leather city a http:// "http:// www.91se91.com/news/index_s.asp" > market < /a > the financing difficulties of merchants; 2) the lighthouse Tong Second Fort company holding subsidiary company intends to develop and build Tong three Fort Haining Leather City three phase project, the total construction area is 210 thousand square meters, the total investment is about 814 million yuan, and the construction cycle is 2 years.

3) the company authorized the Hubei Jin Lian to use the "Haining leather city" name in the "Galaxy business" complex of the galaxy. The brand franchise time is 2013-2027 years, and the franchise fee is 30 million yuan / year.

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The three phase of < p > Tong Er Bao includes: 122 thousand and 600 square meter brand living hall, 53 thousand and 800 square meters Pioneering Park and 34 thousand square meters business office.

The brand life hall will be fully leased. The estimated annual rent is 800 yuan / square meter (the unit price of the building area). The business park and the commercial office building will be sold. The selling price is expected to be 6000 yuan / square meter and 4000 yuan / square meter respectively. If the business starts in the 4 quarter of 2014, it will increase 2014-2015 yuan, 24 million 520 thousand yuan and 98 million 80 thousand yuan respectively, and the sales revenue will be increased by about 459 million yuan in 2015.

We estimate that the planned rental price of the project is close to the 5 phase of the brand life hall rent and the 3 property price, respectively. < a href= "http://www.91se91.com/news/index_cj.asp" > price < /a > is more reasonable.

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< p > this authorization is the exclusive authorization of the company in the province of Hubei.

We believe that: 1) due to the fact that Wuhan is under construction and the original leather and fur market has already begun to take a certain scale, some of the fur market names are similar to the brand names of the company. The company has entered the Wuhan market with the right of trademark access. It is an important measure for the company to prevent brand infringement and enhance its brand influence; 2) the galaxy project is located in Hanyang District, which is closer to the downtown area, plus 180 thousand square meters of commercial volume, and has a higher degree of agreement with the company's size. 3) thanks to the brand agreement, 2013-2027 years, the company will add 30 million yuan to the annual membership fee, and the annual performance of the company is expected to be 0.04 yuan.

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< p > we believe that the company's 2012-2014 years of new projects will ensure that the company's revenue growth will last at least until 2015. Thanks to the company's more stable profit model and strong brand investment capabilities, the expansion of the company's scale can be quickly pformed into profit growth. We can judge that in 2012-2015 years, the company can enjoy higher performance certainty.

Taking into account the company's rapid growth and high performance certainty, we believe that the company is a relatively scarce growth product in the retail industry at present. In the short term, the company will not encounter expansion bottlenecks, and it can enjoy a certain valuation premium. We expect that in the 2012-2013 years, the company's EPS will be 1.25 yuan and 1.77 yuan respectively (considering the 13 year's performance of 0.04 yuan / share) of the new affiliation fee increase. The corresponding growth rate is 33% and 42% respectively, corresponding to the current stock price, PE is 20 times and 14 times respectively, so as to maintain the recommended rating for the company.

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