The Pathfinder Funded And Supported Arkeno's Efforts To Improve The Multi Brand System.

　　 Pathfinder The company will provide financial assistance to the Beijing subsidiary of arkeno outdoor products Co., Ltd. with a shareholding ratio of 75%, which is not more than 10 million RMB, and charge interest at the benchmark lending rate of the bank (market area) at the same time to meet the needs of brand development and to reduce its financing cost.

　　 Improve multi brand system and penetrate into multi-level market

In order to meet the needs of more consumers, the company has extended to the high-end outdoor leisure market on the basis of the original core brand "Pathfinder", focusing on the Discovery Expedition series of outdoor activities such as self driving and off-road activities, and the ACANU brand, which is mainly focused on outdoor cycling area, and mainly based on the Internet e-commerce outdoor consumption market. The three major brands complement each other in brand positioning, design style, target customers, market segmentation, etc., to further cover the target consumer group, further enhance market share, and achieve product penetration into multi-level markets.

　　 Arkeno Brand is currently in brand cultivation period, and has yet to break even.

The "arkeno" brand was launched in 2012, and is still in the brand cultivation period, and it is still in a deficit for the first half of 2013. In 2012, arkeno achieved operating income of 1 million 50 thousand yuan, net profit of -159 million yuan, and operating income and net profit in the first half of 2013 were 720 thousand yuan and -104 million yuan respectively.

stay Garment industry It has taken 3-5 years for the new brand to emerge from the market to be recognized and realized by the market. "Arkeno" brand has identified the brand positioning of "outdoor riding", and has achieved initial results through the cycling events and other activities in promoting the riding culture among college students and young people. It is expected that the sales of "arkeno" brand will reach a breakthrough in 2014.

　　 Electricity supplier momentum is fast, is expected to become the highlight of next year's growth.

The company has a positive layout in the business of e-commerce, with remarkable results. The proportion of business income in operating revenue has been rising. From 2% at the end of 2010 to 14% in the middle of this year, the annual compound growth rate of the electricity business is 93%. It is estimated that online revenue will reach 300 million yuan this year, and the proportion of business income will rise to about 18%. Next year, the electricity supplier is expected to reach 30%. "Double eleven" is an important symbol of the electricity supplier business. This year, the sales volume of double eleven flagship stores reached 78 million yuan, up 236% from the "double eleven" in 2012, and the sales volume of 10 million yuan was increased by 10 times compared with the same period last year.

Company online Channel construction The phased results include: 1) 8 major platforms have been admitted: Taobao, Jingdong, Dangdang, excellence, pat, 1, excellent purchase and post music; more than 300 online distributors have been developed; 2) the online authorized stores of the franchisees are 23. Next year, franchisees' online licensing stores will increase, which is expected to reach 50, and further expand the company's online channels. The order will release the next year's performance signal. It is estimated that the 25%-30% revenue growth level will be achieved in 2014. The leading edge of the company will ensure that the company is higher than the average growth rate of the industry. In July, spring and summer ordering meeting held in 2014, the total amount of futures orders totaled 780 million yuan (including orders from business franchisees, various direct battalions, group customers, e-commerce, outdoor special canal business units), which increased by about 20% compared with the actual futures orders in 2013 and 2014. We expect that the order for 2014, autumn and winter in January will increase by 25%. At present, the outdoor industry is in the initial stage as a whole, but in the next 2-3 years, the industry growth and adjustment coexist. The industry growth is expected to be 20%-25% next year. As an outdoor brand leader, the company has prominent advantages and coordinated development on line and line. It is expected that the growth rate of the company next year will be higher than that of the industry.

Give "recommended" rating. The company's earnings per share in 2013 -2015 are 0.54 yuan, 0.71 yuan and 0.90 yuan respectively, corresponding to the current stock price PE 29, 22 and 17 respectively. The net profit attributable to the parent company is 230 million, 300 million and 380 million respectively, and the compound annual growth rate of 2012-2015 year net profit is 33%. Give the company "recommended" rating.

Risk factors: (1) industry competition intensifies the risk of company profitability; (2) the execution rate of futures orders is lower than the expected risk; (3) the new business model does not meet the anticipated risks.