Haining Leather City: Developing Internet Financial Business And Perfecting The Leather Market Industry Chain

Internet financial companies will use Internet tools to explore financial products and services such as bond raising, equity raising and return to public financing, so as to provide convenient financing channels for small and micro businesses or enterprises, especially leather traders, and provide convenient financial services for the public.

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The development of Internet Finance Based on industrial foundation is conducive to the improvement of industrial chain and the expansion of profit space.

We believe that the company has the advantages of developing Internet financial business: first, the company has the influence of leather industry foundation, entity network, business customer group, and its influence in the professional market. The market merchants have higher financing demand and financial demand; secondly, the company owns 1 billion 300 million cash, and in 2012, to ease the pressure of leather merchants' capital and invest in the establishment of Guarantee Corporation, it has strong financial service management experience.

Third, the members of the proposed partnership, Su Jian and the new company management team, all have doctoral or master degrees in higher education institutions such as the people's Bank of China (micro-blog) Graduate School, Tsinghua University, Peking University and Wuhan University [micro-blog], and are engaged in credit risk management in banks or investment banks.

Investment and financing business for more than 8 years.

The launching of the Internet financial company is an important step for the company to implement the connotative development strategy. It is conducive to the improvement of the existing industrial chain, the promotion of the company's industrial upgrading and the enhancement of the competitiveness and influence of the company in the capital market.

At the same time, the Internet financial business will help to expand the profit margin of the company, and the income and profit will be included in the consolidated statement according to the proportion of paid capital contribution.

The logic of company growth remains unchanged.

The focus is on the performance improvement brought about by the extension of the 15 years.

The company is the monopolist of the leather professional market, and its core competitive advantages are outstanding: stable customer resources, and the power to expand in the extension, ensuring the monopoly position of the company.

The company is still in its growth stage, rich in hand projects, with reserves in Urumqi, Ji'nan, Tianjin, Beijing and Zhengzhou.

The future of the company is mainly due to the improvement of profit brought by the extension of the 15 years.

On the one hand, the new Harbin market opened in the 14 year and the three phase market of Tong Er Bao brought about the confirmation of the growth of the rental revenue and the sales revenue of 259 million yuan in 2015. On the other hand, the company is rich in hand projects. We expect a total of 265 thousand square meters of Urumqi (115 thousand square meters) and Ji'nan (150 thousand square meters) project to open in 2015, which will ensure high performance and sustainable growth in the next 3 years.

We believe that investment in the establishment of Internet financial companies is conducive to the extension and improvement of the industrial chain and the expansion of new profit margins, which is conducive to the improvement of company valuation.

Coupled with the certainty of incremental expansion in the new market in 2015, we will maintain a "buy" rating in the next three years.

We will not change earnings forecasts for the time being. Earnings forecasts, earnings forecasts and earnings forecasts are 14-16 EPS, 1.10 1.10 yuan, 1.36 1.36 yuan and 1.60 1.60 yuan respectively, corresponding to PE 12PE 12PE 12PE 12PE 12 times, 9 times, 8 times.