Men'S Faucet Seven Wolves Are In Peace And Danger. Strategic Pformation Is Advancing.

As a leading enterprise, the company has established an industry leading position and brand appeal. As with other enterprises, the industry in which the company is located has great development space, but it is facing the challenge of personalized trend.

Benefiting from the upgrading of consumption, the company has grown into the leader of men's clothing industry.

There are five major product lines, involving eight major product types, and the terminal channel covers seven major sales areas nationwide. Since the 2008 years, product upgrading has been accompanied by marketing upgrading, constantly enhancing market awareness and reputation, and has established a strong brand name in men's wear market.

Men's demand is relatively stable, business and leisure products are growing faster.

domestic

Steady growth in market demand. According to Frost & Suivan, in 2013 -2018 year, the annual growth rate of retail sales of domestic men's clothing market was about 14.8%. The growth rate of high-end men's clothing market was faster than that of the overall average. The business and leisure market defined by the seven wolves was the fastest growing category of middle and high-end men's clothing (business leisure, business dress 2013 -2018 annual compound growth rate of 19.8% and 14.9% respectively).

The mass brand represented by the company is facing the challenge of the personalized era.

The brand represented by seven wolves, benefiting from the upgrading of consumption, is facing up to 70 of the consumers. In the wake of the 1980s and 90, the consumption trend is changing.

After 80, especially after the 1990s, in the era of material safety, the growth of material wealth, the understanding of social forms and the experience of individuality are totally different from those of 70. These differences are converging into the mainstream trend, which has a potential impact on the rules of the game in the commercial world. The wave of personalized consumption has become a trend, but the logic of large-scale manufacturing has been running for 100 years in the commercial world, which is the seven wolves.

The core challenge.

Drawing on overseas markets, the company's future expansion will be based on the business model of capital acquisitions.

Earnings forecasts and investment proposals.

It is estimated that the net profit attributable to the parent company in the 2014-16 years is 2.41, 2.58 and 2.87 billion yuan respectively, with a decrease of 36.55%, an increase of 7.39%, an increase of 10.96%, corresponding to EPS 0.32, 0.34 and 0.38 yuan respectively.

Taking into account that the performance of the company continued to be adjusted in 2014, the expected improvement in 2015 years was related to the company's 15 year PE interval at 15x-48x, giving the company a 35xPE of 2015, corresponding to its target price of 11.96 yuan, and maintaining its overweight rating.

The main uncertainties.

Brand image licensing termination, exchange rate, order pfer risks, acquiring company synergies do not reach the expected risk.