The "Signs" Of The Performance Of Capital Raising Subsidiary Of The Nine Mu Wang

Recently, the nine herd king company's daily announcement is to use its own capital of US $100 million to increase capital for the wholly-owned subsidiary of Cci Capital Ltd. After the capital increase, the company will be the main body of overseas investment, optimize the investment structure of the company and promote the company's strategy implementation. On the other hand, it will strengthen the links and cooperation with the international fashion industry, and provide support for the company to build an international brand operation platform, improve brand operation ability and commodity R & D capability.

In response to challenges, the company has actively explored and made active changes in recent years. 1) in order to cope with the decline, we should actively explore the transformation of franchising business in addition to improving the franchisee's management ability in commodity management and retail management; 2) integrate the online and offline integration as an important strategic development direction in the future, start the O2O project in 14 years, and 3, respond to the changes in consumer demand, and further clarify the requirements. Commodity strategy Import commodity planning system and process to achieve full merchandise. value chain Administration.

The company's recent performance is steadily improving, and it is expected to rebound in the next 15 years. In the 14 quarter of spring, summer and autumn and winter, the sale rate of goods in the two seasons of the company is expected to be slightly better than 13 years, and the terminal inventory pressure has gradually improved. The number of direct sales in the same store is expected to continue to maintain a single digit growth rate so far. Although shipments have been affected by the decline in the purchase order in the 15 year spring and summer order, we expect that the order volume of the 15 year autumn and winter orders will be positive growth. Therefore, the shipment in the second half of this year is expected to improve.

We are optimistic about the future landing of the company in merger and consolidation. Although the company terminated the framework agreement with Lang Ken in 14 October, it invested 800 million in the same time. Tibet area A wholly owned subsidiary was set up to manage the company's assets and capital operation. The subsidiary invested 200 million of its 68 million securities in the month, plus the recent capital increase. We are optimistic about the company's future merger and consolidation projects.

We expect the company's earnings per share for 14-16 years to be 0.74, 0.83, and 0.97 yuan respectively (the original forecast for 2015 and 2016 was 0.88 yuan and 1.08 yuan), referring to the PE valuation level of the average 36 times of the comparable company, and taking into account that the company has not yet established the industry fund or the merger and acquisition integration behavior as the other higher valued companies, so the average discount of the company's industry is 25%, giving the company 15 times 27 times PE, and the target price is 27 yuan, maintaining the overweight rating.

The risk of domestic economic recovery is slow, and the effect of corporate change is less than expected.