It Has Strong Profitability And Strong Growth Potential.

Mei Xinda

Recently, this station reporter Mei Xin Da company conducted a telephone survey and reached the following conclusions:

The company's product mix and capacity.

The company's current business is composed of two major businesses, textile and printing.

In terms of business, the corduroy production capacity of the company is close to 10 million meters, which has shrunk after 06 years, but it resumed in 2012 and 2013. The current production capacity of gaukas is about 50 million meters.

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The company currently has a capacity of 66 million meters for printing and dyeing, such as linen, linen and Tencel.

The company is positioned in the middle and high-grade printing and dyeing business, and the price rise of dyes has no effect on the profitability of the company.

At present, the company is positioned in the middle and high-grade printing and dyeing business, not only pursuing quantity but paying attention to controlling the profitability of each meter.

Dyestuff currently accounts for about 20% of the cost of printing and dyeing production. According to the company's introduction, although the price of dyestuff material has increased by about 10% after the Spring Festival, the performance of the company is more sensitive to the fluctuation of cotton price.

The pmission effect of cotton price increase is stronger than dye price increase, so the company will consider two points in the face of dye price increase: first, the situation of order quantity; second, the acceptability of customers.

Overall, dye price increases have little impact on the profitability of the company.

The 13 year performance appraisal goal is expected to be achieved.

The company's restrictive stock incentive plan for 2013 performance assessment is that this year's net profit growth rate of more than 20% over the year; ROE growth rate of more than 15%.

We believe that the demand for foreign goods is getting warmer this year. The printing and dyeing industry has slightly declined in output compared with the same period. However, the profitability increased year by year. It reached the level of prosperity in the 7 and August of last year. It is not difficult to achieve the goal of performance appraisal this year.

And investment rating.

Through the above analysis, we expect the company's -2015 EPS in 2013 to be 0.31 yuan, 0.40 yuan and 0.49 yuan, giving the investment rating of "overweight".

The profit outlook of the company is clear. Investors can pay attention to it and make favorable investments.