Semir Force Cross-Border Electricity Supplier Sword Big Data

Events:

The company announced an investment agreement with ISE COMMERCE COMPANY, a Korean listed company, to subscribe for 4 million 509 thousand and 500 shares of its new issue for 17.67% yuan, making up 17.67% of its shares and becoming the second largest shareholder of ISE.

Core view:

Under the background of the signing of the FTA agreement between China and South Korea,

On the basis of development, the company's strategic investment in Korea's cross-border electricity supplier leading enterprises has far-reaching significance for the future development of the company.

ISE is a leading provider of domestic e-commerce services in South Korea. Its main business is WIZWID's website and WConcept website. Among them, WIZWID is the first site in Korea to provide cross-border e-commerce services. The market share of the Korean e-commerce market is 50%, and the WConcept website is an e-commerce platform that provides a fashion brand to the Korean market.

The electricity market share is sixth.

In the 14 year, the ISE business income is about 106 million 940 thousand yuan, corresponding to the P/S value of the investment is about 6 times, which is basically consistent with the average valuation level of the main business of cross-border electricity supplier at home and abroad.

This investment will promote the effective extension of the company's business attributes from branding business to "branding + cross-border e-commerce", and will also have a far-reaching impact on the company's long-term development and valuation level.

The most important significance of this investment is that the two sides establish a joint venture in China to jointly expand the demand for foreign brands of consumer goods in the huge Chinese market, especially when docking with the increasing demand of Chinese consumers on Korean costumes, cosmetics and other cost-effective products. From this perspective, the company will become the only Korean import e-commerce platform in the capital market.

After the acquisition, the two sides will jointly invest in a Chinese company, including Semir apparel holding. The domestic company will rely on ISE's excellent foundation in the cross-border electricity supplier field to fully share and share the huge demand of Chinese consumers for the brands of Europe and America.

We maintain the original view of the main business of the company: the gradual recovery of leisure wear and the sustained and rapid growth of children's wear will further increase the income and profit growth of the company over the past 15 years.

In the 15 year, driven by the demand for management reduction, we expect to have children's Internet platform, including the children's Internet platform, based on the company's abundant cash (around 4 billion yuan).

The investment and acquisition projects such as the Internet social networking platform will gradually become the catalyst for the company's share price.

Financial forecast and investment advice

We maintain the company's 2015-2017 year earnings per share of 2.04 yuan, 2.48 yuan and 2.97 yuan forecast, referring to brand clothing and cross-border electricity providers than the company's average valuation level, giving the company 39 times PE valuation in 2015, corresponding to the target price of 79.56 yuan, the company is our 15 year plate recommended "growth + flexible expectations" varieties, maintain "buy" rating.

Risk warning: domestic brand apparel retail terminal continues to be in low risk, and future possible industrial extension brings management challenges.

Xiaobian believes that the more challenges and opportunities, the same as Semir's "balbala strategy", Semir has been walking in the forefront of the industry, today, the big data platform, to maintain the "buy" rating is also expected.