AOKANG International Betting Cage To Explore New Growth Points

In recent years, Skech has been developing rapidly in the Chinese market and its products are very popular.

AOKANG international has signed Skech, the second largest shoe brand in the United States.

AOKANG announced a strategic cooperation framework agreement with SKECHERS (Cage) general distributor in mainland China.

In the US market, it is the second largest footwear brand after Nike.

Its more than 3000 shoes, which cover different needs, are mainly divided into two series: leisure life series and sports functional series.

In 2014, sales reached $2 billion 400 million, an increase of 28.7% over the same period last year.

Sales in the first quarter and second quarter of 2015 were 768 million and 801 million, up 40.5% and 36.35%, respectively.

Skech has been developing rapidly in the Chinese market in recent years, and the products are very popular.

Skech entered the Chinese market in 2007. By the end of 2008, Skech had 91 stores in China. As of now, the number of shops in China has reached 750, showing a trend of rapid growth.

This is mainly due to the company's highly characteristic products and the precise grasp of the rise of the running market.

The company will open about 1000 Cage stores in China in the next five years.

The cooperation is mainly based on the company's two or three line.

The channel has a very strong advantage, and this is also the market that Cage needs to focus on in the future. Cage is currently a second-line shopping center and department store channel. Besides, the two companies will carry out all-round cooperation in brand resources and other aspects. Taking into account the substantial growth of Cage's domestic sales and the price positioning of 400-800 yuan, we have reason to be optimistic about the development of Skech's stores in the future, which is expected to become a new profit growth point for the company in the future.

We are optimistic about the company's annual net profit growth of nearly 50%.

First, the effect of the International Pavilion model is remarkable, and the number of new shops is estimated to be around 200 in the whole year. Secondly, accounts receivable will gradually decrease, and asset impairment losses will be substantially reduced compared with 14 years. Third, the implementation of the first phase implementation of the ESOP will further boost confidence and motivation. Fourth, the strategic investment Lanting Pavilion will gather together, and will jointly build the traditional industry "Internet + strategy" in the future. Fifth, distribution of Si Cage, continue to layout around the shoe industry, and explore new growth points of performance.

Financial forecast and investment advice.

We expect the company to share 2015-2017 years

They were 0.95, 1.06 and 1.24 yuan respectively, referring to the average valuation of comparable companies, maintaining the company's 37 times PE in 2015, corresponding to the target price of 35.15 yuan, maintaining the "buy" rating.

We believe that the deep cooperation between AOKANG international and Cage will greatly promote the development of the company.