He Will Create High Fashion To Drive Production And Marketing Scale Up.

With the increasingly fierce competition in the clothing market, the famous clothing brand, Song Li Si, decided to build high fashion, and constantly expand the brand pool, which will help to promote the scale of production and marketing.

The net income of the company in 2015, the net profit attributable to shareholders of listed companies, net cash flows from operating activities and EPS were 835 million, 160 million, 166 million yuan and 1.08 yuan / share, respectively, with 12.28%, 15.82%, -2.19% and -6.09% respectively.

Profit distribution plan: Based on the company's current total share capital 166 million shares, distribute cash dividends to shareholders 10 yuan per share (2.6 yuan (including tax)), distribute cash dividends 43 million 68 thousand and 700 yuan, and increase 5 shares to 10 of all shareholders by capital reserve fund, and add 82 million 824 thousand and 400 shares to 82 million 824 thousand and 400 shares.

Net income in the first quarter of 2016, net profit attributable to shareholders of listed companies, net cash flow from operating activities and EPS were 180 million, 23 million 824 thousand and 100, 13 million 240 thousand and 200 and 0.14 yuan / share, respectively, with an increase of 0.64%, -29.42%, -80.52% and -50.00%.

Brand pool expansion to boost production and sales scale

The song is already in advanced.

Field layout: the following line is the high-end ladies' brand "Ellassay", the German senior women's clothing brand "Laur L", the American light luxury brand "EdHardy" and the online advanced brand "With Song".

The company's future strategic goal is to grow into "China high fashion group". It aims to share the brand management experience, channel resources and operational experience of GEIs for many years, through sharing a large VIP group (by the end of 2015, the number of direct customers is VIP, the number of customers has reached 80 thousand), so as to achieve the goal of multi brand collaborative development.

The company plans to explore high potential fashion brands through new ways and acquisitions, and increase the number of well-known brands, so as to enlarge the market influence of external brands and the existing brands of the company and achieve effective expansion of the business layout.

The introduction of external brands, on the one hand, brings new brand promotion, channel and customer resources to the company's main brand "Ellassay". On the other hand, through accumulating resources and experience in various fields, the company will provide strong support to the imported brands for their development, and achieve complementary development and complementary development.

According to the company's plan, in the future, we will excavate high-level brands that meet strategic positioning on the one hand. On the other hand, we will timely intervene in the business development of the lifestyle areas suitable for the target customers.

Build multi brand marketing system combining online and offline.

The company focuses on the online exclusive brand market with the help of With Song, actively explores new brand building and promotion methods, and expands the scope of the target customers of the company's brand. At the same time, the company will gradually build a multi brand online and offline integration, mining customer groups suitable for different channels and consumer habits, expand the interaction between online and offline control data, and integrate the high coverage of the store layout, the offline service with a full range of good consumer experience, and the cost-effective and convenient online service to provide customers with a variety of products and services.

It is estimated that the net profit attributable to the parent company in the 2016-18 years is 1.81, 2.10 and 243 million yuan respectively, increasing 13.48%, 15.71% and 15.77% respectively, corresponding to EPS 1.10, 1.27 and 1.47 yuan respectively.

Reference correlation

The company's valuation level was given to the company in 2016 45xPE, corresponding to the target price of 49.28 yuan, overweight rating.

The main uncertainties are: the continuing downturn in the retail market, the sluggish demand for terminals, the risk of continuous upgrading of raw materials, rentals and manpower costs.