In Recent Years, The Net Profit Of The Company Has Suffered An Annual Compound Decline Of About 44% For Two Consecutive Years.

Shares announced today that its wholly owned subsidiary, Tibet Serge.

The limited company recently received the notice of Tibet Shannan City Finance Bureau on Issuing the special budget target. The Finance Bureau applied for the development funds of enterprises in Tibet according to the application of the enterprise development fund submitted by wow in Tibet. After examination, it issued RMB 24 million 226 thousand yuan for the development of Wye industry, which was used to support the development of its national handicraft industry.

Tradition in recent years

Due to the impact of Internet consumption and the attack of domestic and foreign brands, the business suffered a development bottleneck, and the net profit of its shares suffered a compound decline of about 44% over the past two years.

Therefore, following the support of the channel and brand advantage, the company has built up the "Pan fashion ecosystem" by leveraging the famous Korean fashion brands to get through the four major plates: Women's clothing + baby + cosmetics + medical beauty.

Since it was included in the 26.5% stake of the Korean national baby brand akakon in 2014, the company invested in the L&P10% brand of Korean mask brand in 2015, and has successfully obtained the Korean medicine brand Dream Medical Group30% stake this year, and established the initial layout.

The above funds were allocated to Bank of Tibet's bank accounts in July 11, 2016. According to the relevant provisions of the accounting standards for enterprises, Tibet made the above-mentioned government subsidy RMB 24 million 226 thousand yuan as "extra business income" and entered into its current profits and losses.

In the 2013-15 years since the fierce competition in women's clothing business led to a net profit recession, it is expected to benefit from the L&P mask in 2016 and step into the growth cycle of the medical beauty industry.

With this 24 million 220 thousand grant in 3Q16, we estimate that net profit will rise to 150 million in 2016, up 103% over the same period last year.

In 2016, the company directly and indirectly obtained the Korean medical brand Dream Medical Group30% stake, and joined the 6 Milan medical beauty hospital and out-patient clinic unit, officially announced to enter the medical beauty industry.

It is expected that the company's talent supply, cultivation and technical support in Dream will be able to solve the biggest pain point in the Chinese medical and American industry.

In addition, the company will obtain funds through equity financing and other loans, and then reach 30 large scale hospitals and out-patient clinics in 2019 to share the huge market of China Medical Beauty in 2020.

The net profit after tax is expected to be 150 million, 180 million and 260 million in 2016-18 years.

ROE were 6.8%, 7.7% and 10.3% respectively.

EPS were 0.38, 0.45 and 0.65, respectively.

The current PE is 66 times, 55.8 times and 38.6 times respectively.

It is expected that the company's active entry into the mask and medical beauty business will start the net profit and upward trend of valuation. We should pay close attention to investment risk: the development of China's regular medical beauty is stagnant, and the expansion of the company's medical beauty is not as good as expected.