Singer Promotes Multi Brand Strategy To Increase Carina Lau'S Tide Card.

According to the world clothing shoes and hats net,

It was announced in July 17th that the total amount of convertible bonds to be issued would not exceed 607 million yuan, and the term of bonds would be 6 years. After deducting the cost of issuing bonds, it would be invested in the Laurel brand.

R & D center expansion project, Laurel marketing center construction project, acquisition of Tang Li International 10% equity projects and supplementary liquidity.

The company intends to use the convertible bond to raise 154 million yuan to acquire 10% equity interest of Tang Li International, but it does not take the approval of the convertible bond as the precondition. After the completion of the acquisition, the company holds 90% of its equity interest.

This acquisition corresponds to Tang Li International Valuation of 1 billion 540 million yuan, 16 years earnings ratio 11 times.

The key points of investment are convertible bonds, overweight and multi brand operation, and three year shareholder returns show confidence.

The company announcements the convertible bond plan, the bond intends to raise 607 million, the fund intends to invest in: Laurel

R & D center expansion (166 million), Laurel marketing center construction (187 million), acquisition of 10% stake in Tang Li International (154 million), and supplementary liquidity (100 million).

The validity period of the bonds is six years, and the shares can be converted from 6 months after the issuance (if the price of the conversion price is 26.52 yuan / share, corresponding to 22 million 880 thousand shares) according to the announcement.

In the period of conversion, at least 15 closing prices of a company's 30 consecutive trading days are no less than 130% of the current share price, and the company has the right to redeem the non convertible bonds.

At the same time, the company announcements of shareholder return planning in the next three years, and the annual profit distribution in cash is no less than 30% of the profit allocated for the year.

It intends to increase its 10% stake in Tang Li International, and EdHardy will have a bright future.

After the issuance of the convertible bonds, the company intends to invest 154 million in the acquisition of 10% of the international interest held by Huayue international, and will hold 90% of its equity interest after completion.

Tang Li International's EdHardy has a high growth potential. In 2016, Tang Li International realized 370 million yuan in revenue, an increase of 65.9%, and a net profit of 140 million yuan and an increase of 120% without considering the factors mentioned above.

2017 EdHardy continued strong in the first half of the year, same store increased by more than 13%, the new store sales force increased by about 30%+, at present, there are about 105 stores, it is expected to open more stores in the second half of the year. At the same time, the sub line EdHardyX has gradually started. Currently, there are about 15 shops covering three series of leisure /Skinwear underwear and /Sports sports, and the speed of opening the shop will be faster than the main line, which will become a new driving force for growth in the next three years.

On the whole, it is expected that Tang Li International is expected to maintain strong growth in the next three years.

Firmly optimistic about the company's multi brand fashion group strategy landing, synergy effect is emerging.

The construction of group through extension is the inevitable path in the field of fashion consumer goods, and the quality of the company's brand is enough to support the long-term market space in the future.

The company has the ability to operate and control multiple brands: (1) the company has a clear layout of the future development path of the existing brand, and is well versed in the fashion brand operation rules and applies to the subsequent selection process.

(2) the current multi brand operation also fully reflects the implementation of the company: IRO new store is expected to enter the North / deep core business circle, Laurel is expected to open to 40 stores throughout the year, EdHardy continues to be strong.

(3) the synergy between the targets is obvious, and the group operation is good. It includes the synergy of multi brands in the channel development, and the strengthening of the online business by EdHardy and the introduction of more high-quality fashion brand resources.

Earnings forecasts and investment proposals.

Many brands of the company are on the eve of the outbreak or explosive growth. With the Laurel and IRO entering the profit cycle, the total net profit CAGR is expected to reach 30% in the next three years.

The convertible bond funds will further enhance the strength of the company's multi brand operation, while shareholder return guarantees the stable dividend rate in the next three years (2014/15/16 dividend rate is 29%/27%/35%), and also shows the company's confidence in development. Multiple benefits are expected to catalyze the stock price.

Short term concern about the multi brand performance of the Chinese newspaper brings more performance than expected. In the long run, the company will continue to promote the strategic landing and growth of multi brand fashion group.

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