Domestic Sales Force Fur Trading Market

< p > first coverage to give "overweight" rating, the target price is 20 yuan: Hua Si stock company is < a href= "//www.sjfzxm.com/news/index_c.asp" > fur > /a > sub industry leader, extends the upstream and downstream to build the whole industry chain, exports to domestic sales, competitiveness is increasing, it is estimated that 2013-2015 years EPS is 0.80, 0.98, 1.20 yuan, domestic sales force and fur trading market after completion, the growth of revenue and net profit will increase significantly, giving 25 times PE in 2013, corresponding to target price 20 yuan.

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< p > the performance of the mid market is in line with market expectations: in the first half of 2013, the shares of "a href=" //www.sjfzxm.com/news/index_c.asp "> //www.sjfzxm.com/news/index_c.asp" /a "amounted to 292 million yuan, an increase of 21.49% over the same period last year, and the net profit of the parent company was 40 million 190 thousand yuan, an increase of 25.41% over the same period.

The performance is in line with the market expectations.

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< p > business structure was pformed from OEM to OBM and ODM with high gross margin. In the first half of the year, the company continued to optimize its product structure and gross margin increased by 1.41pct.

1) from OEM to OBM and ODM with higher gross profit margins, OEM's revenue share decreased by 0.31pct, OBM's revenue accounted for 62%, ODM reached 25%; 2) OBM, ODM and OEM business gross margins increased compared to the same period last year.

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< p > > downstream > extension > a href= "//www.sjfzxm.com/news/index_c.asp" > brand construction < /a >, clothing proportion and domestic sales ratio continue to increase: the company is marching from manufacturing to its own brand, building two brands of Wordsworth and yijiaqi, strengthening the construction of Direct stores, increasing clothing and clothing revenue by 87.3% compared with the same period last year (42.2% in 2007); "export to domestic sales", and strive to open up the domestic market, and the proportion of domestic sales increased from 18% in the first half of last year to 33.3%.

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< p > the completion of the raw material market will strengthen the control over the upstream. The completion of the two phase project of the fur raw material market will greatly enhance the company's ability to control the upstream market.

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< p > expected revenue and net profit will continue to grow steadily in the second half of the year: the lease of raw material market will bring new rental income to the company; the upstream and downstream integration and business upgrading will be effective, and the competitiveness of the leading company will further enhance, and the income and net profit will continue to grow steadily in the second half of the year.

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< p > risk hints: fur raw material prices fluctuate; exchange rate fluctuations affect profitability.

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