Interpretation Of Leather Resources And Investment Prospects Of Hong Liang Women'S Shoes

< p > industry prospect: our country's < a href= "//www.sjfzxm.com/news/index_c.asp" > leather shoes < /a > production for 2013-2015 years keeps the growth of 5-10%, and per capita consumption has much room for improvement; the upstream of leather making industry is increasingly scarce due to the dispersion of livestock and the slaughter of cattle, the domestic raw leather resources are increasingly scarce; the company has the advantage of high-quality domestic cowhide resources, and the output of cowhide upper leather is second in the industry, but the market share is only 2.7%.

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With sufficient reserves and strong control over the domestic raw leather resources, it is expected that the share of raw leather procurement will be increased from 20% to 50% and enhance the ability to bargain at the downstream. (2) the company will set up the "raw leather and billet" water treatment process in Linxia, Gansu, with the dual location advantages, forming the complete production chain from raw leather to finished leather, building the procurement channel, controlling the product quality and reducing the cost, strengthening the independent research and development and active sales, and improving the market response ability; (3) laying stress on product research and development, putting in advanced production equipment and updating technology, shortening the development cycle, enriching the product line, and having 30 products of six series of three products, and the product line is perfect, and the growth trend is good. A < p > competitive advantage: (1) located in the northwest main breeding base and < a href= "//www.sjfzxm.com/news/index_c.asp" > raw leather < /a > trading center, strong purchasing ability, stock.

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< p > financial analysis: (1) the company's product competitiveness is strong, its capacity utilization is sufficient, the compound income of 2009-12 years is increased by 46%, and the new project will still push the income growth of more than 30% in the next three years. (2) the company's main added value shoes are < a href= "http:// www.sjfzxm.com/news/index_c.asp" > shoe upper leather < /a >, and the gross profit margins of 2012 and 1H13 are 21.5% and 24.3%, respectively, which is 8 percentage points higher than that of comparable companies.

With more abundant raw stock, stronger purchasing power and scale advantages, the company's upstream and downstream bargaining power will increase, and gross margin will have room for improvement; (3) the net interest rates of 2012 and 1H13 will be 11.4% and 13.6%, and the net profit rate will be raised to around 15% after the increase of the future gross profit margin and the financial cost rate after the fundraising is in place.

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< p > raise investment project: plan to raise 265 million yuan to invest in the "new year processing 450 thousand bid Zhang cattle leather extension" and "research and development center construction" project, which can increase 36% production capacity. It is expected that the project will reach production in the second half of 2014 and increase the scale of revenue.

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< p > earnings forecasts, valuations and enquiry proposals: the company expects net profit of 2013-2015 yuan to be 185 million yuan, 256 million yuan and 350 million yuan, up 55.1%, 38.9% and 36.5% compared with the same period last year. EPS is 1.32 yuan, 1.84 yuan and 2.51 yuan temporarily according to the newly issued 9 million 400 thousand shares.

Considering the industry average PE and company growth, according to 2014 15-20 times PE, the company's reasonable value range is 38.47-51.3 billion yuan.

With the issuance of 940-1840 million new shares, the price range is 25.9-36.8 yuan.

It is recommended to refer to 22.11 yuan as the central value of the inquiry.

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< p > risk and uncertainty: raw material purchasing risk and price fluctuation; market competition intensifies risk; management risk.

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