YOUNGOR: Brand Clothing Has An Advantage Over Expected Valuation.

Channel integration and brand remodeling, brand clothing back to the rising channel.

Company at present

Business mainly includes clothing domestic sales (revenue accounted for 77%), a small number of clothing exports and wool textile business.

According to this caliber, income and net profit in 2010 increased by 14% and 51% respectively.

Projected mid 2011

Revenue and net profit growth respectively exceeded 25% and 30%, and annual performance growth is expected to be higher.

Brand clothing

The competitive advantage is outstanding and will accumulate in the future.

The company's products are fully self-produced and the supply chain is highly efficient.

The market share of suits and shirts has been the number one for many years.

Retail terminal accounted for nearly 80% of the direct business, low channel risk and strong profitability.

With the increase of scale, the cost of each link will be diluted, and the profit growth is expected to be significantly higher than that of income growth.

It is expected that YOUNGOR brand will maintain 10% of the channel expansion speed and strengthen fine management in 2010 (flat sales of 14 thousand yuan in 2010, 36% higher than that in 07 years), and subsidiary brands have entered a fast expanding profit period.

Men's wear industry

Renew vitality and provide opportunities for the development of the company.

The market capacity of men's formal wear and business casual wear in 2011 is estimated to be 193 billion yuan.

At present, the industry structure is relatively stable, and the mainstream brand has obvious advantages.

Under the trend of urbanization and formal dress, leisure and fashion, the industry is redeveloping its vitality.

In 2011, the expansion of men's clothing company is full of momentum and the trend of consumption upgrading is strong. The average premium is expected to exceed 40%.

Risk factors: 1, high inflation and declining consumer confidence will affect brand clothing sales.

2, strict real estate regulation strategy, the company's real estate prices may fall.

The value added tax may make the net profit of real estate lower than expected.

3, there is fluctuating risk in the value of financial assets.

Earnings forecast, valuation and investment rating: because of brand clothing exceeding expectations, real estate settlement progress changes, adjust 11/12/13 EPS forecast (excluding investment income) for 0.67/1.23/1.54 yuan (brand clothing 0.40/0.53/0.68, real estate 0.27/0.70/0.86), the original forecast of 0.90/1.10/1.31 yuan (brand clothing 0.3 7/0.47/0.60, real estate 0.53/0.63/0.71).

According to the 2011 brand clothing 25 times, the real estate 5 times PE, plus the financial floating profit tax deduction net value 1.67 yuan, the company value is 13.11 yuan.

The brand clothing value of the company is not fully reflected in the stock price, and the real estate and financial value also has room for improvement.

Therefore, the rating is increased to "buy".