Incident description Shinur (002485) published the 2015 semi-annual report. The main operating results are as follows: during the reporting period, the company achieved operating income of 506 million yuan, an increase of 8.27% over the previous year; net profit attributable to shareholders of listed companies was 05 billion yuan, turning a loss into a profit; and basic earnings per share was 0.02 yuan/share, an increase of 133.33% over the previous year. Incident review Product structure adjustment+marketing channel optimization. Revenue scale increased steadily. In the first half of 2015, the company achieved operating income of 506 million yuan, an increase of 8.27% over the previous year. In a situation where terminal demand is weak, the company adjusts the product structure according to market demand. During the reporting period, the revenue of casual suits, trousers, and knitwear increased by 22.12%, 30.83%, and 11.52%, respectively. Looking at the subregions, the scale of domestic sales remained stable (up 0.28% year on year), and overseas sales revenue increased significantly year on year (27.77%). The company adjusted its product structure through online channels, changed the current model of selling inventory products, and instead strengthened supply chain cooperation, controlling the pace of product launch and effectively controlling inventory through small-batch production and rapid reverse orders. The expansion of new channels also paid off. The expansion of new channels also paid off. It also saw results in the expansion of new channels. It entered Vipshop successively and reached strategic cooperation with Suning Tesco during the reporting period. As a result of operating costs, gross margin declined slightly, fees were controlled, and net profit successfully reversed losses. In the first half of 2015, the company's operating costs were 351 million yuan, an increase of 9.48% over the previous year. Since the increase in operating costs was greater than the increase in revenue, gross margin decreased slightly by 0.76 percentage points during the reporting period. The company's cost control has achieved remarkable results. The scale of expenses for the period decreased by 9.67% year on year, and the period expense ratio decreased by 5.62 percentage points year on year. Among them, sales expenses and financial expenses decreased by 13.25% and 23.78%, respectively. Due to proper cost and expense control, the company's net profit in the first half of 2015 successfully reversed losses, changing from a loss of 18.779 million yuan in the first half of last year to a profit of 5,225,500 yuan. The reduction in inventory commodities and working capital materials has led to a significant reduction in inventory size. The share of accounts receivable in total assets increased slightly, and concentration has decreased. As of the end of the reporting period, the book value of the company's inventory was 338 million yuan, a decrease of 6.11% over the previous year, and a decrease of 4.47% from the book value at the beginning of the period. In addition to products and commissioned processing materials, which increased by 14.08% and 99.62%, respectively, compared to the beginning of the period, raw materials, inventory products, and turnover materials decreased by 0.81%, 14.60%, and 39.97%, respectively. At the end of the reporting period, the book value of the company's accounts receivable was 502 million yuan, a decrease of 0.90% over the previous year, and did not increase as the scale of revenue increased; the proportion of accounts receivable in total assets was 19.12%, a slight increase from the level of 18.34% at the end of 2014. The concentration of accounts receivable is low. The ratio of the top five ending balances collected by the defaulting party to the total accounts receivable is 10%, a further decrease from the level of 10.98% at the end of 2014. Maintaining the “increase in holdings” rating. Against the backdrop that the recovery progress of the domestic retail industry is falling short of expectations and the continuous rise of new business models and new technology applications, the situation of transformation and upgrading of traditional industries is urgent. In this context, as the largest men's formal wear production base in China, the company is actively strengthening marketing channel construction, increasing training for key franchisees, and at the same time integrating direct sales channels through relocation and leasing. In terms of brand building, on the one hand, it is strengthening R&D and production of cost-effective brands such as Sinoor and Melton, and on the other hand, launching high-end Planeo brands to develop customized business and achieve a rational layout of high, medium, and low grade products. Recently, the company's controlling shareholder, Groom Shinur Group, and its co-actors transferred company shares to Huaxia Life Insurance and natural person Chen Tao respectively. We expect the company's 2015-2016 EPS to be 0.07 yuan and 0.05 yuan, corresponding to current stock prices of 224 times and 296 times. Maintain the “Overweight” rating.