Main points of investment:
Event: the company announces the resolution of the board of directors and the asset acquisition intention case, which intends to purchase Australian flangolin business assets (FranklynBlindsAwningsSecuritybusiness)-related assets and inventory in cash through the company's holding subsidiary KRS, with a total transaction consideration of no more than A $18 million. KRS intends to pay A $10 million for the acquisition of business assets, and the purchase value of inventory will be finally determined according to the subsequent approved value.
Franklin's assets will strengthen the company's future performance. Flannelin is an advanced manufacturer and retailer of curtains, blinds, awnings and safety nets in Brisbane and southeastern Queensland, Australia. Francois blinds have a complete brand, good market share and reputation. According to our search, Flynn has its own website: http://www.franklyn.net.au/, interested investors can learn more about its products, business models, etc. Flangren was founded by FrankGalea in Brisbane in 1985. If the future acquisition is successful, FrankGalea will remain in office and the original 134 employees will remain in office at the same time. The company estimates that this purchase will bring about 30% growth to KRS's turnover and effectively promote the growth of KRS's earnings per share.
The future development model path has been clear-KRS has become an important integration and expansion platform for the company's overseas business. In addition to the release of domestic production capacity of the original fund-raising projects, the expansion of overseas markets has become another major center of the company's development. The expansion of overseas markets does not simply refer to the increase in the export proportion of Sunshine fabrics, the company also takes the initiative to go global strategy, the use of epitaxial acquisitions to further develop themselves. This asset acquisition intention fully shows that the company's holding subsidiary KRS has become an important integration and expansion platform for the company's overseas business after the company completed the acquisition in the third quarter of this year. In the future, the company will not only strive to restore the profitability of KRS, but also rely on KRS to further expand its market share in Australia. We conducted a survey of the company, and the latest information obtained is that the market capacity of curtains, blinds and awnings in Australia is about A $4 billion, which is huge, and there is a lot of room for KRS to improve its market share and profitability.
Maintain a "buy" investment rating. We do not adjust the original profit forecast model for the time being (the original valuation model does not take into account the performance improvement brought about by the KRS table and the impact of this asset acquisition), and the company's EPS from 2014 to 2016 is expected to be 0.21,0.27,0.32 yuan, maintaining the "buy" investment rating.
