Main points of the report
Event description
Langsha lingerie, a wholly owned subsidiary of the company, jointly invested in Guangzhou Langsha Investment Management Co., Ltd. (tentative name). The registered capital of the newly established company is 2 million yuan, of which Langsha lingerie contributed 1 million yuan, accounting for 50% of the equity. In order to firmly transform to the field of Internet culture industry, the company announced strategic investment in Oriental Huifu Hangzhou Angel Fund, with a strategic investment amount of 1 million yuan.
Event comment
Joint venture to set up a company to promote the strategic development of "Langsha" e-commerce project. The joint venture Langsha Investment Management Company will act as the e-commerce project operator of "Langsha" products to promote the strategic development of e-commerce projects. The company develops e-commerce projects, on the one hand, the proportion of e-commerce in underwear products is relatively low, and is expected to improve rapidly in the future, on the other hand, the company's product structure is mainly based on lingerie, which is easier to be connected to the Internet compared to bras. The establishment of an e-commerce project operation company in a joint venture will help to integrate the resources of the "Langsha" brand on WeChat, Tmall, Vipshop Holdings Limited and other platforms, improve brand viscosity and build brand marketing in an all-round way.
Strategic investment in Oriental Huifu Hangzhou Angel Fund to transform the Internet culture industry. The first phase of the Oriental Huifu Hangzhou Angel Fund, jointly established by Oriental Huifu and Zhejiang Qianran, will transform the Internet culture industry with an investment of 1 million yuan. Oriental Huifu Hangzhou Angel Fund focuses on early angel stage investments in the areas of mobile Internet, pan-entertainment and smart hardware, with an initial size of RMB 100 million, a duration of five years, and no less than 15 investment projects. As the project fund has inferior funds, the safety of the funds is guaranteed.
Rely on large groups to achieve business coordination and look forward to the injection of assets in the medium and long term. The company's controlling shareholder Langsha Group has Hongguang knitting, micro-loan companies, Anhang photovoltaic, Lanye photoelectric and other companies, set socks, underwear, clothing, finance, home and other diversified business in one. The scope of consolidated financial statements of listed companies includes subsidiary Langsha lingerie and Sun Company Sukai clothing. In the past 14 years, the company has purchased 1.6813 million yuan of socks from the related party Langsha knitting, which is used to achieve combined sales with e-commerce underwear, and the group's diversified business is in synergy with the main business of listed companies. In addition, the company announced on August 28 that it would stop planning the non-public offering shares to be used to purchase the assets of the project under construction of the group's Lanyi Film with an annual production capacity of 50,000 tons of high-performance packaging film new materials, and promised not to plan non-public offering shares within six months. In the context of weak traditional business growth, the company's asset quality has gradually recovered, the scale of monetary funds has continued to grow, and assets are still expected to be injected into the company in the medium to long term.
Give a rating of "overweight". Under the background of sluggish terminal sales in the early stage, the company is actively optimizing channels and digesting high-priced inventory. At present, the inventory scale has dropped to a low level, and the company's performance is expected to reverse. At this stage, the company's e-commerce project strategy continues to promote and strategically transform the Internet culture industry, relying on large groups is easy to achieve business coordination, in the medium and long term, there are still assets into the expectation. We estimate that the EPS of the company from 2015 to 2016 will be 0.03 yuan and 0.12 yuan, corresponding to the current stock price estimate of 251,69 times. Give a rating of "overweight".
