Core view The company is a leading comprehensive underwear brand enterprise in China. In a weak context, the company's performance grew steadily, with revenue and profit CAGR of 10% and 12%, respectively, in 2011-2015. It is strategically positioned to develop multiple brands and categories. It has 7 underwear brands with different positions, and launched a new beauty category in 2016. We expect the company's future performance growth to stem from the growth and expansion of the existing brand matrix and the continued expansion of categories. China's underwear industry has a large capacity and continues to grow rapidly, and the market share of leading local companies is expected to increase further. (1) According to Euromonitor's forecast, the overall size of China's underwear market in 2017 will be at least 260 billion yuan, and the average annual growth rate for the next three years will be about 10% (2) Consumption upgrades promote refined and differentiated development of the industry (3) The competitive pattern of the industry is stable, especially in the middle and high-end sector. In the process of reshuffling and adjustment of the retail market, the market share of leading companies is expected to increase (4) The Internet has spawned new business formats in the underwear industry. The competition ranking of offline brands in the e-commerce field is high, and online growth is becoming a new driving force for growth (5) due to the consumer characteristics of underwear products, Local brands have an outstanding advantage in industry competition. As a strong sub-IPO, the company is expected to gain a broad space based on a multi-brand and multi-category layout. (1) The company's main business is stable and solid (2) The company has leading channels and R&D advantages, and is a rare leading new stock in the industry segment. (3) The company's multi-brand and multi-category strategy is in line with the characteristics of the underwear industry. The multi-brand layout in the underwear field has achieved complete coverage of all market segments, and testing the waters of multiple categories in the beauty field will also lay a good foundation for the company to continue expanding the consumer goods sector in the future. The success of Vimi, an international underwear giant, provided a good example for the market: (1) The women's underwear industry has good soil to generate companies with large market capitalization. (2) The market share of leading companies in the women's underwear industry is theoretically much higher than that of ready-to-wear (3) The multi-brand and multi-category strategy is one of the effective ways for leaders in the underwear industry to grow. Currently, Huijie's development strategy is partly similar to Vimi, and it also has the capital advantage of listed companies. We expect that in the future, the company can truly become a giant in the industry by relying on the capital market platform. Financial forecasting and investment advice We forecast the company's earnings per share in 2016-2018 to be 0.82 yuan, 0.92 yuan, and 1.09 yuan, respectively. Referring to the comparable company's average price-earnings ratio of 47 times in 2017, the corresponding target price was 43.24 yuan, giving it a “buy” rating for the first time. Risk warning: market demand risk, multi-brand and multi-category operation risk, inventory backlog risk, raw material price fluctuation risk