Report summary:
The company is a leading enterprise in the wool spinning industry. After MBO, it changed from a state-owned enterprise to a private enterprise. The company has been deeply involved in the wool spinning industry for many years, and has a leading level of technology and users all over the world, but due to the influence of industry sentiment and the company's equity structure, the development of listed companies is relatively stable. In 2014, the company successfully carried out MBO, changed from a state-owned enterprise to a private enterprise, and the interests were straightened out.
The Group's Ruyi technology industry chain has a perfect layout and strong asset strength. Ruyi Technology Group, the parent company of the listed company, was ranked No. 1 in China's textile and garment competitiveness in 2015. The group owns two complete industrial chains of cotton spinning and wool spinning. As of March 2016, the group company had 26 holding companies, and its enterprises spread all over the world. As of March 2016, the total assets of the Group reached 34.885 billion yuan, with a three-year compound growth rate of nearly 40%. In 2015, the net profit of its mother exceeded 600 million yuan, and the Group's strength increased steadily. The first fixed increase since listing was carried out in August 2015, and all assets related to woolen fabrics and apparel manufacturing under the group were merged into listed companies.
Group companies continue to make overseas mergers and acquisitions, and their international influence is getting stronger. In recent years, the group has begun the pace of overseas mergers and acquisitions. The target business scope of the acquisition covers upstream raw materials, textile manufacturing, and branded apparel. The target operating countries include Japan, Australia, South Korea, India, the United Kingdom, Australia, New Zealand, Germany and France. Among them, the brand apparel companies that have been merged and acquired are mainly Japanese fashion brands and the French SMCP Group.
Taking advantage of the rapid development of the luxury industry, the French SMCP Group is in a stage of rapid growth. Compared with the fast fashion industry and the luxury goods industry, the luxury industry has grown at a higher rate and has higher growth potential in recent years. The French SMCP Group has three luxury brands. Each brand style is clearly positioned. Two of these brands rank in the top ten in the luxury market. The group company model combines the advantages of the fast fashion industry and the luxury goods industry. Revenue, net profit, profit margin, and same-store growth all showed a strong upward trend. With the implementation of Ruyi Group's acquisition, SMCP has great potential for future development in Greater China.
Risk warning: The wool spinning industry is sluggish, the consumer side is sluggish, and the risk of overseas mergers and acquisitions.