Summary of the report:
The company is a leading enterprise in the wool textile industry, and it has changed from a state-owned enterprise to a private enterprise after MBO. The company has been ploughing the wool textile industry for many years, with a leading technical level and users all over the world, but affected by the prosperity of the industry and the company's ownership structure, the development of listed companies is relatively stable. In 2014, the company successfully carried out MBO, transformed from a state-owned enterprise to a private enterprise, and straightened out the relationship of interests.
The group Ruyi science and technology industry chain layout is perfect, the asset strength is abundant. Ruyi Technology Group, the parent company of the listed company, was ranked No. 1 in China's textile and clothing competitiveness in 2015. the group has two complete industrial chains of cotton and wool spinning, and as of March 2016, the group has 26 holding companies. its companies are all over the world. As of March 2016, the group's total assets reached 34.885 billion yuan, with a three-year compound growth rate of nearly 40%. The 2015 net profit exceeded 600 million yuan, and the strength of the group has steadily improved. For the first time since it went public in August 2015, all the woolen fabrics and clothing manufacturing-related assets of the group were merged into listed companies.
The group company has made continuous overseas mergers and acquisitions, and its international influence is becoming stronger and stronger. In recent years, the Group has started the pace of overseas mergers and acquisitions, covering upstream raw materials, textile manufacturing and brand clothing. The target countries include Japan, Australia, South Korea, India, the United Kingdom, Australia, New Zealand, Germany and France. Among them, the main brand clothing companies that have acquired are Renown of Japan and SMCP Group of France.
Taking advantage of the rapid development of light luxury industry, SMCP Group of France is in the stage of rapid growth. Compared with the fast fashion industry and the luxury industry, the light luxury industry has a higher growth rate and higher growth in recent years. French SMCP Group has three light luxury brands, each brand style positioning is clear, including two brands in the light luxury market top 10. The group company model has the advantages of both the fast fashion industry and the luxury industry, with strong upward trends in revenue, net profit, profit margin and same-store growth. With the landing of Ruyi Group's acquisition, SMCP has great potential for development in Greater China in the future.
Risk tips: woolen textile industry recession, consumer downturn, overseas M & A risk.