A summary of the collection

It is a manufacturer of sand and sand production sets, which designs, produces and sells all kinds of sand, sand sets and other furniture products through OEM, ODM and OBM. In the aspect of OEM service, it generates sand production according to the design and specification provided by customers, while in ODM mode, it designs, develops, produces and sells sand according to customers' requirements. As for the OBM model, Sha Fat is mainly sold under its own brands "Morris HoldingsLimited" and "Morris Zou".

Shafa of the market is mainly exported to the United States, and in the past three years ending December 31, 2015, sales revenue in the US market accounted for more than 90% of the net income.

Industry summary

According to the report, the market size of the US retail sector has increased from US $13.3 billion in 2011 to US $15.3 billion in 2015, with a combined annual growth rate of 3.6%. During the long-term forecast, the US retail sector will reach US $19.3 billion in 2020, with a combined annual growth rate of 4.6% from 2015 to 2020.

Cymbals

The equity ratio of the collection increased from 45.1% at the end of 2014 to 264.0% at the end of 2015. The collection of the existing level of obligations may limit their ability to obtain the necessary financing or obtain favorable financing conditions to collect future capital expenditure and funds. The above restrictions may weaken the competitiveness of the cluster and restrict the activity of the business operation of the cluster, thus causing a significant adverse impact on the business situation and operating performance of the cluster.

Valuation

According to the IPO documents, assuming that the global development sale was completed on August 31, 2016, according to the expected development of more than 10 shares after the completion of the sale of long-term shares, shares should account for HK $332 million to HK $389 million in the untested tangible assets area. It is equivalent to HK $0.371 to HK $0.435 per share (at the exchange rate of HK $0.8944 to HK $1.00 per share).