Core ideas:
The company's main business is stable in the first half of the year.
The company achieved revenue of 262 million yuan in the first half of the year, a decrease of 7.65% over the same period last year, and a net profit of 13.38 million yuan, an increase of 13.19% over the same period last year. The company's costs and expenses were properly controlled. In the first half of the year, operating costs fell by 12.62% compared with the same period last year, and gross profit margin increased by 4.43% compared with the same period last year. The increase in asset impairment loss is a drag on operating profit, mainly due to the provision of 5.2065 million yuan for bad debts. The increase in net profit was mainly due to an increase of 2.4705 million yuan in government subsidies and preferential income tax rates over the same period last year.
The landing of fixed growth opens the room for performance growth for the company
The company completed the fixed increase, raising 1.838 billion yuan to acquire Ruyi science and technology clothing assets, Taian Ruyi 100% equity, Wenzhou Zhuangji 51% equity, and build Ruyi spinning high-grade worsted fabric project, Ruyi spinning 2 million sets of high-grade suit project, in order to enrich the downstream clothing industry resources, form a synergy with the main industry, and build a textile and clothing industry chain. The acquisition targets will be consolidated in the second half of the year, which will greatly improve the company's performance. The company expects results to grow by 80% in January-September by 120%.
The group is rich in resources and its overseas layout is constantly advancing.
Shandong Ruyi Group has a large volume and a large number of high-quality textile assets, which provides strong support for listed companies. The Group actively promotes its overseas layout and acquires high-quality overseas brands. in the first half of this year, it acquired a majority stake in SMCP. SMCP's 15-year revenue reached 675 million euros and EBITDA reached 110 million euros. Previously, the group has acquired Renown of Japan, and it is expected that the brand acquisition strategy will continue in the future.
The results in 16-18 years are 0.26,0.48,0.71 yuan per share respectively, corresponding to 74 times of PE in 16 years. Considering the high growth rate of the company's performance after the fixed increase, and the group is rich in resources, the company is given a "buy" rating for the first time.
Risk hint
The economy remains in the doldrums; the operational risk of fund-raising projects; the operational risk of the subject matter of acquisition