Events:

The company's annual operating income was 330 million yuan, down 11.75% from the same period last year, and the net profit attributed to listed companies was 36 million yuan, an increase of 7.38% over the same period last year. The net profit from non-return was 31 million yuan, up 7.38% from the same period last year, and EPS 0.28 yuan, and the net cash flow from operating activities was 94 million yuan, up 0.82% over the same period last year. The profit distribution plan is as follows: with 1.28 billion shares as the base, cash dividend of 2 yuan (including tax) for every 10 shares, and 26 shares for every 10 shares of the capital accumulation fund.

Comments:

The performance is in line with expectations. The company is mainly engaged in the seamless clothing industry, providing seamless clothing for international brands and terminal retailers. Affected by the weak economy at home and abroad and intensified competition in the industry, the profitability of the seamless clothing industry began to decline. The company achieved operating income of 330 million yuan in 2015, down 11.75% from the same period last year, and the net profit belonging to listed companies was 36 million yuan, an increase of 7.38% over the same period last year, basically in line with expectations. The company's main seamless clothing future profit growth potential comes from cost reduction and higher value-added new product development. At present, the company extends upstream around the seamless clothing manufacturing industry chain, raising investment in nylon and package yarn projects, which are expected to be put into production in 16 years. The smooth commissioning of nylon and package yarn projects will reduce the company's production costs and enhance scale advantages. At the same time, the company plans to move its industrial base to lower-cost Southeast Asia, which will move forward at the right time in 2016. The company makes use of the research strength of external scientific research institutions to strengthen the cooperation between universities and enterprises, give full play to the ability of external research institutions in cutting-edge technology development, and strengthen the continuous improvement of product production process and new product research and development. With the gradual promotion and implementation of cost control and high-margin new product development, the company's seamless clothing performance is expected to achieve steady growth in the future.

With the transformation of the medical and health industry, the project can be landed. The company is committed to the transformation of the medical and health industry, the company set up a wholly-owned subsidiary "Bang Jie Medical Investment Management Co., Ltd.", focusing on investment in the medical and health industry. The company set up a medical and health industry fund with Shangxin Capital in 2015 to invest in the medical and health industry, and signed a "Strategic Cooperation Agreement" with Yinkang (Shanghai) Health Development and advantageous Venture Capital in January 2016. to provide the company with a wide range of M & A services and active M & An investment management services, while the three parties jointly set up a fund management company and a medical industry M & A fund, the size of which is tentatively set at 1.5 billion yuan. Yinkang (Shanghai) Health Development is a medical and health service group company specializing in medical services, pension investment, trusteeship, pharmaceuticals, medical devices, Internet medical care and so on. The successful projects include Lushan Old-age Health City Project, Affinity Source Pension Project (signing purchase agreement with Yihua Health, Taizhou Jiangyan regional medical institution resource integration project (signing "strategic cooperation agreement" with Hainan Haiyao) and so on. Tianjin advantage Venture Capital Management Co., Ltd. is a professional organization engaged in strategic consulting, M & A funds, M & A consultants and private equity investment. it has a deep understanding of medical and pharmaceutical investment. at the same time, it has rich experience in M & An and a wide range of financial resources. With the help of Shangxin Capital, Shanghai Yinkang Health's rich medical industry resources and management experience, Tianjin's superior venture capital professional investment ability is expected to tap a number of suitable investment or M & A targets with good development prospects and rapid performance growth. the landing of the project is expected.

Earnings forecasts and ratings. The company is mainly engaged in the seamless clothing industry, although the profitability of the seamless clothing industry began to decline, with the gradual promotion and implementation of cost control and high-profit margin new product development, the company's seamless clothing performance is expected to achieve steady growth in the future. The company is committed to the transformation of medical health, and intends to gradually develop the more profitable and more promising medical health plate into the company's main business through continuous epitaxial mergers and acquisitions. Although the company has no investment background in the medical and health field, M & A fund partners Shangxin Capital, Yinkang (Shanghai) and Superior Venture Capital have rich investment experience and numerous resources in the medical and health industry, and the project can be landed. We expect the company's EPS to be 0.33,0.41 and 0.44 yuan respectively from 2016 to 2018, maintaining a "buy" rating.

Risk hint. Business development is not as expected; the risk of uncertainty in the promotion of major medical and health projects.