Core ideas:
The company is the leading enterprise in the domestic zipper industry, and its production and sales volume has been in the forefront for many years.
The company's products are mainly sold in the domestic market, and more than 80% of the products are sold to the domestic market. In recent years, with the acceleration of the company's internationalization strategy, overseas revenue has also achieved rapid growth. In 16 years, the company's revenue and net profit were 1.175 billion yuan and 118 million yuan, up 12.87% and 64.65% respectively over the same period last year. The revenue and net profit in the first quarter of 17 years were 243 million yuan and 7.69 million yuan, up 24.81% and 28.47% respectively, and continued to maintain rapid growth.
The zipper industry has a broad space, and the company's main business is expected to grow steadily.
In 2014, the domestic demand for zippers is 45.9 billion meters, and the global demand is 84 billion meters. With the upgrading of domestic consumption, the withdrawal of small and medium-sized enterprises, the company's market share is expected to increase; the company's product quality and design capacity are gradually improved, compared with international brands, labor costs have advantages, and there is a broad space to expand the international market in the future.
The company plans to acquire 65% of the cross-border export e-commerce price chain with 1.014 billion cash.
The price chain is a cross-border export e-commerce mainly based on brand e-commerce + e-commerce software + e-commerce community. Revenue and net profit in 16 years were 457 million yuan and 55 million yuan respectively, an increase of 232.34% and 520.66% over the same period last year. The net profit of the original actual controller commitment price chain in 17-19 years is not less than 1,1.6 and 250 million yuan. Based on 1) broad space and high growth of the industry; 2) the price chain is currently in the stage of rapid development; 3) carry out high-quality routes, create popular styles and expand the combination of products; 3) stable supplier relations, strong bargaining power; 4) cross-border e-commerce software services may become a new profit growth point; optimistic about the future development prospects.
The results for 17-19 are expected to be 0.40 yuan per share, 0.45 yuan per share and 0.52 yuan per share (excluding acquisitions).
The corresponding PE of 17ax in 18 years is 36x and 31x. We are optimistic about the steady growth of the main industry. at present, the chain of cash acquisition price still needs to be approved by the shareholders' meeting. if the acquisition is completed, it will incur certain financial expenses, but it may have a positive impact on the performance. "prudent overweight" rating is covered for the first time.
Risk hint
Exchange rate fluctuation risk, clothing consumption decline risk, acquisition failure risk, integration risk, fierce competition risk of e-commerce services, inventory risk