Main points of the report

Event description

Bangjie shares (002634) announced its annual report for 2015. the main operating results are as follows: in 2015, the company achieved operating income of 330.293 million yuan, down 11.75% from the same period last year; the net profit attributed to shareholders of listed companies was 36.23 million yuan, up 7.38% from the same period last year; basic earnings per share was 0.28 yuan per share, the same as the previous year. The profit distribution plan is: on the basis of 128056271 shares, a cash dividend of 2 yuan (including tax) is distributed to all shareholders for every 10 shares, and the capital accumulation fund is used to increase 26 shares for every 10 shares.

Event comment

Seamless clothing sales price increment, export decline dragged down the overall revenue. In 2015, the company achieved sales revenue of 322.955 million yuan for seamless clothing, a decrease of 12.4% over the same period last year, and product sales of 30.94 million pieces, a decrease of 20% over the same period last year. From a sub-regional point of view, the growth of domestic sales can hardly offset the decline in export sales. The overseas market, which accounts for nearly 90% of sales, achieved revenue of 296.27 million yuan, down 13.4% from the same period last year, while the domestic market achieved revenue of 34.013 million yuan, up 5.8% from the same period last year.

The implementation of comprehensive 6s on-site management has achieved remarkable results in cost control. In 2015, while operating income decreased by 11.75% compared with the same period last year, the company stepped up cost control efforts to control operating costs to 244.4 million yuan and 12.73% lower than the same period last year; affected by the reduction in loan interest expenses and the increase in aggregate income, financial expenses significantly decreased by 308% compared with the same period last year, and the scale of sales and management expenses was basically stable; the company achieved operating profit of 43.695 million yuan, an increase of 33.9% over the same period last year.

The advantage of marketing network has been further consolidated, and the sales share of the top five customers has decreased slightly. After long-term development, the company has further consolidated its leading position in the seamless clothing industry, and has established a good and stable cooperative relationship with ZEEMAN, NKD, Centra and Kik, ensuring the stability of sales channels and order scale. During the reporting period, the sales revenue of the company's top five customers reached 173.736 million yuan, accounting for 6.27 percent lower than in 2014 to 52.6 percent.

Fund-raising projects continue to be put into production, and the advantage of production capacity is further consolidated. At present, the company has 376 once forming seamless knitting machines, more than 800 sewing equipment and 2 covered yarn production workshops, and has established an integrated product development system of proofing and sewing. The company's annual output of 2000 tons of nylon DTY and 1200 tons of coated yarn technical renovation project is expected to be put into production by the end of 2016, the company's capacity advantage will be further consolidated.

The growth of seamless clothing business is weak, and it is planned to lay out two major areas: medical health and Internet upgrading. After 16 years of rapid development, the seamless clothing industry has entered a mature period of development, profitability has decreased, and the overall growth is weak. During the reporting period, the company established a new Bangjie Medical Investment Management Company, and signed a strategic cooperation agreement with Yinkang Health and advantage Entrepreneurship on January 19, 2016 to jointly formulate capital and industry plans for medical health and Internet upgrading and development. and through the acquisition of high-quality mature medical industry targets and medical industry M & A fund (the size of the fund is tentatively scheduled to be 1.5 billion yuan). From 2016 to 2017, the company's EPS is expected to be 0.36 yuan and 0.43 yuan respectively, corresponding to the current valuation of 110x and 92x, maintaining a "neutral" rating.

Risk Tips:

1. The fund-raising project was put into production and fell short of the expected return.

two。 Exchange rate fluctuations, etc.

3. Systemic risk.