1. IPO purchase proposal:
The company designs, develops, produces, sells and markets role-playing products (including role-playing clothing and role-playing wigs) and non-role-playing clothing (including sexy lingerie). The products are mainly exported to more than 30 countries and regions around the world, including the United States, Germany, the United Kingdom and Australia.
The company has two main business can be divided into two main categories, namely, CMS business and OBM business: a. Manufacture product B. according to customer's requirements and specifications. Provide value-added services such as product design and opening according to the specific needs of customers. In 2014, CMS business accounted for about 82% of the company's total revenue, which is the company's main source of income, and the rest is OBM business income. The company currently has seven brands, and three of them are more active, namely PartyTime, SecretTemptations and Styler. The company's main products are role-playing clothing, role-playing wigs and sexy lingerie, of which wigs accounted for 45% of income in 2014, clothing accounted for 46% of income, and sexy lingerie accounted for 9% of income. In addition, the company's products are mainly exports, with the United States, Germany and the United Kingdom as the three major export destinations of the Group, accounting for only 3.4% of the revenue from China in 2014.
There are currently hundreds of participants in China's role-playing wig market, and the group is the most profitable role-playing wig maker in 2014, according to the Yuan Zhe consultancy report. China's top five role-playing wig manufacturers accounted for about 10.2% of total market revenue in 2014, and the overall market is fragmented.
The company's main future expansion strategies are as follows: (I) further enhanced R & D capability; (ii) expansion of OBM business in the Chinese market; (iii) expansion of product market share in overseas markets; and (iv) strengthening production capacity.
The company's 2014 revenue was about 398 million yuan, up 33.1% from the same period last year. The profit during the period was 58.58 million yuan, up 57.5% from the same period last year. The overall gross profit margin was 27.6%, but there was little difference between the gross profit margin of CMS and OBM business. In 2014, the company sold 18.51 million wigs, 6.06 million role-playing costumes and 1.24 million sexy lingerie.
The company's profit model is relatively simple, mainly manufacturing, sales and design wigs and clothing, the business is mainly related to the development of the animation industry around the world.
The company believes that the global economic recovery and China's economic growth will boost consumer purchasing power, a trend that may continue to drive consumer spending on animation-derived products such as role-playing clothing and role-playing wigs. At the same time, China's cosplay market is in its infancy and there is a lot of room for it in the future.
From a valuation point of view, according to the median IPO price, the PE of EPS in 2015 is about 7 to 8 times, the valuation is relatively low, so it is recommended to apply carefully.