This report is read as follows:
The two-wheel drive of trade and investment, the optimization of trade structure led to the improvement of risk resistance, and the performance of financial investment significantly increased.
The company holds 2.76% of Xiamen Bank shares, and Xiamen Bank's IPO is expected to significantly increase its performance in the future.
Main points of investment:
21. Investment suggestion: the EPS of the company in 2019-2021 is 0.51 PB 0.28 yuan, reference comparable company gives the company 1.6 times PB, the target price is 6.7 yuan, cover for the first time, increase the holding cautiously.
twenty-two。 The main business of clothing trade is growing steadily, and the new characteristic market is growing rapidly. In recent years, the company has clearly defined the "two-wheel drive" development strategy and, on the basis of traditional clothing trade, actively develop new characteristic market businesses, such as franchise of monitoring chemicals, bidding business for nuclear power materials, seafood import and export business, and supply chain linkage cooperation between central enterprises at home and abroad, gradually break through the dependence on traditional clothing export trade, and the proportion of clothing trade revenue has dropped from 63.8% in 2016 to 56.2% in 2018. The product categories of domestic trade and import trade have been extended to mechanical and electrical products, steel, chemical, pharmaceutical products, foreign aid materials, etc., with increasingly optimized business structure and enhanced anti-risk ability.
23. The traditional clothing industry is optimized and upgraded, extending to high value-added and differentiated services. The company insists on deepening the transformation and upgrading of the traditional clothing industry, upgrading from OEM to ODM, extending to the middle and high end of the industrial chain, and providing value-added and differentiated services. In 2018, the income of clothing production business increased by 109%, and the gross profit margin increased by 2.1 percentage points.
24. Invigorate idle assets, improve the efficiency of the use of assets, and increase the performance of investment income. The company adheres to the "trade + investment" two-wheel drive strategy, with financial services as the main investment, as well as PRE-IPO and PE investment. As of 19H1, the total book value of stocks and funds held is 681 million yuan, of which 2.1% equity held by Huaan Securities 19H1 contributes 182 million yuan to investment income. The company also holds a 2.76% stake in Xiamen Bank. Xiamen Bank IPO is about to achieve capital appreciation and contribute to investment advantages. The company continues to look for high-quality investment projects, promote the clean-up and integration of original resources, and constantly improve the efficiency of the use of assets and increase investment returns.
25. Risk tips: increased trade frictions, exchange rate fluctuations, changes in the fair value of financial assets, and so on.
