Subscription Ratings and Opinions

76.3% of the group's revenue comes from the US. The revenue growth rate has a lot to do with the US economy, and its customers are mainly African consumers in the US and Europe. On the one hand, it plans to introduce more human hair accessories to this customer base, and on the other hand, to further increase high-end human hair extension products. According to the Frost & Sullivan report, the size of the global hair accessories market will record a compound annual growth rate of 16.7% from 2016 to 2021. The Group currently has three and two production centers in China and Bangladesh. To meet demand, it plans to increase production capacity in Bangladesh, which is expected to be achieved before the end of 2019. In terms of financial data, revenue increased from $534 million in 2014 to $596 million in 2016, mainly due to an increase in the average selling price of products, which increased from HK$17.5 per item per year to HK$22.9 in 2016. Overall gross margin increased from 32.6% in 2014 to 35.5% in 2016, but due to changes in the fair value of redeemable convertible preferred shares and listing fees, a profit of 32.8 million yuan last year was reduced by 52%. Excluding this factor, the core profit was 86.1 million yuan, an increase of 27.9%. Based on the prospectus price, the price-earnings ratio in 2016 ranged from 11.8 times to 13.6 times. Currently, no related company is listed in Hong Kong, while Henan Rebecca (600439), the world's largest hair products manufacturer, is currently listed on the Shanghai Stock Exchange, with a price-earnings ratio of 37 times, while the price-earnings ratio of clothing stocks that are similar in size to the group listed in Hong Kong is between 10 and 15 times. In addition, the Group introduced 3 underlying investors to invest in shares, accounting for 23.4% to 26.9% of the number of shares offered. Overall, the company was given a “cautiously optimistic” rating, with an overall rating of 6.5.