The Transformation Strategy Of Red Bean Shares Has Achieved Initial Success.

　　 clothing The strategic transformation has achieved initial success, and the financial cost has absorbed some profits: by accelerating the construction of retail outlets, electricity suppliers and group buying channels, the strategic transformation of the company to the brand retail leading enterprises has achieved initial success. In the first half of 2012, the company's apparel business realized 466 million yuan (revenue to 60.28%), an increase of 46.04% over the same period last year, and the gross profit margin of the apparel business was 34.52%, an increase of 7.67 percentage points over the same period last year. Due to the impact of macroeconomic regulation and development cycle, the company's real estate settlement income decreased in 2012, operating income was only 156 million yuan, a decrease of 46.28% over the same period last year. Despite the increase in clothing and textile industry revenue, the overall revenue of the company rose slightly (up 4.13% over the same period last year), but because of the increase in the cost rate, especially the rise in financial costs, the company's profit in the first half of the year dropped by 57.2% compared to that of the previous year, which was only 13 million 160 thousand yuan.

Sales rebound will lay the foundation for the future performance of real estate business: the company is currently building and planning 7 real estate projects, with a building area of about 1000000 square meters, located in Wuxi, Zhenjiang and Nanjing. Severe real estate regulation has had a certain impact on the sales of real estate since 2010. In 2010 and 2011, the company's receivables fell sharply for two consecutive years, and at the end of 2011, Company receivables It was only 350 million yuan, which shrank by 1 billion 73 million yuan at the end of 2009. Real estate sales in some cities began to pick up since April 2012. The company's town Jiangxi lotus pond project, the Wuxi nine cotton plot project and the red bean square project achieved good sales results during the reporting period, and the net sales revenue increased by about 350 million yuan. Up to the middle of 2012, the company received about 613 million yuan in advance. It is expected that the rebound in real estate sales will continue. The company's good sales will lay the foundation for real estate performance in the next two years.

Earnings forecasts and investment recommendations: the company expects earnings per share in 2012 -2014 to be 0.07 yuan, 0.09 yuan and 0.13 yuan. The development strategy of the company's clothing industry is very clear, that is, with the development of men's clothing chain monopoly as the core, strengthen the professional clothing group buying business, and rapidly expand the e-commerce channel. Chain monopolization, group buying and electric business and other multi-channel development strategies are conducive to the rapid expansion of the company's garment industry. Men's wear brand Enterprises have certain advantages in product design and production, providing strong support for the development of terminal retail. The more abundant land reserve and available resources enable the company to fully benefit from the current real estate rebound. The land resources acquired at a low price at the time of real estate downturn fully protect the profits of real estate projects and provide a good guarantee for the company's future performance. For the first time, the company increased its rating, and the target price of 6 months was 4.84 yuan, corresponding to 2 times PB in 2012.