Red Bean: Supplier Consignment + Terminal Store Trusteeship

The actual controller and senior management level continue to increase in the proportion of high holding ratio, showing strong confidence in the company's pformation prospects.

The red bean group, the actual controller and the executives of the joint stock company and group began to increase their stock holdings at the end of the 2012 year end of the year. They experienced three two tier market holdings and a fixed increase. The total increase was 154 million. The estimated cost was 800 million. The average cost of the increase was not higher than 5.20 yuan yuan / share. After the completion of the increase, the shareholding ratio of the group and related parties to the stock company will increase from 48.14% to 59.66%.

Clothing business depth adjustment: supplier consignment + terminal store trusteeship, grasp the terminal efficiency improvement, improve the efficiency of supply chain on the basis of maintaining the integrity of goods, and make breakout with high performance price ratio products and efficient retail terminal.

Since 2011, the mens business of joint stock companies has entered a stage of deep adjustment.

On the one hand, we must focus on the construction of the terminal operation standard system, and enhance the overall retail sales capacity through direct management. On the other hand, we must cooperate with the suppliers to carry out the consignment mode on the premise of adhering to the overall product planning, so as to enhance the product cost performance.

We believe that the terminal retail capacity and product cost performance improvement is in line with the development trend of the industry, and the turning point of operation is 15/16 years.

The business diversification of the red bean group is specialized in the operation of the three listed platforms, and the layout of the apparel industry chain has been well established. The prospect of the joint-stock company's positioning as the core operation platform of the garment business is worth looking forward to.

The relationship between Hong Kong Group and stock company belongs to large group and small listed company.

In 2013, the scale of business was 24 billion 800 million total assets, 7 billion 900 million net assets, 16 billion 800 million income and 720 million net profit. Currently, the business is mainly carried out in four sectors, including clothing, tires, biopharmaceutical and real estate, and supplemented by the business layout of some financial sectors.

The red bean stock is the main operation platform of the red bean group's clothing plate business, and the clothing business layout at the group level is relatively perfect, and the profit scale is estimated to be nearly 500 million. First, from the group level, there are altogether five major clothing categories, household clothes, underwear, women's wear, children's clothing, and so on.

(ormosia), each category has formed a consensus in the direction of pformation. It will follow the adjustment mode of men's clothing. It is expected that after adjusting to a certain stage, it will form synergistic effect with men's business in the terminal form, and implement the whole series marketing strategy of red bean. Secondly, the textile material trading center + supply chain finance mode will create new growth points for the group clothing sector, and at the same time, provide effective for the main industry pformation.

Support, group layout in the financial sector will boost this process; in addition, the acquisition of resale licences for group mobile communications will also help the company to promote the implementation of the concept of "smart clothing". The company will use this business to carry out the development of information platform and open up the information communication channels of the upstream and downstream industries chain, and tap the value of the upstream and downstream industries and the intermediate links of the industry chain.

Investment recommendations: first cover the company's "recommended" rating.

The recommendation logic is based on three levels: 1, the confidence of the actual controller and management level is increased; the 2 is the completion of the pformation framework of the apparel business of the stock and group companies, and the turning point of operation is approaching; 3, the layout of the group clothing business is perfect and the imagination space is huge, and the joint-stock company as the main platform of the clothing sector has the expectation of reasonable asset integration.

Up to this (4 billion market value), we still emphasize the long-term investment value of the company and recommend long-term investors to pay close attention to it.