Key points of the report
Event description
Guangzhou Langsha Investment Management Co., Ltd. (tentative name) was jointly established by Langsha Underwear, a wholly-owned subsidiary of the company, and Guangdong Sibaili. The registered capital of the newly established company was 2 million yuan, of which Langsha Underwear contributed 1 million yuan, accounting for 50% of the equity; In order to firmly transform into the field of Internet culture industry, the company announced its strategic investment in Oriental Huifu Hangzhou Angel Fund, with a strategic investment amount of 1 million yuan.
Event comments
Jointly establish a company and promote the strategic development of "Langsha" e-commerce project. The joint venture Langsha Investment Management Company will act as the e-commerce project operator of "Langsha" products to promote the strategic development of e-commerce projects. The company develops e-commerce projects, on the one hand, because the proportion of e-commerce in underwear products is relatively low at present and is expected to increase rapidly in the future, on the other hand, the company's product structure is based on close fitting underwear, which is easier to be networked than bra. Jointly establishing an e-commerce project operation company is conducive to integrating the resources of "Langsha" brand in WeChat, Tmall, Vipshop and other platforms, improving brand viscosity and building brand marketing in an all-round way.
Strategic investment in Oriental Huifu Hangzhou Angel Fund to transform the Internet culture industry. Strategic investment is the first phase of the Oriental Huifu Hangzhou Angel Fund jointly established by Oriental Huifu and Zhejiang Qianran to transform the Internet culture industry, with an investment amount of 1 million yuan. Oriental Huifu Hangzhou Angel Fund focuses on the early investment in the angel stage in the fields of mobile Internet, pan entertainment and intelligent hardware. The initial scale of the fund is 100 million yuan, the duration is 5 years, and the number of investment projects is not less than 15. As the project fund has inferior funds, the fund safety is guaranteed.
Business collaboration is realized based on large groups. In the medium and long term, asset injection is expected. Langsha Group, the controlling shareholder of the company, has many companies, including Hongguang Knitting, Microfinance, Anyang Photovoltaic, and Lanya Photovoltaic, integrating diversified businesses such as socks, underwear, clothing, finance, and home furnishing. The scope of consolidated financial statements of listed companies includes Lansa Underwear, a subsidiary, and Sukai Clothing, a subsidiary. In 2014, the company purchased 1681300 yuan of socks from the related party Langsha Knitting for combined sales with e-commerce underwear. The diversified business of the group and the main business of the listed company formed synergy. In addition, on August 28, the company announced that it would stop planning to raise funds for non-public offering of shares, which was intended to be used to purchase the assets of the project under construction of Lanya Film with an annual output of 50000 tons of high-performance packaging film new materials, and promised not to plan for non-public offering of shares within six months. Against the background of sluggish growth of traditional business, the company's asset quality has gradually recovered, and the scale of monetary capital has continued to grow. In the medium and long term, asset injection is still expected.
Give "overweight" rating. Against the background of sluggish terminal sales in the early stage, the company actively optimized channels and digested high priced inventory. At present, the inventory scale has dropped to a low level, and the company's performance is expected to reverse. At this stage, the company's e-commerce project strategy continues to promote and strategically transform the Internet culture industry. It is easy to achieve business collaboration against large groups. In the medium and long term, there is still an expectation of asset injection. We expect the company's EPS from 2015 to 2016 to be 0.03 yuan and 0.12 yuan, corresponding to the current stock price estimated at 251 times and 69 times. Give "overweight" rating.
