Category: Money Tips Date: 2007-05-18
Company zipper industry leading enterprises, we are in 2006 and future production and sales of various products and production capacity, price to understand, but also understand more concerned about the fundraising progress of the project and future corporate development strategies.
Zipper industry leader to face a major development opportunity for the industry
Xun Hing shares significant opportunities facing the development of the industry
From a global point of view, Xun Hing shares as annual sales of nearly 6 billion manufacturer of professional zipper industries in which the current status as the world's second ranked first in the Japanese YKK annual sales of 160 billion, while the steep bank Hing shares YKK product quality and gradually move closer together with the cost advantages are obvious, making the future, the possibility of an alternative YKK increased, and a huge room for growth.
From a domestic perspective, industry concentration is very low, except Au Hing than 300 million yuan with annual sales of around zipper manufacturing enterprises is only 2-3 at home; 2, due to high-end zipper technology, higher entry barriers, difficulties in other domestic enterprises to enter the more zipper Great. So on the one hand the domestic competitors Xun Hing shares is difficult to form an effective threat to the future for the company the other hand, provide opportunities for industry consolidation, coupled with the domestic apparel consumption market to benefit from the rapid growth of Au Hing shares of face development of the industry golden age.
Nationwide distribution company are subject to regional restrictions will make the situation will be improved
At present the company the biggest problem facing the development is: the limited capacity of matching services caused by product sales area is limited to a radius of 400-500 km range. Consumption of textile and apparel products, the pursuit of individuality, the brand have become the mainstream of development, which requires clothing enterprises to quickly respond to market the products tend to be small-volume, multi-species, as a clothing accessory products, manufacturers want a fast track service accordingly. The Xun Hing shares only in Jinjiang, Shanghai and factory, for orders within the scope far far behind, so after the money market to ease the tension of the situation, the company considering using their own capital in the layout of the establishment of processing plants throughout the country, to solve the company's services and the capacity of the geographical constraints.
Surge in the cost impact of the financial benefits in 2007 will be greatly improved
Financing pre-IPO companies rely mainly on short and long term bank loans, resulting in high interest costs, financing costs are relatively high, resulting in the company nearly two years of financial costs and asset-liability rate remains high, the situation was eased after the listing in 2007, finance charges there will be more significantly reduced.
Investment rating to buy
We believe that the Xun Hing shares in the industry has obvious advantages, the products focus on the zipper of production, R & D and manufacturing and has a global vision in line with a "hidden champion" of all the conditions, coupled with the industry outlook optimistic about the platform of listed companies more of a solution of the capital, talent and brand bottlenecks, have enough room to grow. Combined company's status and the 2008 fund-raising performance of the project is put into production forecast substantial growth ,2006-2008 net profit growth were more than 30%, we follow the 2008 performance of 0.62 to give the company 30 times earnings valuation of shares obtained The secondary market price of 18.6, the current market price of 12.43 from the target price 50% of the rise, the investment rating to buy.
