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Apparel Home Textile Industry Suggests Paying Close Attention To YOUNGOR With Low Valuation

2012/4/27 9:28:00 20

YOUNGOR Brand Clothing Financial Investment

Textile manufacturing sub industry: textile manufacturing sub industry boom is still in the downward range, the external market demand is still relatively low, the overall volatility of the textile sector is more likely; clothing home textile sub sectors: in the case of corporate earnings decline and risk appetite decline, we maintain a relatively cautious view of the two quarter of this year.

Defense will become the main tone of the two quarter investment strategy, and relatively optimistic about the allocation value of the second tier blue chips.

In terms of allocation of stocks, it is recommended to pay close attention to the low valuation of YOUNGOR (600177).

Youngor

A quarterly report was released, a quarterly report basically met expectations, operating income fell 9.6% to 2 billion 54 million yuan over the same period, net profit after non recurring gains and losses increased by 72.8% over the same period; net profit attributable to shareholders of listed companies decreased by 34.3% to 256 million yuan, corresponding to earnings of 0.11 yuan per share, and the base met expectations.

Brand clothing

Business grew steadily.

In the case of stripping most of the export foundry business and recovering minority shareholders' interests, the net profit of garment business increased 25.9% to 265 million yuan in the first quarter compared with the previous year, and the textile business lost about 20 million yuan, while the net profit of textile and garment business increased by about 15%.

Real estate business began to enter the settlement period.

The first quarter confirmed that the real estate business revenue of about 500 million yuan, net profit of about 30 million yuan.

The large scale real estate settlement will start from the two quarter, with more high-end projects and higher gross profit margins.

It is expected that the annual revenue will be more than 5 billion yuan, and net profit will be more than 900 million yuan.

Financial investment

There is a slight loss in business.

The investment income in the first quarter dropped 62% to 206 million yuan compared with the previous year, including 185 million yuan in disposal of trading financial assets and available for sale financial assets, excluding the cost and interest expenses of financial investment business, and a net loss of 21 million yuan, a decrease of 265 million yuan compared with the same period last year, which is the reason for the decline of quarterly performance.

Developing trend

YOUNGOR will further concentrate its attention on the brand clothing industry of high value; actively contract textile and garment export business; the real estate business must first stabilize in recent years, and achieve cash flow balance in 2012. The direction of the future development depends on the policy direction of the new government; financial investment business will gradually reduce investment, but will not withdraw completely.

Profit forecast adjustment

The net operating profit of 2012/13 in the year of is unchanged.

Valuation and suggestion

The total NAV calculated by our division is 13.8 yuan, which has a margin of 33% compared with the current stock price.

Dividends continue to return to shareholders, dividends yield up to 4%.

After the company returns to the brand clothing main business, the future profit and cash flow will be more stable.

Maintain recommended ratings.