Jihua Group: Attaches Great Importance To The Relevant Standards For The Reform Of State-Owned Enterprises During The Two Sessions

Event review: in 1 and February, the PMI index was 49.9%, a slight increase of 0.1 percentage points from last month, indicating that the contraction of manufacturing industry has narrowed.

2, 2015, the golden week of the Spring Festival, the retail sales volume of 100 large retail enterprises decreased by 1.8% compared with the same period last year, of which apparel retail sales fell 0.5%, down 0.8 percentage points compared with the same period last year, and the retail sales of cosmetics decreased by 0.7% compared to the same period last year, narrowing 11.4 percentage points compared to the same period last year.

Apart from the economic downturn, restrictions on official consumption and the influence of rain and snow, holiday consumption is shifted from commodity consumption to entertainment and tourism service consumption.

3, the central bank announced on 28 that the one-year deposit benchmark interest rate was reduced from 2.75% to 2.5%, and the one-year lending benchmark rate fell from 5.6% to 5.35%.

4 and 2015, the two sessions will be held in Beijing on March 3rd and 5.

Industry and company tracking:

(1)

Tracking: the company sold well in 1-2 months, and sales in December increased by 40%+ compared to the same period last year.

From the perspective of the sales before the Spring Festival, the retail sales of all the stores in the country started to increase in February 13th, breaking through the daily sales of 200 million yuan in February 13th and breaking through the sales volume of 300 million yuan on the 17 day.

Recently, the share price of the company has increased considerably, but we are still firmly optimistic.

(2) Shanghai home tracking: the shareholders meeting of the company examined and passed the bill on the relocation of the investment Qingpu base, and the relocation address of the new factory in Shanghai made the Qingpu Industrial Park about 216 mu of land, and the investment scale was about 1 billion 350 million yuan, of which 666 million Yuan came from the compensation payment, and was expected to be put into operation in 2018.

The company expects to carry out stock incentives for the new backbone this year.

(3) Jiaxin silk performance Bulletin: in 2014, the company realized an income of 2 billion yuan, an increase of 10.6% over the same period last year, and realized a net profit of 73 million 190 thousand yuan, down 8.6% from the same period last year; EPS was 0.28 yuan.

We have long been optimistic about the financial business of China's cocoon and silk supply chain, which has been completed closed loop, with expected varieties, and is expected to contribute to profits in 2015.

(4)

Performance Bulletin: the company realized revenue of 8 billion 160 million yuan in 2014, an increase of 11.9% over the same period last year, and realized net profit of 1 billion 90 million yuan, up 21.1% from the same period last year, EPS1.63 yuan.

It is expected that the leisure wear business will achieve a restorative growth in 2015, and children's clothing business will maintain a high growth.

(5) performance Bulletin of 100 round trousers industry: in 2014, the company realized revenue of 840 million yuan, an increase of 88.6% over the same period last year, and realized a net profit of 34 million 770 thousand yuan, an increase of 10.4% over the same period last year; EPS was 0.24 yuan.

The improvement in revenue and performance was mainly due to the 11-12 month round table of Tesco.

(6) Jia Linjie's performance Bulletin: in 2014, the company realized an income of 880 million yuan, down 1.8% from the same period last year, and realized a net profit of 24 million 80 thousand yuan, down 75.6% compared to the same period last year; EPS was 0.029 yuan.

(7) tracing the birds of good fortune: in 2014, the company realized an income of 2 billion 270 million yuan, an increase of 12.5% over the same period last year, and realized a net profit of 130 million yuan, down 18.4% from the same period last year; EPS was 0.22 yuan.

The company intends to distribute cash dividends to all shareholders every 10 shares of RMB 0.5 yuan (including tax), and add 10 shares to every 10 shares.

(8) Huafu color textile tracking: in 2014, the company realized revenue of 6 billion 130 million yuan, down 1.7% compared to the same period last year, and realized net profit of 200 million yuan, up 0.49% over the same period last year; EPS was 0.24 yuan.

(9) Hinur's performance Bulletin: in 2014, the company realized an income of 1 billion 30 million yuan, down 18.3% from the same period last year, and realized net profit of -4615 million yuan, down 164.6% compared to the same period last year; EPS was -0.14 yuan.

(10) Wordsworth performance Bulletin: in 2014, the company realized revenue of 834 million yuan, an increase of 30.6% over the same period last year, and realized a net profit of 95 million 270 thousand yuan, an increase of 13.1% over the previous year; EPS was 0.56 yuan.

(11) YOUNGOR tracking: the joint venture enterprise of hemp industry is planning a major asset reorganization.

The company is the controlling shareholder of hemp industry, holding 78 million 450 thousand shares of the hemp industry, with a shareholding ratio of 30.08%.

Last week

The plate is stronger than the market.

Textile and apparel index rose 4.31% last week, up 0.52% from the Shen Wan A index.

Among them, the textile manufacturing index rose 5.69%, relative to Shen Wan A index rose 1.90%; clothing home textile index rose 3.10%, relative to Shen Wan A index fell 0.69%.

Our view:

Concerned about the reform of state-owned enterprises during the two sessions, the Chinese group will continue to recommend Hai Lan's home and Jiaxin silk.

(1) the two sessions will be held in Beijing in the first week of March. It is expected that the reform of state-owned enterprises will be the focus of the conference.

Shanghai's state-owned enterprise reform target Shenda shares and leading shares and Shandong state-owned enterprise reform's China Textile shares.

(2) in February 28th, the central bank lowered interest rates, the textile industry with a favorable debt rate and a stable dividend yield, and cotton prices stabilized. The industry performance in the next 15 years is expected to achieve a resumption of growth in the textile industry under the replenishment cycle of A.

(3) in February 27th, the tenth meeting of the leading group of the central comprehensive deepening reform was held in Beijing. The general plan for China's football reform was deliberated and passed.

(4) continue to recommend Hai Lan's home and Jiaxin silk, seize the opportunity of short term callback: Hai Lan's home, its performance continues to grow at a high level. It is expected that the performance of 15 years will grow by 30% over the same period. The mode innovation and limited management can be regarded as the industry model. Jiaxin silk has long been optimistic about the supply chain finance mode of the company, and it is expected to make profits in 15 years.