标题：Jasan Holding Group Investment Value Analysis：Developing along the whole industry chain of socks
发布日期：2016-03-25 7:31:47
内容： A leading exporter of cotton socks The socks sector: stable demand and capacity reallocation inglobal stage, consumption upgrade in China Capacity expansion, and building “Jasan Home” to exploredomestic market Financial analysis: Strong and stable profitability with gross margin staying stable at 28~30% and netmargin 12~15%. The Company maintains an industry average turnover cycle of account receivables (99%of account receivables are received within less than 1 year). Its days of inventory are less thancomparables (96% of inventory is sold out within 6 months). Risks: (i) Slack capacity expansion and market exploration; (2) slow development of domesticproprietary brands. Earnings forecast, valuation and investment rating: As a leading producer of cotton socks, theCompany is pushing ahead with expansion of its domestic and overseas (mainly Vietnam) productioncapacities, and diligently exploring the domestic market via ¨Jasan Home〃. Its Chairman announces tosubscribe to 20% of the private placement (project has been approved by China Securities RegulatoryCommission), underlining the managementˇs firm confidence in the Companyˇs development prospect.Factoring in capacity ramp-up efforts and solid development of the ¨Jasan Home〃 business, we projectthe Companyˇ 2015/16/17E EPS to be Rmb0.37/0.52/0.67 and derive a TP of Rmb25.81 based on 50x2016E PE (average valuation of comparables is 62x 2016E PE, and average valuation of the textilemanufacturing sector is 25x PE) to reflect its fast earnings growth. Initiate OVERWEIGHT.
发布日期：2016-03-25 7:31:47
内容： A leading exporter of cotton socks The socks sector: stable demand and capacity reallocation inglobal stage, consumption upgrade in China Capacity expansion, and building “Jasan Home” to exploredomestic market Financial analysis: Strong and stable profitability with gross margin staying stable at 28~30% and netmargin 12~15%. The Company maintains an industry average turnover cycle of account receivables (99%of account receivables are received within less than 1 year). Its days of inventory are less thancomparables (96% of inventory is sold out within 6 months). Risks: (i) Slack capacity expansion and market exploration; (2) slow development of domesticproprietary brands. Earnings forecast, valuation and investment rating: As a leading producer of cotton socks, theCompany is pushing ahead with expansion of its domestic and overseas (mainly Vietnam) productioncapacities, and diligently exploring the domestic market via ¨Jasan Home〃. Its Chairman announces tosubscribe to 20% of the private placement (project has been approved by China Securities RegulatoryCommission), underlining the managementˇs firm confidence in the Companyˇs development prospect.Factoring in capacity ramp-up efforts and solid development of the ¨Jasan Home〃 business, we projectthe Companyˇ 2015/16/17E EPS to be Rmb0.37/0.52/0.67 and derive a TP of Rmb25.81 based on 50x2016E PE (average valuation of comparables is 62x 2016E PE, and average valuation of the textilemanufacturing sector is 25x PE) to reflect its fast earnings growth. Initiate OVERWEIGHT.
