Newest grade

Incident: We made prosperous undertake on-the-spot survey to Ruibeika to Henan recently, undertook deepening communicating with the tall canal such as company president. Ruibeika is bibcock of domestic wig industry, main product includes craft clockwork spring, chemical fibber clockwork spring to wait, hairpiece of female outfit hairpiece, head teaching practice, white man and men's clothing headgear. We understand, company share price is behaved since this year August not the main reason of beautiful depends on partial investor developing home market to know inadequacy to Ruibeika. In fact, the company should appreciate to the RMB adopted rise in price, base of the production outside enlarge sea and enlarge home market to wait a series of " assorted fist " ; Additional, the company is noting what chemical fibber clockwork spring increased while everybody sends reserve to produce can. Can foreknow, company future outstanding achievement still presents high speed to rise situation, home market moves and chemical fibber hair is produced can outspread bring outstanding achievement growth to will erupt centrally 2009. We keep predicting company 2007, EPS will achieve 0.8 yuan respectively 2009, 1.25 yuan mix 2 yuan. Company estimate value is 60 yuan, compare price Shang Youju's at present big rising space. Integrated consideration, we give Ruibeika " buy " investment grade. Home market is sold first half of the year not beautiful results from statistical caliber problem. The company began to extend home market actively last year, but half annals shows domestic sale still has first half of the year this year relatively drop substantially. We understand, this basically is the problem of statistical caliber respect. Lucky shellfish blocks a sale to be given priority to with export before, the fragmentary sale in home is to carry domestic agent, sell directly in home partly among them still the part exports a sale through the agent main abroad, accordingly, home of before making a few years is sold " empty is tall " . But begin from this year, the company changed the sale strategy in home, cancelled domestic agent link to sell the market in order to unite home, and of the direct sale of the one door inn that the company is in Beijing and Xu Changben ministry custom-built brought income adds up to 1.6 million yuan, not as good as the sale of original home agent, because this is corresponding,domestic income decreases. The company should appreciate to the RMB with rising in price, still will undertake the 2nd times rising in price inside year. At present main still in order to exports the product of the company, future is in advocate the exit in battalion income still can be held quite specific gravity. Appreciate to answer a RMB, ruibeika rises in price to main hairpiece product first half of the year 18 - on the foundation of 22 ％ , still will undertake the 2nd times rising in price inside year. In forehead of exit of former only company, north America occupies 60 ％ left and right sides, europe occupies 12 ％ , africa occupies 20 ％ left and right sides. October, the company's mainest North America travelling merchant makes card of prosperous luck shellfish discuss lucky specific plan in the future. We predict to rise in price this extent is in 20 ％ above, and high-grade product still is on product structure rise in price extent is more than cheap product rise in price extent; Predict to rise in price time is in this year in November. Begin actively abroad manage, reduce labour force to produce cost. The company had established a branch in Europe and Africa, one of among them purposes are press close to consumes the ground to enlarge a sale; Additional grandfather manages active overseas creates manufacturing base, produce cost in order to reduce labour force. Current, the company has owned a plant that 3 million chemical fibber sends year of productivity in Nigeria. The hairpiece that the company plans to did not enlarge Africa is produced, produce the factory spread of Nigeria to produce per year the base of 15 million big braid; In the meantime, the company still plans to build a manufacturing base that produces per year 10 million big braid in Ghana. We understand, in Africa price of a big braid is 1 dollar above, every profit is 0.5-0.6 dollar. If two this of Africa big braid produce base building, will give a company annual new the income that brings above of 30 million dollar and the net gain of at least 15 million dollar. Additional, the company still will plan to build hairpiece to produce base in Indonesia henceforth, with reducing manufacturing cost further. We understand, at present the standard of congener worker pay of Indonesian production base makes the in part of prosperous only. Extend home market actively. Early of company management layer realized the value of development home market. If 500 thousand person of domestic year use a wig, every hairpiece 1000 yuan, with respect to sales revenue it is 500 million yuan; If have 1 million person, criterion sales revenue will achieve 1 billion yuan. Ruibeika is detonated " the fashionable dress on the top " mad current home " the fashionable dress on the top " popular trend already was detonated by the company. Because the product gives consumer brought effectiveness,the formation that fashionable hairpiece consumes popular trend is on one hand very apparent, the advertisement that is company great strength on the other hand led the market effectively to consume an idea. The company planned to increase advertisement to publicize strength 2011, the effect that the advertisement investment 2010 produces returns what there will be advance gradually type in future to reflect, because this our judgement home is fashionable,hairpiece consumes demand to will continue explode type grows. We predict company 2010-2012 year EPS is respectively 0.27, 0.56, 0.87 yuan, target price 20 yuan. . . Accordingly, home market cannot be looked down upon. Realize this just about, the company is directional last year add hair collect capital to cast to include domestic sale network to build. On Feburary 9, 2007, the hair products brand shop of high-grade consumption crowd in fixed position of company head home already kicked off smoothly at Beijing, indicate retail trade Wu pulls open a domestic brand that the company brews a long time formally prelusive. The company plans to will open store of the 3rd door in Beijing on October 25, the 4th is opened again even before the end of the year. The inn of the 2nd door of the company is divided outside continueing to roll out high-grade finished product to deliver product, the 2nd inn will roll out the custom-built business that is aimed at trichomadesis crowd technically, with covering more consumptive groups stage by stage. whole, the 4 doors inn of Beijing goes high end, high-grade to mix entirely small numerous the way that changes a service, the company also will last in the door inn of other country town this one train of thought. About channel choice and outspread plan, the company also has clear program to prospective home market. The city regards the style of a few home such as Shanghai of company first selection, Dalian, Chengdu, Chongqing and Guangzhou as one class city, after inn of door of one class town accumulates certain experience, wide action businessman joins in the professional door store that runs 2 class city. The door inn of one class town of company plans to be located in high-grade shopping centre entirely, storefront is given priority to with hiring, the area asks to be in commonly above of 200 square metre, cent is show a region, try area, build a few parts such as the area. The Puxi that plans to be in Shanghai before the end of the year this year and Pudong build one door store each. At present the company organized two sale forces technically to be in charge of the construction of domestic sale network. After the sale network of Shanghai builds, guangzhou of the march to on partial forces horse; After the sale network of Chengdu builds, partial forces heads for Chongqing immediately. If successful word, the site laid of one class city will have 10 the eastpart part 2008 end, began these door inn to will bring bigger income and profit to the company 2009, home market income and profit will add considerably again 2010. Basically pass the channel such as TV medium, fashionable magazine and foldout advertisement sheet to undertake popularizing in Beijing area company at present, its plan to be achieved in domestic retail channel a certain quantity of hind, company follow-up is likely CCTV of have the aid of rolls out a face to accept numerous brand propaganda to the whole nation, with lead and developing domestic hairpiece market. Which are the cheapest