Fashion jewelry chain positioning

 Company is engaged in high-end fashion jewelry product design, development, production and sales, the main products for the K gold jewelry, the core business is " Acer " and "VENTI" two jewelery supplier brand chain management . Company industry development goal is to become a leader in fashion jewelry brand ; 2012 implementation has 500 marketing network.

    Company based in East, South and Northeast markets , based on the commitment to develop regional markets across the country , expanding the southwest, central and other regional markets. Have been formed covering 27 provinces more than 80 major cities, with 279 brand franchise stores sales network. At present the company to adopt self-oriented , non-branded wholesale brand agency and marketing model , supplemented by the compound .

    The past two years , the company's main revenue growth rate reached an average of 38% faster growth . In 2008 the company sales volume is only 4.49 million within the industry is still small enterprises ; company positioned higher margin K gold and platinum jewelry , determine the company's net profit was higher than other companies in the same industry .

    Investment Highlights : Industry development prospects ; K gold jewelry manufacturer products to mainly industrial trend and high margin ; "brand management + Product Design + chain sales " integration of the profit model ; production design capacity prominent ; has a certain brand awareness ; chain of outlets throughout the country , relying on department store sales channels .

    The company intends to open the public issuance of RMB 30 million ordinary shares , to raise funds to be invested in two projects: plans to build 100 self-operated stores , including five flagship stores, 15 stores and 80 store associates , and to build a a terminal management training center ; will build 15,000 square meters of production plant and 3,000 square meters of brand design and development center , production capacity will be expanded to three times now .

    2009-2011 the company expects revenue from principal operations was 5.45 billion yuan, 649 million , 770 million ; net profit of 81.98 million yuan , 105.37 million yuan , 134.89 million yuan , the growth rate was 59.7 %, 28.5 %, 28% ; earnings per share 0.75 yuan , 0.96 yuan , 1.23 yuan .

    Reference 43 times the industry average in 2009 and 2010 34 times earnings given a reasonable valuation range 30.00-32.60 yuan, the proposed price range in 24.00-26.06 yuan, according to 2009 EPS was 34-35 times earnings .

    Risk: the increasingly fierce competition in the industry , a second-tier cities are faced with strong brands ; tidal Acer industry compared to the old Phoenix , Asian one , the old temple , Chow Sang Sang , Chow Tai Fook , TSL , brand history is short, relatively low brand awareness , brand advantage to be to continue to improve ; company's sales channel development are highly dependent on the department store .we are OEM jewelry factory