The core business is FION (Fei Anni) fashion handbags brand operators

Main business for the Asia-Pacific market FION (Fei Anni) well-known brand of high-end handbags operators: Fei Anni Leather Co.,Prada Trainers. is engaged in the design of high fashion leather goods, R & D, production and sale of the core business FION (Fei Anni) fashion female package brand operators.Brand FION company founder Mark Yiu Hee in 1979, was founded in Hong Kong in the positioning of the customer base for the urban women from its Taobao flagship store pricing point of view, FION handbag 1000-3000 yuan, wallet 500-1000 yuan.The FION in the early 1980s began to enter the Japanese market, after FION have moved into Macau, Taiwan, Singapore, Malaysia and Indonesia, to this the internationalization of FION brand initially formed.In 1992, FION began to enter the Chinese mainland market.After continuous development, Today FION, has become one of the leading brand in the Asia-Pacific market in the high-end handbags.Strategic cooperation is conducive to the company promoting the strategy of "diversified operations in high-end fashion goods: tidal Acer will cooperate Fei Anni channel expansion, take advantage of the influx of Acer's channel resources, especially in the eastern and northeastern department store channel resources for the Philippines Anne expansion of the sales network to provide support.The two sides will also parties to brand management cooperation, including media resources, brand promotion, membership and resources in order to promote the two sides to enhance brand image.We believe that both sides of the amount of strategic cooperation will help further consolidate the Company "tide Acer jewelry brand in the field of domestic fashion jewelry leadership position while also positioning the company will effectively promote the strategic objectives of the" high-end fashion consumer goods multi-brand operators implementations.Prada Handbags uk. Financial performance, Fei Anni year 2011 operating income of 268,251,700 yuan, net profit of 90.3063 million yuan.Proportion of the acquisition of 34%, after the company acquired Fei Anni, the thickening of the company EPS 0.17 yuan (2011 Fei Anni 90.3 million net profit, tidal Acer 180 million share capital, 9030.63/18000 * 34% = 0.17 yuan) . If the acquisition of 50% / 75% / 100%, thickening the company EPS of $ 0.25/0.38/0.50.Not yet the public Bufeianni specific operating data as well as tidal Acer acquisition of the equity price, the valuation of hard to determine, but we believe that by virtue of its design, research and development, production, sales for the integration of a complete industrial chain, brand awareness, as well as the subject of handbags scarcity in the A-share market, the expected price-earnings ratio of about 10-15 times the influx of Acer equity FION acquired more reasonable.Short-term cost pressure and maintain our overweight rating: the strategic cooperation details were not disclosed, we temporarily maintain the company 2012-14 EPS of $ 0.73/0.88/1.08, 2011 as the base period next three years CAGR8.8%, 6 month target price of 20.0 yuan, corresponding to 2013 23X earnings (combined growth given the brand class industry valuation).We believe that the texture and management capacity of the company itself, a more robust differentiation K gold operations and the strengths of the diamond products favor of competitive differentiation in the gold jewelry sub-sectors,Prada Outlet. the development of the future goal of the company to a diversified high-end fashion consumer goods carriers help enhance brand synergies; short-term, new stores and the renovation of the original store upgrades result in expenses for the period rose sharply, affecting the profit release, maintain Outperform rating.Risk Warning: Gold prices have fallen sharply leading to substantial inventory impairment.