Jinfeida Garments Co., Ltd.: Wind Power Is The Future Focus

Jiangsu Jinfeida Garment Co., Ltd. is mainly engaged in the production and sales of women's clothing. More than 95% of its products are exported to the United States, and the global economic crisis As a result, the profit has declined significantly since the second half of 2008. According to the understanding, the company's orders are gradually rising compared with the first three quarters. The orders of the three major production entities, Jinfeida, Jinfeixiang and Jinfeiying, have been placed at the end of 2009 or even before the Spring Festival. However, the price and structure of orders still need to be improved. It is estimated that the time to establish export recovery is in the second half of 2010.

As a pure OEM enterprise The company has also been actively seeking to adjust its business strategy. We believe that the future focus of the company's main clothing business lies in two points: (1) the change of sales strategy - to set aside intermediate importers and directly face sales customers to obtain higher profitability (2) to strive for the opportunity to obtain its own brand - the company currently holds nearly 300 million raised funds, without any debt, There are potential opportunities to acquire foreign brand clothing enterprises in the future.

The biggest focus of the company in the future is in the field of wind power equipment. Nantong Hongbo Wind Power, with a 28% stake, has entered a profit period in 2009, and will further expand its capacity in the future. The company may share the stable growth of investment income.

In addition to the company's participation in wind power enterprises, the company's controlling shareholder, Jiangsu Dior Holding Group, recently established Jiangsu Mingyang Wind Power Technology Co., Ltd. in a joint venture with the top five Guangdong Mingyang Wind Power Group in China, of which Jiangsu Dior Holding Group has a 40% stake. The joint venture is mainly engaged in the production and sales of wind power generators and blades, and it is expected that the products will be officially offline in April 2010. We believe that in the future, Jiangsu Mingyang Wind Power Technology Co., Ltd. can not only share the mature technology and management experience of Guangdong Mingyang (also has successful experience in the field of offshore wind turbines), but also share the natural wind power resources and good sales guarantee of Nantong. Recently, Mingyang signed an agreement with four major power generation groups and Nantong City for the first phase of 3.15 million kilowatts, Therefore, the future business prospects are very promising. It is cautiously predicted that the investment income obtained by the controlling shareholder from Jiangsu Mingyang in 2010 will reach the profit level of the joint-stock company in 2009.

As the only listed platform under the group, we believe that the company will not rule out the possibility of obtaining more wind power business resources in the future, which will be a qualitative leap for the company's current equity, business attributes and profit scale.

　　 investment risk : The uncertainty of Jiangsu Mingyang Wind Power business investment and income generation, and the uncertainty of whether the company's controlling shareholder will inject 40% of its equity into the company.