The leisure wear market has great potential. Semir has carried out the reform steadily and achieved the actual results. We expect to make breakthroughs in the following period: 2012, Semir began to adjust its operation since the beginning of the year, and promoted a number of reforms, such as channel adjustment, strategic change and business model Reengineering.

Business reengineering is about to be completed, and the market is pferring to the three or four line to enter marketing promotion.

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In terms of performance, Semir brand has slowed down its revenue in 2013 years, and its gross profit margin has stabilized at around 33%.

The expansion of business channels and multiple brands will help us to see the scale expansion in the long run. 1) two child policy and a new round of baby boom will accelerate the growth of the domestic children's wear market. At present, the market share of the top brands in the industry is around 1%-2%, and the market concentration of children's clothing needs to be further improved.

In the short and medium term, Barbara will focus on promoting channel construction. There will be more room for growth in the number of stores. The average area of shops will maintain a rapid growth of more than 10% a year, and the leading edge will further expand.

2) the newly established minibalabala, mongdodo, and Sarabanda brands such as Italy Sarabanda will be complemented by their own businesses.

3) company identification only focuses on the unsustainable development channels, and the steady and steady expansion still depends on the improvement of product cost performance.

We have invested heavily in design research and development, engaged in international teams, and received high praise for product design and quality.

The experience of foreign children's clothing market suggests that the orientation of children's clothing will become mainstream; diversified children's industry is icing on the cake: Children's clothing market consumption is likely to be polarized to cheap brands and high-end brands. Under the new normal situation of slow economic growth, the price performance advantage is still the king of children's clothing market, and the mass parity brand will eventually occupy.

The diversified child industry chain breeds new growth points, conforms to the development trend of the industry, but has limited promotion to the main garment industry.

Investment advice.

We believe that the overall operation of the company is steady and the reform is proceeding orderly. The leisure wear reform has entered a new height. The children's clothing business has been growing continuously in the short term, and diversified businesses such as multi brand, special supply of electricity providers and early education have laid broad space for further development.

Maintain the recommended rating and increase profit forecasts. It is estimated that 2014-2016 diluted earnings per share will be 1.71 yuan, 1.92 yuan and 2.20 yuan per year.

Risk.

The continuous downturn of the macro-economy makes the consumer market hard to pick up; the market size of n children's clothing is growing less than expected, and domestic and foreign enterprises are becoming more competitive in the aspects of brand, product and price. After the pformation of N leisure clothing business mode, brand remolding and marketing promotion can not achieve the desired effect.