Footwear Retailer BELLE: Reiterate Buying Suggestions

As the leader of footwear retailers in the mainland of China, BELLE has the most extensive retail network, which will benefit a lot from the increasing consumerism and the increasing disposable income in China.

After acquiring the brand of miaali and Fila, BELLE recently acquired the fifth largest footwear brand in China at a relatively cheap price.

BELLE now owns 5 of the top 10 brands, with a total market share of 21.5%.

After many years of winning the first place in women's shoes market, BELLE's market share in men's shoes has also climbed to the top.

As the largest authorized distributor of Nike and Adidas in China, BELLE will turn Fila, the world's top third fashion sportswear brand, into another Kappa.

Specific plans will be introduced in the first half of 2008.

Because BELLE has strong sales channels, our bank believes that Fila business will be successful.

Through the pformation of the commercial mode of Miao Li and sun Da to BELLE, which is more like demand driven by BELLE, the gross profit margin of these brands will increase significantly, and the profit margin will increase by 20%.

The Bank forecast earnings per share from 2007 to 2009 were 0.25 yuan, 0.29 yuan and 0.44 yuan respectively.

The bank reiterated the buying proposal with a target price of 14.55 yuan, equivalent to 50 times the 2008 P / E ratio.