BELLE: Footwear Giant Mergers And Acquisitions Rich Product Line

In terms of sales revenue, BELLE international is China's largest women's footwear retailer.

The company sells eight brands of footwear products, including BELLE, Staccato, Teenmix and other two brands, which are mainly oriented to the mid-range market through the footwear business, and the two licensed brands.

Last year, many mergers and acquisitions were carried out in the field of brand leather shoes, which merged with Miu Li and Sunda, and extended their own brands to middle and low grade and medium and high grade.

After these mergers and acquisitions, BELLE not only increased the layout of the domestic footwear industry, but also became the leader of domestic men's shoes.

At the end of last month, the company announced a proposal to buy and privatize 1179.HK, another listed Footwear Company in Hongkong, at HK $6 per share, and the total purchase amount would reach HK $1 billion 672 million, equivalent to 20 times the forecast price earnings ratio in the 08 fiscal year, consistent with the original valuation of several pactions.

Its brand includes beauty Bao, Zhen Mei Shi and so on. It is also the sole agent for Caterpillar, Merrell and Sebago of women's shoes in the US.

At present, there are more than 460 outlets, including more than 100 in Hongkong and 340 in the mainland.

If the acquisition can be successfully completed, the company will push BELLE's product portfolio to further develop in the direction of high quality, and the brand of BELLE will increase from 8 to 14, covering almost all the people who benefit from the rapid growth of domestic economy, and the product mix will be further improved.

BELLE international has also put three of the four high-end brand shoes in the mainland into the bag, with a market share of 50%.

The market expects the deal to boost BELLE's profit 3%-4%

In addition to women's shoes business, the company also sells handbags and accessories, and is also one of the largest retailers in sports apparel in China.

First tier brands include Nike and Adidas's two major international sports apparel brands, including second-line brands including Reebok, Lining, Kappa and other well-known sports brands. In the first half of 07 years, the sales of front-line brands increased steadily, while the second-line brands accounted for about 33% of the total retail outlets in the first half of the year.

BELLE's international direct control and management retail network extends to 150 cities in more than 30 provinces, autonomous regions and municipalities directly under the central government, and a total of 35 retail outlets have been established outside the mainland (in Hongkong, Macao and the United States).

At the same time, the company also has excellent supply chain management capabilities. The cycle from design to shelf is much shorter than that of its peers, because it makes most of its products and establishes a national logistics system.

I believe that the company is gradually entering the threshold and gradually realizing the goal of integrating the industry, and the profitability of the future can be further increased.

investment risk

Risk of new business convergence development.

Rising costs, risk of gross profit decrease

Target price

About 9.7 yuan collection, 6 months target price 12 yuan, stop loss price 8.7 yuan.