Shandong Ruyi: Pactions Quickly Enlarge The Main Funds Intervene Significantly

Fundamentals

The company is mainly engaged in worsted fabrics. The product adopts high-end positioning with "high added value, high technology content and high quality". It has the core technology of the leading international bar making, dyeing, spinning, weaving, finishing and testing technology. The product is at the high-end of the wool spinning industry, and has a strong ability to pfer product prices.

According to international practice, the company developed and developed new wool fabrics one year in advance, and improved the adaptability, comfort, fashion and functional requirements of the products. It cooperated with the China Textile Information Center and the national textile product development center and became the first Chinese enterprise to display products at the exhibition center of the European Exhibition Center.

The "Ruyi spinning" technology developed by the company has won the first prize of national science and technology progress. This is the first time that the Chinese textile industry has won the honor. It also indicates that the company has reached the peak of world textile technology.

Market side

The company's 10 quarterly three quarterly report shows that sales revenue has reached 389 million yuan, an increase of 17.55% over the same period last year. Net profit of the parent company was 35 million yuan, an increase of 4.15% over the same period last year. The core net profit was 1 billion 29 million yuan, down 8.04% from the same period last year.

The gross profit margin in the three quarter was only 24.63%, the lowest in recent years, mainly from the decline in foreign markets, especially in the US market.

Because the products in the US market are lower than the European market, the competitive advantage is not strong, and the recovery rate of the US economy is slow, the company accelerates the channel development of the domestic market and the Asian market, and the contribution of the domestic market to the performance will be higher and higher in the future.

In the interim report, the contribution of domestic market to income and gross profit has reached 68% and 83% respectively.

The optimization and integration of the channel structure will lay a solid foundation for the rapid growth of the performance next year.

Value judgement

In the two tier market, the stock market has been running upstream against the market in recent years. The volume of funds has been rapidly enlarged and the main funds have been involved. With the continuous recovery of the global economy and the current high inflation pressure, the wool textile industry has greater opportunities.

Investors can watch closely.