EVK still on line with business forecasts.....another impressive quarter.
What is definitely noticeable is :
1- the average same store sales in Q4 (more than 14K$ per shop per month) that shows constant increase and adoption of LA GO GO trade on the chinese market. This is really key since this retail is the highest profitable and growth area for EVK.
2- the growth sustainability over time since margins of both wholesale and retail are under control while the compnay is at the same time developping retail business and promoting LA GO GO trade.
3- visibility as well as confidence on the future business since EVK is now delivering its objectives quarter after quarter since two ears from now.
Considering that EPS will move around 0,8 in 2012 and that PE ratio should increase considerably at the same time, i consider that EVK is a strong opportunity at this price (9 to 12$ per share is something achievable in two years from now).
Funny thing is they forecast the wholesale business weakness and went for the domestic GoGO Store sales and new openings. Doing this by design. Now they have an increased traffic and nobody gets whats going on. I laughed and bought back in.
Ever-Glory operates its own domestic chain of retail stores known as "LA GO GO." Ever-Glory also has three subsidiaries, Goldenway Nanjing Garments Co. Ltd., Nanjing New-Tailun Garments Co, Ltd. and Nanjing Catch-Luck Garments Co., Ltd. Ever-Glory has strategic business partners in countries including China, Europe and the U.S. Ever-Glory has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as ITOCHU, ABERCROMBIE & FITCH (ANF), SHINKO, DEBENHAMS, NEXT, OTTO, C&A, I.Y., etc. in handling high- and middle-grade casual-wear and sportswear. The company entered into production and sale cooperation agreements with a number of internationally famous brands such as MATALAN, EB, BEST-SELLER, BB DAKOTA, FAT FACE, LINDEX, and JUST JEANS, etc.