INVESTMENT OVERVIEW

Naibu is a significantly underrated sportswear manufacturer in China.

June 13 Accounts - Net cash of £41m exceeds the current market cap of £35m, Net Asset Value is £120m (£2.18 per share)

At the end of April 2013, the Company held its Autumn and Winter fair with distributors, the value of sales orders showed a 17.8% increase on the equivalent fair last year.

The Group achieved record half-year sales of RMB950.1 million (approximately GBP100.8 million), an increase of 20.5% over the same period in 2012. Pre-tax profits for the same period rose 16.1% to a record RMB214.8 million (approximately GBP22.8 million). EPS 2.9 RMB (30.8p)

http://uk.finance.yahoo.com/news/interview-chinese-outfit-naibu-global-135900100.html

http://www.brrmedia.co.uk/event/116535/giles-elliott-non-executive-deputy-chairman

2013 est. EPS 55.4p, Dividend 6p - Giving current P/E of 1.2x and a Yield of 9.2%.

Company broker Daniel Stewart rating - Buy - Target price of £2.

Results roadshow planned for week commencing 23rd September


COMPANY WEBSITE

http://www.naibu.com/websale.asp

http://www.naibu.cn/


MEDIA

Trade fairs

http://v.classone.cn/cshow/DB7BZ4K4.shtml

http://video.sina.com.cn/v/b/91083825-1997490623.html

Television advertising

http://v.youku.com/v_show/id_XNDAxODY4NTc2.html

http://v.youku.com/v_show/id_XMjg1NjAyMjky.html



OPERATIONS OVERVIEW

Naibu is the no.10 sportswear manufacturer in China with 25 distributors and 3,140 retail outlets, primarily in Tier 2 & 3 cities. It is based in Fujian province, with its H.O. in Fuzhou and two factories in Shishi City and Jinjiang. Naibu have a total of 2,315 staff. Just under 2,000, were employed at the Group's production facilities in Jinjiang and Shishi, with most other staff based at the Group's HQ in Fuzhou.

The Naibu brand is focussed on the fast growing student and young adult market. 55% of revenue comes from sale of shoes, 42% from clothing and 3% from accessories. Around two thirds of shoes are made in-house with the remainder manufactured by original equipment manufacturers (OEMs). All clothing and accessories are manufactured by OEMs.

Naibu operates a wholesale model, whereby it sells to 25 distributors in 21 provinces and three municipalities across China. Naibu enjoys good visibility of revenue: the group holds two trade fairs each year to showcase the new collections for the forthcoming two seasons after which the distributors place orders to which they are committed. Naibu does not carry stock risk as goods are sold to distributors on a ‘no returns’ basis.

Naibu continues to gain market share and plans to build two new factories which will double capacity and will be materially earnings enhancing.


SHAREHOLDER INFORMATION

Shares in issue 54,838,716

Significant Shareholders on 18th September 13

Central Win Global Investments Ltd: 50.03%
Easy Capital International Ltd: 8.42%
Montoya Investments Limited 6.6%
Hargreave Hale Limited 6.5%
Black Rock Invest. Management (UK) Ltd 1.76%


FURTHER INFORMATION AND LINKS

http://www.theel1tetrader.com/2013/09/camkids-naibu-global-two-undervalued.html

http://www.investorschampion.com/research/company/naibu-global-international-co/

http://www.sharesmagazine.co.uk/articles/naibu-ready-to-cut-a-dash#.Uix_uD-KM3g

http://www.cityconfidential.co.uk/2013/09/18/naibu-global-64-5p/

Still edging up that gap.

I'm tempted to get in because this one is so so cheap but something makes me feel uncomfortable. It's the "too good to be true" feeling.

Central Win Global Investments Ltd: 50.03%

So effectively that is the controlling entity.

Unaudited Interim Results

Naibu Global International Company Plc(AIM:NBU), a leading Chinese manufacturer and supplier of branded sportswear, today announces its unaudited interim results for the six months ended 30 June 2014.

Highlights

- Revenues for H1-2014 increased by 8.4% to RMB 1,029.9 million (approximately £98.1 million) (H1-2013: RMB 950.1 million)
- Profit before tax for H1-2014 was RMB 206.5 million (approximately £19.7 million) (H1-2013: RMB 214.8 million)
- Earnings per share for H1-2014 of RMB 2.59 (H1-2013: RMB 2.90)
- Nil interim dividend for the period due to significant capital investment in the coming year (2013: 2 pence)
- Group balance sheet with cash position of RMB 332.7 million as at 30 June 2014. The Group has no outstanding bank loans or overdue debt
- 3,192 Naibu-branded stores in total (H1-2013:3,144)
- R&D expenditure in H1-2014 accounted for 1.7% of turnover (H1-2013: 1.4%) with further strengthening of R&D investment going forward

The illustrative exchange rate as at 30 June 2014 is 1 GBP : 10.4978 RMB.

One to watch for recovery later....not in but will monitor...

Too risky for me.

Best left alone imo.

Nice rise today though. Still watching here.

Trading Update

Suspension of trading in the company's shares

The Non-Executive Directors of the Company have requested suspension of its shares pending clarification of its trading position.

- Ends -

Resignation of Nominated Adviser