Eratat Lifestyle – to ride on China’s domestic consumption theme?
China is slowly changing its reliance on export to more of a domestic consumption focus. One such company which may be able to ride on this domestic consumption story is Eratat Lifestyle. (“Eratat”) Description of Eratat Eratat started as a sports shoe / sportswear company and moved into the design and distribution of lifestyle fashion apparel under its proprietary brand “ERATAT” (“ 鳄莱特”) about 3-4 years ago. Please refer to their company website http://www.eratatgroup.com/v2/ for more information. Investment merits 1. Near term results likely to be better without once off items Eratat recognised a once off sales incentive in 4QFY11 of RMB51.7m and renovation subsidy RMB41.8m in 1HFY12. Without these […]