Company Profile Shenzhen Victor Onward Textile Industrial Co., Ltd. (000018: SZ) manufactures andmarkets printed and dyed woven fabrics. The company's fabric products include purecotton, pure linen, polyester-mixed cotton, linen cotton, and blended fabrics. Event Shenzhen Victor Onward Textile Industrial (the company) announced that it hasobtained regulatory approval from the CSRC on its assets restructuring plan. Accordingto the plan, Sino Great Wall International will seek a backdoor listing on the ShenzhenStock Exchange through Shenzhen Victor Onward Textile Industrial Commentn。 The approval of the asset restructuring plan suggests that Sino Great WallInternational is set to go public in the near term. Such procedures as completion ofshareholding rights transfer and change of stock name are expected to be completedshortly. As a pioneer in the implementation of the ‘One Belt One Road’ strategy, thecompany is expected to accelerate its pace of business development by leveragingfinancing tools on the capital market. The company’s efforts on overseas business expansion are paying off. As apioneer of the privately-owned constructing enterprises, the company has started todevelop overseas businesses since 2008. Currently, it holds over CNY 10 billion worthof overseas contracts at hand, approaching four times the total operating revenue for2014. In 2014, the value of new contracts totals CNY 7.28 billion and the number in15Q1 is CNY 6.73 billion. In addition, the company has been actively engaged in thedevelopment of ‘One Belt One Road’ projects. The large amount of orders at handprovides important guarantees for fast earnings growth in the next three years. Weexpect the company to register a 3-year CAGR of over 50%; The company’s stockprovides high margin of safety due to its fundamental soundness. More catalysts for stock price will be coming up. 1) We expect the company’searnings performance to hit new highs. As of March 2015, the company had heldover CNY 10 billion worth of overseas contracts at hand. We expect the company tocontinuously make breakthroughs in overseas business development. We see highlikelihood for the company earnings to break the annual target of CNY 346 million in2015. 2) The company is projected to carry out more M&As after becoming listed. 3)We expect the company to start refinancing in the near future to further fuel upoverseas business expansion. Earnings Forecast and Investment Recommendations: As a pioneer of theprivately-owned constructing enterprises, the company has in recent years graduallyshifted its strategic focus to overseas markets. It efforts on overseas businessexpansion are gradually paying off, which will serve as a key driver for the company’sfuture growth. After becoming listed, the company’s market reputation and capitalstrengths will be substantially improved. By leveraging various financing tools on thecapital market, the company is able to expand its businesses through both M&A andorganic growth at an accelerated pace. We made our EPS forecast for the companyat CNY 0.88 in 2015, CNY 1.40 in 2016 and CNY 1.84 in 2017, implying 35x 15E PE,22x 16E PE and 17x 17E PE. Reiterate BUY. Potential Risk: Fulfilment of overseas orders failed expectations; currency exchangelosses