Apparel Industry Stock Market: Analysis Of YOUNGOR Equity Investment

In April 21st,

For the misreading of "doing nothing", Li Rucheng smiled and said, "make use of the wealth accumulated by industry to make money in real estate development and equity investment, and then use it to share dividends for shareholders. Why not?"

In the case of Limited clothing growth, real estate development and equity investment have revealed YOUNGOR's ability to make investment.

In fact, YOUNGOR clothing business belongs to the consumer industry, creating fast cash flow; investment and real estate business consumes cash flow and creates high profits.

The cash flow matching among different business departments can achieve maximum benefit.

The 2010 annual report shows that during the reporting period, the company actively participates in private placement and PE investment. The total realized investment income is as high as 2 billion 60 million yuan, especially the disposal of the sale of financial assets to achieve 1 billion 865 million yuan, accounting for a considerable proportion of profits.

In 2010, the company participated in the private placement of Shanghai automobile (600104), ZOOMLION (000157), China National Aviation (601111), Xugong machinery (000425) and other 10 companies.

Preliminary calculation shows that the total investment cost of the company in 2010 is about 4 billion 400 million yuan, of which the single investment of more than 1 billion yuan is Shanghai automobile and Xugong machinery, which are all around 1 billion 200 million yuan.

These companies had a market capitalization of about 6 billion 300 million yuan at the end of the year, and the book investment income was 43%.

In addition, the company is actively involved in PE investment.

In 2010, YOUNGOR invested a total of nearly 170 million yuan to participate in the joint stock pfer of China UnionPay Business Co., Ltd. and the Xiangyang fishing port Limited by Share Ltd in Zhejiang.

As of the end of 2010, the company held 10 PE and other investment projects, with a total investment of 950 million yuan. Among them, Hainan rubber (601118) landed on the Shanghai Stock Exchange in January 7th this year. The company owns 20 million shares of the company, and the investment cost is 60 million 950 thousand yuan. According to the company's closing price, the market value is 263 million yuan.

At the same time, the company sold shares of 18 listed companies such as orient electric (600875), Bank of Communications (601328), Haitong Securities (600837), Bailian Group (600631), Shanghai nine hundred (600838), Shuanghui development (000895) and so on during the reporting period.

And why is YOUNGOR's investment so precise?

Li Rucheng said that a professional investment team is doing this.

Macroscopically looking at industries, such as medicine, machinery and other fast growing industries.

The specific stocks should be based on the long-term direction of the company and the background of shareholders.

It is mainly investment in state-owned enterprises, because state-owned enterprises do not need to cheat.

It is understood that since the establishment of a special investment company in 2006, YOUNGOR Investment Co., Ltd., in 2008, YOUNGOR group once again introduced a professional investment team to carry out equity investment business, invested 60%, set up Shanghai Kai Shi Cci Capital Ltd, and hired it as the company's asset investment advisory body.

Shanghai Kai Shi investment in 2010 is worthy of commendable selection and rhythm control.

According to the time schedule of YOUNGOR's 12 investment business, the company didn't take part in any private placement projects last 4~6 months, and 4~6 was the time of last year's big market falling.

Analysts pointed out that in this process, even after the issuance of private placement is lower than the market price of the issuance of shares, the possibility of being locked up is also very large, indicating that YOUNGOR investment team to the market trend is more accurate.

"YOUNGOR caught the investment and seized the real estate. I do not think it is wrong."

Li Rucheng told reporters that after all, the money earned is "real gold and silver", which can expand investment and acquire mergers.