Labor Shortage Caused Seven Quarter Wolf Management Fees Surged 60%

Although 34.41,0.00,0.00% (002029.SZ) increased revenue by 29% in the first quarter of this year, and net profit increased by 36%, the management cost of the company increased by 61.66% as compared with the same period last year.

Seven wolf said there were three main reasons for the increase of management fees: the increase of company staffing, the improvement of the salary level of the market, and the staff and workers. Pay The cost increased correspondingly. The company increased its R & D investment, and the research and development cost increased substantially compared with the same period last year. shares The option incentive plan raises a lot of stock option fees over the same period last year.

Metaphase Sale Expected fall

A quarterly report shows that the company achieved net profit of 126 million yuan in the first quarter of 2011, an increase of 36.03% over the same period and a profit of 0.45 yuan per share. Seven wolves said that during the reporting period, the company's operating income was 750 million yuan, an increase of 28.97% over the same period last year, mainly due to the increase in company orders and the increase in operating income. Meanwhile, due to the rapid response of the supply chain, the reporting period had a certain degree of advance delivery compared with the same period last year.

Seven wolf said that net profit increased over the same period last year, mainly due to the company's operating profit, while the parent company was identified as a high-tech enterprise, and the income tax rate dropped to 15%. The company expects net profit growth of 15%~30% in the 1-6 months of 2011 compared with the same period last year, compared with 124 million yuan in the same period last year.

Everbright Securities (14.52,0.00,0.00%) believes that the first quarter operating income of the seven wolves was 750 million yuan, up 28.97% over the same period. On the one hand, the increase in orders (basically caused by price growth and a small increase in volume) increased business revenue. On the other hand, the supply chain reaction rate was fast enough to advance delivery to a certain extent (benefiting from the accuracy rate of over 96% of the company's deliveries and adequate supplier's funds). Medium term sales revenue growth is expected to fall to the order level.

Data show that the total profits of the seven wolves before tax were 149 million yuan, an increase of 19.75% over the same period, and the net profit of shareholders belonging to the listed company was 126 million yuan, up 36.03% over the same period last year. Everbright Securities analysis shows that net profit growth of seven wolves exceeds revenue growth. On the one hand, it has benefited from an increase of 6921% in investment income over the past year. The company has invested part of its idle idle funds in bank financial products to obtain more investment income; on the other hand, it has benefited from its parent company being recognized as a high-tech enterprise, and the income tax rate has decreased from 25% to 15%.

Management fees increased by 61.66%

Everbright Securities Analysis of seven wolves quarterly report that the gross profit margin fell 0.24 percentage points to 40.63%, mainly because the price increase failed to fully cover the cost rise. The rate of sales expenses dropped by 0.04 percentage points to 10.22%, and the management fee rate rose 1.26 percentage points to 6.24%.

The quarterly report shows that the management cost of the company in 2011 was 1-3 yuan, which was 17 million 825 thousand and 800 yuan more than that of 28 million 913 thousand and 700 yuan in the same period last year. The announcement said that the increase in administrative expenses was mainly due to: (1) staffing increased, the level of remuneration raised, the wages and salaries of employees increased correspondingly; (2) the company increased its R & D investment, and research and development fees increased substantially compared with the same period last year; (3) the company implemented the stock option incentive plan, which raised more stock option fees than the same period last year.

Analysis of the industry, because this year labor shortage is more serious than in previous years, textile enterprises in labor costs bear a lot of pressure. It is understood that after the Spring Festival this year, in order to recruit enough workers, many enterprises have increased the wages of workers, even if there is still insufficient work.

Xiong Xiaokun, a light industry researcher at CIC, said that textile enterprises as a labor-intensive industry, the impact of labor costs can not be generalized. First of all, enterprises with low added value and volume win will seriously restrict the development of enterprises, but those who produce fine processed products, have high technology content and have a certain brand awareness will be relatively less affected.

At the same time, the seven wolves, as a result of the implementation of the stock option incentive plan, raised more stock option fees than the same period last year. The first quarter raised about 4000000 fees. It is estimated that 1000-2000 yuan will be raised in the whole year and 11 years will be completed.

Acting as an international luxury brand

Seven wolves announced recently that the company acquired 100% stake in Hangzhou Kenna clothing Limited company for 70 million yuan and has completed the registration procedures. This shows that the seven wolves began to enter the international luxury brand China market agent platform.

It is understood that the Hangzhou Kenna Clothing Co., Ltd. was founded in March 2008, mainly engaged in Italy famous brand Canali and Versace collection (Versace) agency business in mainland China. After nearly two years of acquisition and integration, its agency business has developed rapidly, and has become one of the two largest agents of Canali in China. At present, Hangzhou Kenna has set up 15 Canali brand outlets nationwide, and 4 Versace outlets. The main business areas are concentrated in Northeast and East China.

Xiong Xiaokun, a light industry researcher at CIC, said that the price of the seven wolves was due to a rise in the cost of labor in the first quarter due to the increase in human costs. Improving the added value of products became the main measure to get rid of the cost factors. Therefore, the seven wolves entered the luxury market in line with the requirements of the company's development and could effectively offset the trouble caused by the cost growth.