YOUNGOR: Involved In High-End Clothing &Nbsp; Not Taken This Year.

As China's largest menswear brand, YOUNGOR (600177) has long been a leading industry, but in the eyes of market participants, the company is not a single garment enterprise. According to its third quarterly report, the real estate business has provided 37.5% of its revenue, and also has deep participation in equity investment.

In the real estate industry is becoming increasingly cold, the economic environment is also chill gradually, the company

The main capital flows into the stock market (12/09).

Sudden surge is likely to come to the gospel of investors: locked up stocks are saved!

Clothing is always the main business.

YOUNGOR is located in Yin County Road, Fenghua, Ningbo. The building complex consisting of administrative buildings, exhibition halls and VIP buildings is made of marble. It has been magnificent for more than 10 years.

Accompanied by the staff of YOUNGOR securities department, the reporter visited some of the production workshops of the company.

In the big shirt production workshop, thousands of machines worked together in the roar of machines, and the scene was shocked.

The production of shirts has been decomposed into hundreds of processes and production lines.

The cloth is cut into different parts according to different parts, and then sent to each assembly line. Many processes are completed on the mechanical lifting arm which can be automatically pmitted. After the worker completes a process, the hanger is sent to the next step automatically.

After the whole splicing is finished, the next step is ironing and testing.

In the Western clothes shop, it is obvious that the process has increased a lot, according to Feng Jun.

In the workshop, there is a rest room where workers can rest and drink. Workers can walk, drink, and make phone calls freely.

According to Feng Jun, deputy manager of the securities department, the working time is arranged on a daily basis. The wages of the workers are calculated by basic wage plus piecework wage, and there are more than 2000 yuan per month.

She also revealed that recruiting workers every year is not difficult.

In the conference room that can look down on the Fenghua River, the reporters have made an understanding of the company's management and so on.

When asked about the company's clothing, real estate and investment business, YOUNGOR propaganda manager Yu Cheng said: "we have always been the clothing industry as the main industry, there is no problem of sorting, we want to make YOUNGOR a hundred years of clothing brand, an international brand.

Over the years, we have invested a lot in the clothing industry. It is just because of industry reasons that there is no explosive growth like real estate and investment, so it is not so attractive.

The channel construction of garment industry is very important, according to Liu Xinyu, the company's secretaries.

Since the self-service store is located in a commercial area, there are many requirements for operating area and decoration design, so the cost is much higher than that of franchising.

Even so, the company focuses on the development of proprietary stores.

Self run stores can directly and quickly understand the preferences of consumers and the selling of products. They can adjust production and sales in the quickest time, while self run stores can reduce the turnover time of goods and capital. Combined with the above factors, the "flat effect" (profit / store area) of self operated stores is much higher than that of franchising.

The global financial crisis has brought difficulties to the operation of many enterprises, but also provided opportunities for YOUNGOR's internal integration. In 2009, the company integrated its many branches into two companies, namely clothing holding and real estate holding company, which are more conducive to the long-term development of the two industries and enhance their ability to resist risks.

In November 7th, the company took the price of HK $886 million and took the new Ma international as the main body to recover the 14 companies of Ningbo YOUNGOR shirts Co., Ltd. from the relevant party Zou's International Limited.

Enter the high-end and fashion market

In order to enhance the radiant power of the brand, YOUNGOR has made great changes in brand design.

In addition to the original official men's formal dress, new brands focusing on high-end, fashion and European and American styles are added.

The flagship young fashion GY brand is very impressive. This series is obviously different from the traditional impression of YOUNGOR, which adds a lot of young elements. It has many colors, metal ornaments, or a mixture of hip-hop avant-garde, or a light and simple device.

Feng Jun said that the brand positioning will be younger than that of YOUNGOR. For the 25-35 year old crowd, the Japanese W-GAME design team will complete the version design.

The high-end line of the company is realized by "MAYOR". "MAYOR", which is called "mayor", is a high-end brand oriented to administrative officials.

Mainly to provide customized services to customers, there are a small number of garment production, the way to operate the club, professional tailors to measure the customer's body parameters, also accept customers to the exclusive store customized to meet the individual needs, can embroider special embroidery for the guests, a set of clothing from custom-made to clothing for about 20 days.

In addition, the company has obtained the Greater China sales agent of American brand Hart Schaffner Marx (Hart Marx).

Feng Jun introduced that the brand was produced by YOUNGOR's foundry, and most of its designs were also completed by YOUNGOR.

And this brand is Obama's favorite. During the election period, Obama is wearing Hart Max around the lecture. After his election, the 120 year old clothing brand is very popular in the United States.

There is also the British style brand "CEO".

In addition to the style of clothing and innovation in fabric, YOUNGOR and PLA jointly developed a series of hemp family. The "high count hemp double mercerized knitted natural multi-functional fabric" was included in the 2011 national key new product plan, and was supported by the Ministry of science and technology to fill the gap in China.

It is a mixture of hemp and spun silk or cotton. It is cool and breathable with hemp, but it eliminates the disadvantages of coarse and punctured spots of hemp fabrics, making the hemp fabric fine and soft.

The hemp living hall made of new pajamas, bathrobes, underwear and other clothing and household products is based on "HANP".

Because these new products are not too long to market and have yet to be sold in the country, they have been displayed and sold in the core flagship stores of key cities and provincial capitals, such as the flagship store of 5000 square meters in the Bund, Shanghai, and the flagship store of 1000 square meters in Beijing Dongdan.

In addition, there are also sales in some large shopping malls.

According to the plan, every brand will have independent stores in the future, especially the "MAYOR", which has been placed in high hopes. In 2010, brand stores have been opened in some key cities.

No land, no new projects have been developed this year

The proportion of real estate business in YOUNGOR's earnings is not low. In the three quarterly report, it contributed 37.5% of the main business revenue and 18.42% of the profits, and the real estate business grew faster in recent years. From 2006 to 2010, the average annual growth rate was 30%. In today's real estate situation as a whole, the YOUNGOR's real estate business has entered the defensive period.

According to Yu Cheng

Regarding the risk of real estate regulation, Cheng said frankly, "YOUNGOR entered the real estate business in 1992, during which several real estate controls were encountered. We should have rich experience in real estate regulation."

YOUNGOR's real estate business is mainly concentrated in the Yangtze River Delta region. Now it has been developed in different places such as Suzhou, Hangzhou, Shaoxing and Shanghai. It is mainly the development of commercial housing, supplemented by the diversified development of hotel management and property management.

Commercial housing in the Ningbo region positioning high-end, the first half of the company Ningbo market share first.

For the real estate business, Yu Cheng said: "in general, in this big market environment, the sale revenue this year is definitely less than that of last year.

This sector needs structural adjustment. We began to enter the real estate industry in 1992. After several waves of adjustment, the risk resistance capability is very strong.

The real estate industry is the question of who can survive. Now is the stage of cash being king. Our strength is enough to make us secure the period of regulation and control, and our real estate business has been very steady.

The real estate industry has been growing rapidly for so many years. We have been very sober about this.

In addition, according to Feng Jun, the financing cost of the company is very low.

Another business of the company is investment, which is mainly provided by Kay stone investment team of YOUNGOR. Kay stone investment is responsible for previous research and analysis, reporting to the board of directors, and finalized by the board of directors.

Kay stone investment is controlled by Chen Jiwu, the former deputy general manager of Wells Fargo fund. Besides offering investment advice to YOUNGOR, it also sells some financial products.

Investment business is mainly engaged in PE equity investment and private placement, mainly investing in finance, resources and leading enterprises.

In 1993, the company began to intervene in the field of equity investment. In 2007, YOUNGOR group set up a professional investment company Kai Shi investment to invest in equity and financial enterprises, resource-based enterprises and industry leading enterprises that have been listed and listed.

The investment income is divided into Kay stone 15% and company 85%.

According to our financial consultancy agreement with Kai Shi, "if there is a loss, YOUNGOR will not have to pay the consulting fees, and then pay the profits that will be realized after making up the losses."

How does YOUNGOR's manager Liu Xinyu and Minister of propaganda work on the balanced development of chengtan company in the main sideline industry?

YOUNGOR 80% sales come from proprietary stores, far more than peers.

Chinese enterprises love cross-border, especially real estate, which is almost universal phenomenon, such as Haier, Lenovo and other star enterprises in recent years have repeatedly spread news about real estate.

Similarly, YOUNGOR, with its leading men's wear aura, is also deeply involved in real estate and investment, but YOUNGOR, who is involved in three industries at the same time, has a good performance in these three industries.

One step ahead in store construction

The store construction of textile and clothing industry is closely related to the company's performance. 80% of YOUNGOR's sales share comes from the self operated network. Only 10% of the sales share is realized by 422 franchise stores, and the other 10% relies on enterprise group buying.

Liu Xinyu thinks that the benefits of large-scale self employment are very obvious. In the fast changing market, through the sales system of self operated stores, the parent company can quickly know where the goods are out of stock, which needs replenishment, which products are salable and which products are unsalable, which can quickly adjust the birth and sale.

Because it is their own stores, it is very convenient to adjust the replenishment of goods, if it is the pfer of goods between the franchisees is very difficult to operate.

In terms of logistics, the high share of self owned stores is also a great advantage. According to Liu Xinyu, YOUNGOR has more than 130 branches in the country responsible for logistics distribution and operation. If there are many self owned stores, it will not be easy to have large areas of goods being loaded up, and the capital turnover time is long.

If the franchisee is a franchisee, a warehouse is a franchised store. Although the funds are quick, if the franchisee is not well managed, it will cause a backlog, and eventually the whole sales terminal will be injured.

According to public information, as of September 30, 2011, the company has 2194 stores, including 531 self owned stores, 1242 special stores, 421 franchises, and a small proportion of sales. Only 10% of the products are sold through franchised stores.

Liu Xinyu said: "only one of us has such a high proportion of self owned shops in the same industry. Other clothing enterprises are also developing their own proprietary stores. Most of them are mus banks. The sales volume of their own stores can reach 50% of the total sales.

Although they are actively developing their own businesses, there may be some difficulties. The cost of building self operated stores is too high now. Since we began to purchase our proprietary stores in all parts of the country since 1998, there are now 185 self operated shops with property rights. Although there is no specific calculation, the appreciation space is very large. We also made statistics. There were 100 stores purchased before 2003, and 60 were purchased before 2008, only more than 20 were purchased later.

What is interesting is that almost all the 100 purchased in 2003 and 60 purchased in 2008, and more than 20 purchased in 2009 and 2010 are almost 100 billion yuan, but the number and size of the stores are totally different.

Some time ago, our Binjiang building demolition compensation, this is the assets we got in 2003, the book assets only 12 million 80 thousand yuan, last year only demolition compensation has more than 200 million yuan.

We are not saying that they value their appreciation, but to show that the cost of renting a shop is very high. "

At the same time, Liu Xinyu emphasized that the expansion of stores is not a single way to sink the channels, but also in cities and counties at the county level, which will affect the brand image rather than performance, but if conditions are ripe, they must intervene.

"Therefore, we are two leg walking, brand promotion and market development equal emphasis on development thinking, is the market development and channel sink two equal weight."

Liu Xinyu said.

YOUNGOR has nine major marketing companies throughout the country.

The number of stores reached more than 2000.

In the production Park of YOUNGOR, more than a dozen large production shops were lined up. The time when the reporters came to the workshop was the meal time, and the entire factory area was crowded with people.

Behind them is a huge product exhibition hall, facing these, Yu Cheng said: "clothing has always been our main business, our business is started by clothing.

Over the years, we have been making clothing and later doing retail terminals. We have been working hard in the field of clothing industry, and have invested a lot. Our number of stores has reached more than 2000. Now there are five different brands. We have never wavered in our goal of building international brands and brands.

From the perspective of the whole industry, Yu explains why the clothing industry has no other business so colorful. "The brand creation process of the clothing industry is a gradual process. It needs time to nurture. Unlike investment, this is a big step forward." in fact, we have done a lot of basic work in these years, but these efforts are only a small part of the whole brand creation process.

It is not easy to create a functional product from the upstream to the retail terminal. Rome was not built in a day. "

How to control real estate and investment risks

Because of the weakness of the real estate industry, the market is naturally worried about YOUNGOR's real estate. What's the future performance and how to spend the current predicament? Cheng said that this year's environment is so great. Although YOUNGOR's economic conference at the end of the year has not yet been opened, there is no relevant data at present, but it is definitely not the same as last year. But she also said that YOUNGOR's real estate business is stronger than the general enterprises, and the risk resisting ability is relatively strong. YOUNGOR's real estate business is relatively large in Ningbo, accounting for more than 20% of the total market share, mainly in the residential business, focusing on high-end business.

But she also told reporters that the economic crisis also had an unexpected side. In 2008, YOUNGOR seized the opportunity of the economic crisis to integrate the clothing sector and the real estate sector.

There are many subsidiaries under the original clothing sector, which make use of the operational difficulties caused by the economic crisis and reduce the resistance to integration so that these branches are put into the holding companies and achieve unified management.

Property companies also have the same situation, in Suzhou, Hangzhou and other places have branches, and later realized the heavy resources.

YOUNGOR's investment is mainly achieved through its holdings of Kay stone investment, and the investment projects are mainly aimed at increasing equity holdings with private placements.

The investment process is like this. YOUNGOR commissioned Kay stone investment to conduct early market analysis, project research, identify investment objectives, provide suggestions for the board of directors, report a project, and pass a series of decisions of the board of final examination, then decide whether the decision is worth investing or investing.

Institutions: keep white horse true, overall valuation is low.

As a listed company from the traditional main industry to diversified development, YOUNGOR (600177) has been concerned by many organizations in the context of real estate and equity investment.

Market participants generally believe that in recent years, the company has many targeted adjustments in the clothing business, and the impact of real estate regulation on it may not be as large as expected.

Growth of garment industry

Shenyang Wanguo analyst Wang Liping optimistic about the company's clothing plate capital operation results.

He said that the net assets of YOUNGOR's brand clothing sector's 14 shareholding subsidiaries were 25% yuan, about 750 million yuan.

In 2010, the net profit of the 14 companies was about 927 million yuan, and the net profit corresponding to 25% of the shares was about 232 million yuan.

The total purchase price is about 750 million yuan, so the company's acquisition of these minority shareholders' rights corresponds to the PE level of 2010 only 3.2 times, which is much lower than that of the textile and garment enterprises in 2010.

After the completion of the acquisition, YOUNGOR gained 100% rights and interests of the 14 garment subsidiaries. At the same time, as the wholly owned subsidiary of YOUNGOR, the new Malaysia clothing international (registered Hongkong) completed the acquisition, it is expected that the 14 preferential tax policies of the subsidiary will remain.

According to the static calculation, he expects the acquisition of the thickening company EPS is about 0.1 yuan.

In Guotai Junan's research report jointly made by the real estate industry and textile and garment industry analysts, Zhang Rong, an analyst of Guotai Junan textile and garment industry, said that after the completion of the aforementioned acquisition, the company gradually reduced the upstream color and fabric business of textile and clothing, and stripped the OEM subsidiary with relatively low gross profit margin, and made full efforts to create brand clothing business.

As of the three quarter of this year, YOUNGOR has 2194 terminals, including 531 self owned stores, 1242 shopping malls, and 421 franchises.

Zhang Ang believes that from the change of channel in the first three quarters of this year, 25 new stores and 84 new shopping centres were added to the franchise. The number of franchises dropped by 60.

Future Ltd is expected to add 100-200 new businesses every year, which is still a relatively stable growth, while the development of self and shopping counters is the focus.

According to the information he knows, the key shopping malls that the company is in touch with are big business shares (600694) and Zhong Bai group (000759). In December, the former will also hold a special investment promotion meeting for YOUNGOR, and the company will increase its layout to the north.

In addition, the location in the mall is also striving to change from central island to the side hall, and strive to increase single store income.

In self owned stores, the company's strategy is to gradually increase the proportion of large stores. The area of newly built self-stores is more than 300 square meters or even more than 800 square meters. The average area of the self operated stores has increased from 100 square meters to 250 square meters.

In the first half of 2011, the number of channels increased by 16, and the sales revenue of domestic brands increased by 26%, of which the price increased by 10%, increasing by 15%~16%.

Zhang ang expects to rely on the endogenous growth of single stores as the biggest aspect of the channel.

The multi brand strategy has opened the imagination space for the future growth of the company, the quality is excellent, and the future growth is clear.

Real estate regulation brings uncertainty

With the development of real estate regulation, the concern and caution of YOUNGOR's related businesses can also be expected.

However, in the case of slow investment, agencies are of the view that the problem of sales based on current projects may not be large.

Guo Haiyan, an analyst at CICC, said that the two quarter of the three quarter of the city, the city hall and the incense Bay Lake, were included in the recognition of the revenue and the fourth quarter related performance.

The company has about 2 million 700 thousand square meters of land reserve, and its value of real estate assets can be estimated at 13 billion 340 million yuan.

Guotai Junan real estate analyst Li Pinke believes that the company's main real estate projects are concentrated in the Yangtze River Delta, and Ningbo is one of the most powerful city operators.

The company's project in Ningbo is mainly high-end. In 1992, the company developed the Rhine Castle villa project, took the lead in the development of luxury houses. In 2004, the development of the sea view garden, the first level flat house, the sea view garden and the money Lake Beverly as Ningbo's top luxury mansion benchmark, many years of experience in building luxury houses has created the company's luxury brand and accumulated customer resources.

He also mentioned in particular that YOUNGOR has bought a large number of self owned stores in the central city on marketing channels, and the 185 shops are self-contained properties. The revaluation value of these shops is 2 billion 800 million yuan, or 1.26 yuan per share.

Guo Jin securities analyst Zhang Bin noticed that in the first half of the year, the company achieved an investment income of 762 million yuan by disposing of the available financial assets, 40.9% of last year's total, and the net profit of investment business was 400 million yuan, an increase of 680% over the same period last year.

At the end of the reporting period, the sale of financial assets was 12 billion 110 million yuan and the book surplus was 3 billion 920 million yuan. This part of the assets could increase the company's performance elasticity, and the reserve earnings could contribute 1.32 yuan per share.

The company is more robust in taking the place, and did not add new projects in the first half of the year, which is also in line with the current regulatory situation.

Zhang Ang also believes that YOUNGOR's performance in the field of financial equity investment has attracted much attention. It has participated in a large number of equity investments in the form of original stock or fixed growth. Even in the current state of extremely depressed stock market, the market value of holding shares is still around 12 billion yuan, and there are still high returns.

The uncertainty of the company is mainly concentrated on the following aspects: Zhang Bin believes that the company's semi annual report shows that the balance of funds is 2 billion 920 million yuan, which is 20% of short-term loans and non current liabilities due to maturity within a year, and the pressure of short-term funds is larger.

Evaluation opinion

1.

Although YOUNGOR is mainly involved in the three industries of clothing, real estate and investment, it has always been committed to the development path of clothing.

The brand effect of clothing in the company is obvious, and 80% revenue from self operated mode provides a broader development space for the company.

In recent years, the company has made great changes in brand design. Besides, it has added new brands that focus on Yu Gaoduan, fashion and European and American styles.

2.

Since 1992, the company has entered the real estate industry. The real estate projects are mainly the development of commercial housing, supplemented by the diversified development of hotel management and property management.

In the first half of this year, the company occupies the first place in the residential market in Ningbo.

The company has been in the real estate industry for nearly 20 years, and has experienced many real estate regulation. Therefore, there must be some experience in regulation and control. This year, the company has neither taken nor developed new projects, and has adopted the idea of "cash as king".

Therefore, there is no need to worry too much about the impact of real estate regulation.

To sum up, investors can pay more attention to the white horse stocks generally accepted by YOUNGOR such an institution.