Nearly 10 Enterprises Released 2011 Performance Bulletin: Cost Squeezing Profits Of Listed Companies

As of February 27th, there were about 10 textiles, clothing and footwear in succession.

According to their performance bulletin, the sales revenue of many enterprises in 2011 has increased to varying degrees, and the enterprises have developed further. However, the profit growth is not so optimistic at the same time, but the profit growth of many enterprises is lower than the increase of income, such as Busen shares and Thailand shares.

Specifically, the profit situation of brand clothing and home textile enterprises is relatively good (the profit growth rate of Luo Lai textile company is higher than that of revenue growth), while the profit situation of foreign trade processing enterprises is rather not optimistic.

The whole fact is that the cost of higher and higher costs -

The number of listed companies whose earnings growth has been released in 2011 is lower than the growth rate of revenue in many ways. On the one hand, the cost of marketing promotion has increased, and advertising investment has increased earlier than before. The increase of marketing expenses in various aspects has led to an increase in the cost rate, such as Busen shares.

But on the other hand, the external reasons are more common. While the sales revenue of each company grows, the rising cost of raw materials, labor costs and RMB exchange rate all test the operation of enterprises and compress the gross profit margin of the company, especially the profits of foreign trade processing enterprises.

Brand enterprises are also difficult to stay out of the influence. Despite the high cost, they have adopted a price raising strategy to ensure profit margins, but there is another phenomenon. The promotion of prices has inhibited some consumption intentions, which has led to a decline in sales in the fourth quarter of 2011.

One confirmation is that as the sales channel of mainstream clothing and footwear products, the sales decline of brand clothing and home textile products since the fourth quarter of last year is more evident in the department store terminal.

According to the bulletin of chain store retailer Tianhong mall in February 23rd, the company's 2011 quarter fourth quarter revenue was 3 billion 790 million yuan, an increase of 23.2% over the same period last year, while net profit was 134 million yuan, down 12.9% compared with 153 million yuan in the same period last year.

One of the main reasons for this phenomenon is related to the decline in sales of suppliers such as brand clothing and footwear.

Tang Jiarui, a researcher at Everbright Securities, pointed out that since the fourth quarter of 2011, the prices of winter clothing and shoes and hat products in department stores have been too fast, and the higher terminal sales prices have restrained consumers' consumption intention.

In fact, the rising rigidity of all kinds of costs has become an irreversible trend. In the future, the comprehensive ability of meticulous management, commodity research and development, and channel management and control will be tested more and more deeply.

714 million 600 thousand of revenue and increased advertising costs.

In February 22nd, Busen shares released the 2011 Annual Performance bulletin.

During the reporting period, Busen shares achieved operating income of 714 million 600 thousand yuan, operating profit of 67533264.71 yuan, total profit of 68303831.93 yuan, and net profit of 51098869.56 yuan, representing an increase of 32.98%, 21.44%, 22.59% and 21.21% compared with the same period in 2010, and the profit growth rate was lower than the income growth rate.

Guang Fa Securities researcher Lin Hai pointed out that the main reason for the growth of Busen's share profit is slower than that of the revenue growth. In 2011, the advertising investment increased. It is estimated that the advertising investment in 2011 (CCTV + Zhejiang satellite TV) will be between 2.0%-2.5%, which will bring a substantial increase in the sales cost rate.

In addition, the company's listed cocktail parties, roadshows and other expenses are included in the management costs, resulting in a higher management cost rate.

It is estimated that the cost rate will remain relatively stable from 2012 onward.

The main reason for its growth is that through strengthening the management of the terminal market, the sales performance has increased steadily, and the added value of the company's brand has further improved.

Market segmentation, brand product line is more and more abundant, product structure is further optimized.

At present, for the segmentation market, the company has formed grey, black, green and "Ming" series products.

The marketing network is further expanding and the gross profit margin is increasing.

GF Securities pointed out that the driving force of Busen's gross margin increase was mainly due to a slight increase in the total agency discount rate.

The company's original discount to the total generation is about 64% off. In 2011, according to the size of the dealer and the credit level, it was fine-tuning. It is expected to increase to the 3.7-3.9 discount interval. The discount rate of the total generation (43) to franchisees is about 4.5-4.6.

At present, the discount of terminal products is about 10 percent off, and VIP can enjoy 20 percent off discount.

The number of terminal outlets in 2011 is expected to be between 880-900.

At present, Nanjing Busen and Shenyang Busen have been set up, and Hangzhou has increased capital and Guiyang Busen. It is expected that the construction of direct outlets will accelerate in 2012, and the proportion of direct revenue will increase to 15% in the next 5-6 years.

A slight increase in the company's 2012-2013 years EPS to 0.68 yuan, 0.84 yuan, to maintain "hold" rating.

Roley home textiles:

Net profit exceed revenue growth, but the four quarter results decline.

February 25th Luo Lai home textile released 2011 Annual Performance bulletin.

During the reporting period, the company achieved operating income of 2 billion 382 million yuan, an increase of 30.99% over the same period last year, a total profit of 444 million 564 thousand and 100 yuan, an increase of 56.98% over the previous year, and a net profit of 444 million 564 thousand and 100 yuan attributable to shareholders of listed companies, an increase of 55.17% over last year.

The total assets were 2 billion 152 million 500 thousand yuan, an increase of 14.74% over the same period last year, and the net assets per share attributable to shareholders of listed companies were 11.76 yuan, an increase of 11.79% over the same period last year.

The main reason for the increase in sales revenue during the reporting period is that in 2011, the company continued to strengthen channel construction, increase R & D investment and expand new sales channels. The main reason for the increase in profit over sales was the further improvement of product reputation and popularity, and the gross profit margin increased.

But the company's fourth quarter performance slipped.

Guo Haiyan, a researcher at CICC, pointed out that the growth rate of single quarter revenue in the four quarter of 2011 was 11.2%, much lower than that of the 42.6% quarter of the first three quarters.

There are reasons for economic slowdown, late winter, high price hikes and high channel inventory. Some companies have already ensured that they can achieve the 2011 Annual Business Plan (revenue growth of 29.6%) and alleviate the pressure.

On the whole, brand home textile enterprises are growing well.

Guo Haiyan believes that in 2011, the gross profit margin will increase by more than 2 percentage points over the same period.

The advertising and publicity expenses of the company in 2011 were not large enough, and with the continuous expansion of the company's sales scale, business levers were improved, and the proportion of sales expenses to revenues would be slightly decreased.

In terms of inventory, there was an upward trend in channel inventory in the second half of 2011, but the company responded promptly, adjusting its strategy in the spring and summer order meeting in 2012 and not pressing goods to franchisees.

At present, the digestion of channel inventory is better, and the inventory pressure is not large.

In terms of channel expansion, there are nearly 2400 stores in Luo Lai, most of which will expand in two or three tier cities in the second tier cities, including more cost-effective brands.

In addition to continuing to strengthen its advantages in eastern China, there will also be a focus on improving some vulnerable areas.

The expansion of stores is still dominated by franchising, and a few key cities have increased direct sales.

It is estimated that the earnings per share of the company in the past 2012-2013 years are 3.51 yuan and 4.72 yuan respectively, and the corresponding 2011-2013 year price earnings ratio of the current stock price is 28.6 times, 21.7 times and 16.1 times respectively.

Home textile industry is still in the initial stage of brand development, leading enterprises still have room for rapid development and maintain "recommended" rating.

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Thailand shares:

Revenue increased by 10.64%, profit increased by 7.65%.

In February 16th, Thailand shares released the 2011 Annual Performance bulletin.

During the reporting period, the total revenue of Thailand shares reached 392 million yuan, operating profit 49 million 587 thousand and 900 yuan, total profit 53 million 989 thousand and 300 yuan, net profit attributable to shareholders of listed companies 40 million 54 thousand and 100 yuan, the company's total business revenue, operating profit, total profit and net profit increased 10.64%, 7.65%, 8.11% and 5.76% respectively over the same period last year.

It can be found that the company's operating profit, gross profit and net profit growth during the reporting period are all lower than the income growth rate. The reasons are manifold.

On the one hand, the growth of Thailand's share revenue is mainly reflected in the year-on-year growth in the sales price corresponding to the adjustment of the price of raw materials and the different complexity of the body.

On the other hand, at the same time of revenue growth, the purchasing price of the main raw materials of the company continued to rise, and the cost of labor continued to grow. This caused the company's gross margin to rise, which was limited by a slight decrease compared with the same period last year.

In third, 2011, the company continued to invest more in R & D, and its subsidiary Xiamen Rui bank raised itself to a higher cost at the end of the reporting period.

In addition, the relevant tax laws and regulations began to impose a tax on urban maintenance and construction tax and education fees and other factors for foreign-funded enterprises, resulting in a relatively slow increase in net profit in 2011.

Guang Fa Securities researcher Lin Hai pointed out that the main raw materials of soles include EVA plastic granules, rubber and other chemical products, which are closely related to the price of crude oil, and thus will be affected by the fluctuation of oil prices.

In 2011, crude oil prices remained high, plus labor costs rose, and the total gross profit margin of Tai Ya shares declined slightly in 2011.

At the same time, the growth of revenue is still limited by the progress of production capacity. In 2011, the growth of the main revenue mainly came from a slight increase in the price of the products, and the average price increase of the company's products was expected to be within 10%.

However, due to the company's annual output of 20 million pairs of sports shoes sole project and Anta Industrial Park's annual production of 20 million pairs of sports shoes, the production and commissioning time is delayed compared with the original plan, and the company still can not solve the problem of capacity bottlenecks. It is estimated that the two projects will not start to be put into operation until the end of 2012.

At present, the total production capacity of shoe sole is still around 31 million 500 thousand pairs, of which EVA, PH and PU are 2200, 600 and 3 million 500 thousand pairs respectively.

The company's capacity utilization is above 90%.

Under the constraint of capacity bottlenecks, the company's 2012-2013 year performance is downgraded. It is estimated that 2011-2013 of EPS will be 0.45 yuan, 0.52 yuan and 0.86 yuan, respectively, and the rating will be pferred to "holding".

Luen Fat shares:

Increase in self production ratio and improvement of profitability

In February 22nd, Luen Fat issued 2011 Annual Performance bulletin.

During the reporting period, with the majority of the investment projects put into operation, the proportion of the joint venture shares increased and the internal management strengthened. The operating income was 2 billion 750 million yuan, an increase of 23.4% over the same period last year, and the operating profit was 396 million 500 thousand yuan, an increase of 39.96% over the same period last year. The total profit was 410 million 580 thousand yuan, an increase of 39.26% over the same period last year, and the net profit attributable to shareholders of the listed company was 297 million 290 thousand yuan, up 45.16% over the same period last year.

At the end of the reporting period, the total assets of the company amounted to 2 billion 661 million 470 thousand yuan, an increase of 5.28% over the end of 2010; the owner's equity attributable to shareholders of listed companies was 2 billion 88 million 250 thousand yuan, an increase of 12.53% over the end of 2010; the weighted average return on assets was 15.03%, up 3.99 percentage points over the same period last year; the net assets per share attributable to shareholders of listed companies were 9.68 yuan, which was reduced by 43.72% at the end of 2010 years.

In April 2010, it was listed in Shenzhen Stock Exchange. It is a large textile group integrating spinning, dyeing, weaving, finishing and clothing. Its products are three series: yarn, yarn dyed fabric and shirt.

The company has an annual output of 11000 tons of dyed fabric, 60 million meters of dyed cloth, 60 million meters of finishing cloth and 5 million shirts. It has a large influence in the domestic and overseas dyed weaving industry, and its products are sold to more than 20 provinces and cities throughout the country, and exported to 36 countries and regions such as Japan, the United States, Britain and Italy.

The "double money" yarn dyed fabric has been identified as "Jiangsu famous brand" product and "export exemption" product.

Its color looms and shirts are mainly sold abroad. In 2009, the proportion of the external sales of the color looms and the outer sales of the shirts was 73.49%, and the outer sales of the shirts were 94.71%.

Over the past two years, with the expansion of shirt production, the company began to pform and accelerate the establishment of the sales network of shirts in the domestic market. At present, there are two modes of self-employed and e-business B2C.

Its own brand "JAMESKING" has a certain influence in the market, especially in the online shopping market, and has opened more than 200 stores in Guangdong, Shenzhen and Shanghai.

The company said that the main reason for the 2011 profit growth was the increase in self production ratio and the improvement of profitability.

The main reason for the decrease in net assets per share and the attribution to shareholders of listed companies is that the company implemented the equity allocation scheme in May 31, 2011, based on the original total share capital of 107900000 shares and the capital surplus to 10 shares per 10 shares of all shareholders.

Kim Feida:

Revenue decreased by 0.36% and profits decreased by 33.66%.

In 2011, the company achieved a profit of 416 million yuan, a year-on-year decrease of 0.36%, a profit of 8 million 516 thousand and 600 yuan, a decrease of 33.66% compared with the same period last year, and a net profit of 10 million 627 thousand and 600 yuan attributable to shareholders of listed companies, an increase of 1.44% over the same period last year.

In December 2011, Kim Feida received a special subsidy of 1 million 240 thousand yuan, so that the total profit of the company decreased by less than the decline in operating profit.

At the same time, the parent company Jiangsu Jin Feida garment Limited by Share Ltd and its holding subsidiary Nantong Nantong feying Garment Co., Ltd., owing to the loss of operating income tax, has substantially reduced the income tax expense.

Jiangsu Jin Fei Da was listed in Shenzhen Stock Exchange in May 2008. It mainly engaged in ODM and OBM business of women's garments in middle and high class. Nearly 100% of its products were sold to the US market.

The company has established long-term cooperation with Jones Apparel Inc. (world top five hundred) and Itemeyes Inc. (American listed companies), providing ODM products for more than 40 well-known American fashion brands such as LARRY LEVINE, ABS and CATO.

The company said that the cost and cost of production increased in 2011 compared with the previous year, due to the increase of raw material procurement costs, labor costs and RMB appreciation.

For foreign trade processing enterprises, the price of clothing products in foreign markets is relatively stable, resulting in the cost and cost increments can not be fully digested, thereby reducing the company's operating profit over the same period last year.