Former Gymnastic Prince Met With Brutal Competition Lining Shares Fell 2 Years In 80%

The road to internationalization is broken down.

Media exposure Lining Spanish Company bankruptcy

A few days ago, a number of Spanish mainstream media reported that

Last Friday, it announced bankruptcy reorganization, and its cooperation agreements with many Spanish clubs were cancelled.

Reported that Li Ning Co from 2001 began to take the road of internationalization, its first image shop is located in Santander, Spain, and in the following year's World Women Basketball Championship, sponsored the Spanish team.

Since then, Li Ning Co has sponsored many sports teams such as basketball in Spain.

Lining took Spain as a stronghold to take the road of internationalization. He used to be a card that Lining's predecessor, CEO Zhang Zhiyong, liked to talk about.

Some media said that before Lining's vigorous 2005, Li Ning Co CEO Mr. Zhang Zhiyong used the "Wei Wei Zhao Zhao" in the thirty-six plan of Sun Tzu to compare this international brand in his hands.

In 2006, Lining signed a contract with NBA's famous stars Damon Jones and O'neal. Lining, who was sponsored by the Spanish basketball team, won the championship of the men's Basketball World Championships. "Lining brought luck to Spain" when the TV broadcasts described Lining's successful sponsorship.

B official clarification

It is said that the bankrupt is the authorized business, not the subsidiary company.

But China

According to related rumours, Lining officially made 4 clarifications in July 9th. First, the bankrupt company was not a subsidiary of Lining, but was authorized by Lining in Spain. Second, the authorized company signed some sponsorship by itself. After bankruptcy, Lining will solve the remaining problems related to sponsorship. Third, the sponsorship agreement with the Spanish Basketball Association has been signed by Lining group directly, which is totally different from that mentioned at second points. The implementation of the agreement will not be affected; fourth, the Lining group will focus on developing the core Chinese market, and the International Association will explore risk control.

At the same time, the scale of business in the Spanish market is very small.

Despite the modest negative impact of official quick response, Li Ning Co's performance decline and executives' personnel changes last year are still attracting attention from all walks of life.

The latter took the Li Ning Co announcement in July 5th as an example. Zhang Zhiyong, who served the group for 20 years, resigned as chief executive officer. Lining, the founder and group executive chairman, returned to the front desk to take charge of the company's external affairs and relations before hiring a new chief executive officer.

In addition, Jin Zhenjun, the partner of TPG, a private equity fund, serves as the executive vice president and is responsible for the internal affairs and operation of the group.

What is more concerned about the world is the Li Ning Co's defeat in China's main battlefield last year: the net profit in 2011 was 386 million yuan, and the five largest local sporting goods vendors were less than half of PEAK's net profit at the bottom of the list, which was only 25 million lower than those with a net profit of over 25 million yuan, and An Tachao's net profit was over 1 billion 700 million yuan.

In 2012, Li Ning Co was still having a hard time. In June, the company said that the total number of orders in the fourth quarter decreased by double digits.

Product orders fell by 20% over the same period last year.

It is expected that sales revenue will grow negatively in 2012, and net profits will also decline sharply.

C reporter visits

Nanjing counter sales as usual

Hong Kong shares fell by about 8 over the past two years.

Yesterday, the reporter came to the Lining counter in the central shopping mall. It was found that in 10 minutes or so, 9 people patronized the shop, of which 2 and 3 customers bought goods. Most of them bought clothes, and a few of them were trying on board shoes.

Among the customers, the proportion of students is relatively large, and the consumption per unit is 100-200 yuan.

When reporters asked whether customers knew Lining's bankruptcy in Spanish partners, they generally shook their heads.

Most of the respondents were accredited with Lining because of the benefits, quality and support for domestic production.

In addition, sales staff also said they did not know the news and said that sales were good this month and last month.

However, when a reporter inquired about Lining, a listed company of Hong Kong stock (02331), he found that the situation was not very optimistic.

Recently, the stock price fell and the closing price was only 4.45 yesterday, down 11% from the closing price of 5.03 a week ago.

This is 59% more than the 10.90 highest price in 52 weeks, which is about 80% lower than the 25.90 closing price in July 9, 2010 2 years ago.

To this end, investors can not help asking, what has happened to the "Prince of gymnastics" in the past? It has been reported that the problem is that the brand positioning is not clear.

For example, Nike and Adidas are ready to launch mid-range price products in China.

In contrast, Lining's position is awkward, hovering between the international high-end and domestic low-end brands, and the strategic positioning has been vacillating for a long time.

Deep exploration of D

General inventory of sporting goods is serious.

Lining's latest rectification starts with clearing stock.

However, the more general problem may be the serious backlog of stocks in the whole industry.

This is not just the Lining family's problem.

For sports goods companies in the Chinese market, the crisis of the whole industry has become a more brutal sport event than the Olympic Games.

According to "Chinese and foreign management", there is widespread overproduction in the industry, and only about 60000000000 yuan for sports casual wear and formal clothing last year.

According to public information, in addition to Anta, the average turnover days of local well-known sporting goods companies in 2011 increased significantly over the same period last year.

Take the annual report of Lining as an example: in 2011, the average turnover days of the company were 73 days, 21 days higher than the 52 days of last year, and the stock of Li Ning Co was 1 billion 133 million yuan, up 40.64% from 806 million yuan in 2010.

Slightly better than Lining's PEAK sports, also issued a profit warning earlier, said the first half of 2012 and year-on-year net profit year-on-year will be significantly reduced, due to inventory adjustment and weak economic conditions.

Nike's fourth quarter earnings report released in June 29th also showed a downward trend in China's sales revenue.

In July 10th, Li Ning Co announced the latest rectification plan, including planning for the next 2-4 years.

The plan is implemented in three stages.

The main focus of the first stage of the measure is to clean up the channel stock and have already started.

Some media quoted the Hongkong Ta Kung Pao reported that Jin Zhenjun, the new executive vice president, emphasized that inventory will return to normal level in the next 6 to 12 months.

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E investment value

Lining's target price was adjusted to 2.7 yuan -7.5 yuan.

A share textile and garment industry is not optimistic as a whole.

In the future, can "gymnastic Prince" be able to fight brilliantly? Reporters have found that different institutions have different views on Lining's future.

The most promising one is Deutsche Bank, whose research report says that in the next 6 to 12 months, Lining still has to face the challenge of high inventory, and the Group intends to invest more in brand building and retail promotion. It is expected that Lining will not be able to regain its earnings growth in the short term, so it will maintain a "holding" rating with a target price of 7.5 yuan.

Merrill Lynch Merrill lashed cold water and sharply lowered Lining's profit forecast. The target price was reduced from 4.7 yuan to 4.1 yuan, and the rating of "losing big city" was maintained.

Barclay was the most pessimistic, cutting the target price of Lining 60%, from 6.5 yuan to 2.7 yuan, and the investment rating from "big city" to "reduction".

Zhejiang Merchants Securities Nanjing danguan Road Business Department analyst said, "sporting goods listed companies are mostly in Hong Kong stocks, but A shares of textile and apparel is also not optimistic."

He believes that under the downward trend of the economy, the textile and garment industry with high technology and high dependence on exports is the first to be affected.

According to Founder Securities, external demand remained relatively low in June.

In May, clothing sales in Hongkong increased by only 0.7%. In the first half, sales of Indonesian textiles dropped by 20-30%; Brazil tightens restrictions on the import of Chinese footwear.

Foreign demand is sluggish and domestic demand is also weak. The Ministry of industry and Commerce said the textile industry is still in a difficult position in the second half of the year.

The monthly report of textile and apparel industry of Bohai securities in July 11th showed that as of June, the industrial data showed that the textile and garment industry was relatively stable, and the overall export situation was not good, but the export situation of the largest export area improved slightly, and the consumption data did not improve, and the profitability of the textile industry continued to decline.

Short term no good trend; because sales data in the first half of the year is not ideal, terminal unsalable, inventory backlog will inevitably affect the second half of the order, thereby affecting the second half and next year's growth rate.

Therefore, we should maintain the "neutral" rating of the textile and garment industry as a whole.