Seven Wolves: Store Expansion Slowdown Fund All Over The Line

Recently, China Daily reported that the terminal consumption was generally weak in the first half of the year, and the net profit of the company increased by 40.61% in the first half of the year, but the net profit decreased by 59.1% in the quarter.

According to the China Daily, eight of the top ten tradable shareholders of the seven wolves were from institutional investors, and they increased their holdings in the two quarter.

Expansion of company stores

In view of the sharp decline in net profit margin, seven wolves said in the China Daily that the main reason is the reporting period.

The industry showed weakness in terminal consumption, slow growth in same store and increased pressure on channel inventory.

Coupled with the two quarter climate anomalies, heavy rain and the 5 and June temperatures were significantly lower than in previous years, affecting terminal sales.

According to the reporter, since the first half of this year, there are few shops for the seven wolves, and the number of terminal outlets has increased by only 5 to 3981, of which 4 have been directly increased to 534, with a net increase of 1 to 3447.

A research report released by Bohai securities revealed that the data of seven wolf sampling shops showed that the overall growth rate of the same store was slowing down, which means that if the inventory backlog of terminals could not be digested in time, the sales intention of the future would drop.

"In the face of economic downturn,

The enterprises with moderate and low end products tend to be vulnerable to the limited consumption power of consumer groups.

Clothing consumption itself is seasonal. In the first quarter, because the Spring Festival is the peak season of consumption, the increase in sales volume is also an important factor in the difference between the two quarterly results.

Han Changshui, senior investment consultant of Fuzhou Merchants Department of China Merchants Securities, said.

Two quarter fund increase across the board

With the announcement of the seven wolves, the institutional investment strategy also emerges.

As of the two quarter, institutions still occupy eight seats in the top ten largest shareholders of the seven wolf pack.

Among them, the ninth largest seat for the Bank of Schroder blue chip stock fund, bought 4 million 747 thousand and 500 of the shares in seven wolves.

In addition, seven other institutional investors increased their seven wolves in the two quarter.

Among them, Yi Fangda's value growth hybrid fund increased by 6 million 330 thousand shares and remained the third largest tradable shareholder of the company; Yi Fangda's active growth fund added 1 million 920 thousand shares to become the fifth largest tradable share shareholder; GF preferred hybrid funds (increased 3 million 834 thousand and 300 shares), GF large scale growth hybrid fund (2 million 416 thousand and 600 shares) and Guang Fa rich open-end fund (2 million 733 thousand and 300 shares) were ranked fourth, sixth and seventh of tradable shareholders.

In addition, Jin Xin securities investment fund and TEDA Hongli market capitalization preferred stock fund ranked eighth and tenth of tradable shareholders, increasing 680 thousand shares and 1 million 298 thousand and 300 shares respectively.

The the Great Wall securities research report said that

Large capacity, seven wolves in the leading position of the industry is stable, it is expected that in the next 3 years, the profit compound growth will exceed 30%.

"There are not many stocks to choose from the clothing sector, similar to the seven wolves, the card slave Road, the search for high-end men's clothing brand and high-end leisure clothing, because the consumer groups are relatively fixed, the loyalty is relatively high, the impact of the economic recession is relatively small, and the long-term development prospects are also better."

Han Changshui said.