Semir Abandons Buying GXG Or Sees A Long Term Due To High Price And Short Term Profits.

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< p > the day before yesterday, < a href= "http://sjfzxm.com/news/index_s.asp" > Semir dress < /a > announced that the 71% equity framework agreement of zhe Mu sang Holdings Limited has been terminated, and the latter has the GXG brand of high-end menswear.

The takeover was the first merger after Semir's listing, and the reason for its failure was unclear.

The analysis pointed out that this news is a bad thing for Semir clothing, Semir's short term < a href= "http://sjfzxm.com/news/index_s.asp" > share price < /a > pressure.

Yesterday, Semir apparel prices fell below.

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In June 19th of last year, Semir announced that the board of directors passed the motion on the framework agreement of the company buying "Ningbo p a" > zhe sang Holding Co., Ltd. < /a > shareholding, and purchased 71% of the shares of zhe Mu Rong management, Yang Rong Rong, Yu Yong, Zhu Zhaoguo, Tu Guangjun and Mao Chunhua, with an expected paction volume of 1 billion 980 million yuan to 2 billion 260 million yuan, 2 billion 260 million of them were purchased from the five people of Yang zhe Rong, "Tu Guangjun", "Tu Guangjun" and "Mao Chunhua".

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< p > announcement said that since the signing of the framework agreement, the company has actively carried out related work, including the financial audit and asset appraisal of Ningbo zhe Mu sang Holdings Limited, and has carried out consultations on the specific pfer plan of equity pfer with Zhejiang zhe Holdings Group Limited, Yang Herong, Zhu Zhaoguo, Yu Yong, Tu Guangjun and Mao Chunhua (hereinafter referred to as "Transferor").

As of December 31, 2013, the company and the pferor failed to agree on the specific terms of the equity pfer agreement.

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< p > Zhejiang businessmen securities speculate that the failure of < a href= "http://sjfzxm.com/news/index_s.asp" > acquisition < /a > is mainly due to price reasons.

According to reports, at the end of December last year, Semir announced a 1 billion 700 million cash utilization plan (1 billion to buy financial products, 700 million permanent supplementary liquidity).

This figure is close to the original planned acquisition fund.

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< p > < strong > the price is too high to make the acquisition pressure less than /strong > /p >

< p > on the other hand, after the announcement of the initial merger and acquisition plan in June last year, the market generally agreed that the price of the company was too high and the stock price fell, which added pressure to the follow-up consultation between the two sides.

In addition, GXG originally planned to go public, and then chose to buy and buy in the background of IPO's stagnation. Now IPO restarts, and it also provides a possibility for its re listing.

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< p > analysis concludes that the termination of mergers and acquisitions will have some negative effects on the company in the short term, because the market has been incorporated into the GXG factor in Semir's performance in a certain extent, but this is more beneficial to the medium and long term development of the company in the 2014.

< a href= "http://sjfzxm.com/news/index_s.asp" > Guotai Junan Securities < /a > analysts say that the company has ample cash in its books, and the sales of offline terminals are still in the doldrums. The number of alternative acquisitions is increasing, and the new acquisition is expected to become a catalyst for the future.

From the three quarter 2013 report, Semir apparel has 4 billion 200 million yuan in cash, which is the most powerful company in the brand clothing business to buy and merge. It is a big probability to expand and integrate industries through acquisitions.

In 2013, the clothing industry will continue to shuffle, and more and more suitable prices will emerge.

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< p > data show that < a href= "http://sjfzxm.com/news/index_s.asp > > Semir clothing 2014 spring and summer order will be < /a > growth rate is close to 15%. At the same time, it is estimated that the gross profit margin of the company will return to the normal level of 37% in 2014, which is estimated to increase by about 2 percentage points over the same period, and its performance growth is faster than that of revenue growth.

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