Nearly 60% Of Garment Enterprises Profitability Decline Through Mergers And Acquisitions To Seek Pformation

The garment industry has been in decline for two years.

Clothing enterprises are actively slowing down the expansion of stores and handling inventory. If the processing is not good, the performance of the newspaper is not good.

Enterprises are also seeking new ways to choose M & A or hand in business. "

A head of the investment department of a large insurance company told reporters about the current situation of clothing enterprises.

The reporter asked him how he viewed the current market performance of the garment enterprises. He only said that the stock market did not contain relevant stocks in the clothing industry.

The 2014 annual report is coming to an end.

According to Shen wan3 industry classification, the recent statistics of the 33 mid 2014 apparel listed companies in the A share market were made, including five categories: Men's wear, women's wear, casual wear, shoes and hats and other clothing.

As of August 27th, except the 3 listed companies of Busen (18.25,0.00,0.00%), Jia Linjie (4.24,0.00,0.00%) and leading stock (9.84,0.07,0.72%), the performance of the other 30 companies had surfaced.

According to the Wind statistics, in the above 30 A share clothing listed companies (Note: 29 of them have already published the China Daily, Jiangsu three friends (7.40,0.07,0.95%) only released the results express, no stock data), 13 companies in the first half of the year belong to the shareholders of the parent company's net profit increased compared with the growth, 17 companies fell year-on-year, the latter accounted for 57%.

The top three of the net profit growth rate was 12.28,0.14,1.15%, YOUNGOR (7.52,0.09,1.21%) and Hai Lan home, with an average growth rate of over 130%.

The worst performing 3 companies were Hinur (7.90,0.05,0.64%), 6.59,0.15,2.33% (5.02,0.00,0.00%) and Jin Feida (5.02,0.00,0.00%), with net profit falling by an average of 109%.

While nearly 60% of garment enterprises are running down, many garment enterprises are suffering from high inventory.

Compared with the first half of 2013, the inventory of 20 companies in the 29 clothing companies listed in the first half of 2014 showed an upward trend.

According to the calculation, as of the end of the first half of 2014, the inventory of the above 29 clothing listed companies reached 46 billion 100 million yuan, up 3 billion 700 million yuan from 42 billion 400 million yuan in the same period last year.

At present, how to digest the inventory of nearly 50 billion of clothing companies is still a shadow of the whole industry.

In the case of high inventory and difficult profitability, garment companies began to seek a way out, and some companies began to turn their attention to mergers and acquisitions.

Net profit decline of nearly 60% Enterprises

Ping An Securities said in the research report, "clothing consumption in the first half of 2014 basically continued the weak trend in 2013.

After entering the 2014 year period, the retail sales of 100 major retail enterprises grew at a historic low year-on-year, indicating that clothing sales in the second half of 2014 are still not optimistic.

In the 30 clothing listed companies that have disclosed the first half of the year, 17 companies' net profit attributable to parent companies declined in the first half, accounting for 57%, with an average decline of 45%.

7 of them came from men's clothing industry.

In the first half of the year, net profit fell to the top of the enterprises.

In the first half of this year, the company achieved operating income of 468 million yuan, down 24.75% compared to the same period last year, and realized net profit of -1878 million yuan, down 135.26% compared with the same period last year.

For the poor performance of 5.73,0.08,1.42%, Lei Yu, an analyst of textile and garment industry in Changjiang Securities, pointed out in the Research Report: "the terminal is in a slump, the company helps the franchisee ease the inventory pressure, restructure the channel goods, the sales volume of the franchisee is lower than expected, and the group customization business is reduced, while the new terminal cultivation period is extended, and the direct income is not expected, resulting in a decline in operating income."

However, the performance of the apparel industry can be described as "ice and fire". On the one hand, net profit of the company has dropped to an average of 109%. On the other hand, the industry has been able to generate an average growth of more than 130% of the net profit of industry, YOUNGOR and Hai Lan.

The first half year of operation opened up 445 million yuan in business revenue, an increase of 6.04% over the previous year, and a net profit of 42 million 758 thousand and 600 yuan, an increase of 218.96% over the same period last year.

What needs to be explained is that the increase in business performance is not due to the good performance of the main business.

The sharp increase in net profit during the reporting period was mainly due to the 3.95% share of the company pferred to Shanghai Hua Tuo Pharmaceutical Technology Development Co., Ltd., which confirmed that the net profit of the next reporting period increased by 215% compared with the same period last year.

In the first half of 2014, YOUNGOR achieved operating income of 7 billion 600 million yuan, down 5.16% from the same period last year, and realized net profit of 1 billion 800 million yuan, up 90.52% over the same period last year.

In the China Daily, the company said that a significant increase in profits was mainly due to the contribution of clothing business, and its performance increased by 27% over the same period last year. The Ningbo Bank (9.47,0.06,0.64%) changed its equity method into the consolidated statement.

Ningbo bank made a net profit of 3 billion 86 million yuan in the first half of the year. Its semi annual report shows that YOUNGOR has ranked the second largest shareholder of Ningbo bank.

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Inventories continue to climb closer to 50 billion yuan

While nearly 60% of garment enterprises are running down, many garment enterprises are also suffering from high inventory.

And inventory has become an urgent problem for textile and apparel listed companies.

According to the inventory change trend of Wind statistics, as of the end of the first half of 2014, the inventory of 29 clothing companies listed on A shares reached 46 billion 100 million yuan, up 3 billion 700 million yuan from 42 billion 400 million yuan in the same period last year.

In the above 29 garment enterprises, the inventory of 20 enterprises increased year by year, including Hai Lan home, Xin Yang Feng and 15.590,0.41,2.70%.

In particular, the stock of Hai Lan and Xin Yang Feng increased 985% and 345% respectively.

Main business casual wear 11.99,0.13,1.10%, main women's clothing, Kim Feida and men's clothing enterprise YOUNGOR and other 9 enterprises at the end of the first half of 2014, inventory has decreased to varying degrees.

In the first half of the year, the home of the fashion men's clothing brand, the home of the company, was very popular in the capital market. In January this year, the company successfully borrowed the shell of 9.77,0.05,0.51%.

In the overall downturn of the garment industry, the home of Hai Lan, a "backdoor listing", has achieved "high growth against the market".

According to the report, the business income of Hai Lan's family in the first half of the year was 5 billion 683 million yuan, an increase of 61.53% over the same period last year, and net profit of 1 billion 228 million yuan, a 82.79% increase over the same period last year.

Compared with other clothing listed companies, the quality of Hai Lan's home is relatively large.

At present, the market value of Hai Lan home is 43 billion yuan, ranking first in the clothing industry. It is almost the total market value of other men's clothing listed companies: 8.92,0.11,1.25% (market value 6 billion 800 million yuan), YOUNGOR (16 billion 900 million yuan), noble bird (7 billion 400 million yuan) and 11.14,0.09,0.81% (6 billion 300 million yuan).

How did the company's high growth performance come true?

"Due to the reverse acquisition of Keno technology by Hai Lan's home, the 2014 consolidated report caliber includes the performance of Hai Lan home Clothing Co., Ltd. and keno technology 3~6, and the 2013 year-on-year caliber includes Hai Lan Home Fashion Co., Ltd.

Wang Liping, an analyst at Shenyin and Wanguo, pointed out in the research report.

In addition, Mi Hanjie, an analyst at Orient Securities, said in the Research Report: "the growth of the company's revenue comes mainly from the expansion of channels and the enhancement of store efficiency, including the increase in the average area of shops.

The number of stores in Hai Lan home brand increased by 277 in the first half of the year, and the total number reached 3164.

In addition, the company further strengthened the management of stores, and effectively enhanced the single store profitability of Hai Lan's home.

Seeking pformation through mergers and acquisitions

In the context of high inventory and declining performance, some garment enterprises began to seek pformation.

Zhong Hui, a securities analyst at XinDa, said: "from the internal point of view, the main business is difficult, and the poor are thinking. The clothing companies are also seeking new outlets, or choosing mergers or acquisitions.

Most of the enterprises in the clothing industry belong to the private sector, making decisions more flexible in the process of pformation and upgrading.

The growth of retail sales of domestic garment enterprises has declined, which has further increased the inventory pressure and operational risk of sales terminals, and promoted the pformation and upgrading of garment enterprises in terms of business mode and channel structure.

At the same time, with the change of consumption habits and the rapid development of mobile Internet, the rapid development of e-commerce business has also had a great impact on the traditional retail mode.

Its pformation comes from two aspects.

On the one hand, enterprises have slowed down the pace of extension and expansion, and reduced the scale of stores.

For example, King Mu slowed down the progress of opening stores, and closed 73 stores with poor efficiency.

In this regard, the company announced that the main reason is that terminal consumption continues to slump, in order to control operational risks.

On the other hand, enterprises can cultivate new profit growth points through mergers and acquisitions hot industry and multi brand operation.

Judging from the performance of the capital market, 3 of the top five companies in the 30 companies that have announced interim results from the beginning of this year to August 27th are involved in major reorganization and merger matters. They are hundred circle trousers industry (44.03, -1.06, -2.35%), Hai Lan home and Kaiser 11.10,0.03,0.27%.

Among them, Kaiser shares are going to enter the game industry through mergers and acquisitions.

The company announced recently that it intends to buy a 100% stake in the cool mobile interactive business, a mobile game developer, with a huge sum of 750 million yuan.

At present, the stock price is up to 219% of the share price plus the cash payment before the suspension. It intends to acquire 100% stake in global Tesco by 1 billion 32 million yuan.

Xu Jiadong and Li Peng of this paction promise that the net profit from 2014 to 2017 will not be less than 65 million yuan, 91 million yuan, 126 million yuan, and 170 million yuan respectively.

The traditional business of the 100 round trousers industry is the production and sale of trousers for men and women. It covers all kinds of trousers, casual pants and jeans. The target market is mainly two or three and four line cities. The main location is the 25~55 year old middle-income crowd.

Endogenous growth alone has been unable to save the downward trend of performance.

The company believes that cross-border electricity supplier pactions in recent years show a rapid development trend, so the launch of additional issuance, acquisition of cross-border electricity providers, in order to enhance the profitability of the company.

However, the merger has attracted market doubt.

In view of the announcement of the issuance of the hundred round pants industry, the head of the investment department of the insurance company said: "is the industry advantage of global Tesco enough to support such a high performance promise? At present, the main participants of the retail B2C e-commerce industry in China are Alibaba, Jingdong, and amazonson.

Secondly, the product of trousers is more popular than the upper garment products, which increases the desire of consumers, and the serious homogenization of pants products on the market, and the fierce competition in the market.