Vigna S: 3 Years To Reverse The Real Price?

Vigna S's success will pass such a signal. The A and Mass Phil's He Xinhe shares will be only a matter of time.

2011 IPO for the first time Rush through customs V (GRASS), the high-end women's clothing brand in Nanjing, has been relieved for two times in 3 years. In October 22nd, the China Securities Regulatory Commission announced that the Limited by Share Ltd was first approved.

According to the prospectus, Vigna S's public offering amount does not exceed 36 million 995 thousand shares, accounting for 25% of the total share capital after the public offering. After the issuance, the total stock capital does not exceed 147 million 980 thousand shares, and is intended to land on the Shanghai Stock Exchange.

There are three investment projects for IPO: one is the 260 million yuan marketing network construction project, 152 new stores will be built in two years, two is the upgrading project of R & D center, and the other is two yuan. The company said that the sales network construction is expected to achieve annual sales revenue of 332 million yuan, net profit of 66 million 199 thousand yuan.

And for the whole high-end women's clothing company in China, the greater the wind direction of the event is that it is a "unique seedling" that nearly 10 women's clothing companies have successfully entered the A share market in the past 3 years after the successful listing of's stock market in 2011. This undoubtedly greatly boosted the confidence of several other similar women's clothing companies who are queuing up to go through the customs.

Profit margins were "bruising" significantly improved, gross margin remained at around 67%.

Just like La Natsu Bell, a women's clothing company that was successfully listed on the HKEx recently, the way of Wagoner's entry is also quite frustrating. Vigna S first broke through the customs in 2011, when he was a partner. But with partners, fate is very different. In July 18th of that year, the securities and Futures Commission rejected Vigna S's IPO application, and in July 22nd, the first application of the group was approved.

The main reason for Vigna S's failure to enter the company for the first time is that the growth of clothing sales in 2008 ~2010 did not match the rapid expansion of stores and the large increase in revenue.

In 2010, the company's output increased by 28% compared with the same period last year, but its sales volume decreased by 7% compared with the same period last year. Its operating income increased by 50% compared with that of the previous year, while the gross profit of the main business increased by 80%. However, the sales of the core products decreased year by year, and the sharp increase in its operating income was mainly due to the increase in the price of the products.

The second point is also more important because its core competitiveness is insufficient. In 2010, Vigna S's annual sales income was only 313 million yuan, and net profit was only 53 million 740 thousand yuan. This compares with the strength of Semir shares, which were sprint IPO for 6 billion 200 million yuan in sales and 1 billion yuan in net profit, with dozens of orders of magnitude.

Let's take a look at the similar position as a breakthrough partner, the company's revenue in 2010 is 559 million 100 thousand yuan, net profit is 152 million 100 thousand yuan, gross profit margin is 56.71%. In 2008 ~2010, the annual compound growth rate of operating income and net profit was 58.48% and 43.27% respectively.

Moreover, in 2010, the price of Wenger products increased by nearly 50%, and the marketing channels failed to follow up in time, resulting in a substantial increase in inventory in the short term and a 10% decline in self shop single store sales year-on-year. Data show that by the end of 2010, its inventory increased from 38 million 160 thousand yuan at the end of 2009 to 101 million yuan, and the inventory turnover rate was only 1.36. In this case, Semir and LAN Zi were listed successfully, but Vigna S's failure to make a breakthrough for the first time is reasonable.

In April 2012, Vigna S restarted IPO, breaking through two degrees. This time, although only 3 years away from 2011, Vigna S has come up with a beautiful performance.

The latest prospectus shows that in 2011 ~2013, the revenue of wnnasse was 505 million 100 thousand yuan, 597 million 900 thousand yuan, 746 million 300 thousand yuan (up 24.8%), net profit of 91 million 101 thousand and 100 yuan, 94 million 789 thousand and 500 yuan, 135 million 600 thousand yuan (up 43.48%%), and the gross profit margin of main business was 68.80%, 67.16% and 67.65% respectively.

A set of comparable data is that in 2011 ~2013, the gross profit margin of the main business of the group was 59.96%, 61.1% and 61.71% respectively. In the same period, the average gross profit margin of Kaiser, stock, Mass Phil, Hsing Ho and 5 were 5, 66.72%, 66.72% and 67.43% respectively.

These data indicate that in the past 3 years, the strategy of large price increases has been effective, and profitability has improved significantly. Prospectus data show that in 2014 1~6 months, the average sales price of the company's products was 1002.60 yuan / piece; in 2013, the average sales price of the company's products was 887.62 yuan / piece.

The company said it benefited from the company's direct operation mode, and it was different from the same industry listed companies in terms of pricing power, product price, cost structure and so on. The proportion of direct battalion is high, the company is not affected by franchisees in pricing, and can carry out the brand strategy and pricing strategy of the company. When the brand image is rapidly upgrading, the company can substantially raise the price, and it will eventually be reflected in the main advantage of gross margin.

According to the survey data of China Business Federation and China National Business Information Center quoted by prospectus, in 2012 and 2013, V GRASS brand women's clothing ranked the top five in the market share of similar products.

　 Direct revenue accounted for 95.53% of Jiangsu and Shandong were the key markets.

Vigna S, headquartered in Nanjing, formerly known as Nanjing strong grass Fashion Industrial Co., Ltd. Wang Zhiqin and Song Yanjun, the controlling shareholders and actual controllers of the company, hold 85 million 444 thousand and 800 shares together, and the total shareholding ratio is 76.99%.

Its main brand is V. GRASS, located in high-end women's clothing. Its products are mainly divided into 4 series: fashion, leisure, elegance, OL and nobility. Over the years, we have gradually formed the core brand appeal of "fashion and self-cultivation" and won a loyal customer. In 2013, sales of gold and silver cards accounted for 43% of the total sales. That is to say, in the total sales of about 750 million yuan that year, about 320 million yuan was contributed by the gold and silver card members.

What is worth mentioning is that almost all the shops of wirnas are direct battalions. As of June 30, 2014, the total number of shops was 356. Among them, 316 shops are direct stores, accounting for 88.76%, and the business revenue of direct outlets is 398 million yuan, accounting for 95.53% of the main business revenue.

These direct shops are mainly distributed in the quality department stores and shopping centers of all major cities in the country, such as Parkson, Wangfujing department store, Shanghai eight hundred companion, Shenzhen Huaqiang Maoming industry, Guangzhou guangbai group, Nanjing Golden Eagle, Shanghai Huarun era, Shenzhen JinGuanghua, etc. Moreover, its location in shopping malls is more optimized. At the end of the first half of the year, 341 of the 344 shopping malls in the company were located in the side hall of the shopping mall, accounting for 99.13%.

Jiangsu and Shandong are the key markets of Vigna S, with more than 40 shops in each province. In 2013, the total sales of the Ginza group of the famous chain store in Shandong amounted to 58 million 823 thousand and 800 yuan, accounting for 7.88% of the total sales of the company. The total sales of the Golden Eagle commerce and trade department in Nanjing were 40 million 651 thousand and 700 yuan, accounting for 5.45% of the total sales of the company. The company's top five customers account for 25.95% of total sales. In addition, the number of shops in Hubei, Anhui and Liaoning provinces is around 20.

Vigna S believes that under the direct camp mode, the company can choose its own location, decorate itself and directly manage its headquarters. It can thoroughly implement the brand strategy and pricing strategy, respond to the needs of consumers quickly, guarantee the intensity of brand promotion, and also maximize the profits of the entire supply chain, so as to provide a strong guarantee for the company to continuously upgrade its brand level.

Of course, under the direct camp mode, the company's supply chain management level and inventory level have also been tested. Prospectus shows that at the end of ~2013 in 2011, the company's inventory was 120 million yuan, 170 million yuan and 154 million yuan respectively, and the inventory turnover rate was 1.49, 1.35 and 1.44 respectively. Taking the data at the end of 2013 as an example, the proportion of total assets at the end of the year is 26.46%, and the inventory pressure is still large.

　 Speeding up shop opening and upgrading R & D level is still the main way to raise funds.

Vigna S's rapid expansion was in 2010 ~2011.

In order to prepare for the first sprint IPO, since 2010, Vegas has accelerated the pace of shop expansion. In 2010 and 2011, more than 100 new stores opened each year.

But for the first time in 2011, when IPO was not available, and the overall market downturn began in 2012, the company slowed down its opening up speed, focusing on strengthening the existing store management and optimizing the network structure. In 2012 and 2013, the company adjusted 33 stores and 44 stores respectively.

With the rapid expansion of terminals, Vigna S also introduced international design team to enhance the company's design level.

In 2010 and 2012, the company set up design and research centers in Shanghai and Seoul respectively. While researching and developing independently, the company also launched cooperative research and development in foreign countries. In 2013, it signed a cooperative design / project contract with Italy design company D'Eril Milano Srl, Korea design company I.S.PLANNING and DONO COMMUNICATION, and jointly developed new products in 2014. As of the first half of this year, the company has 136 designers. In 2011 ~2013, the style of the company's listing was 898, 966 and 875 respectively.

In addition, the middle and high class women's clothing has many characteristics, such as many styles, small batch and short listing period. It has a very high demand for supply chain management. Vigna S also has certain advantages in this aspect. Based on the information system, the company has effectively organized the departments of design, planning, procurement, production, sales, logistics and other departments, and implemented coordinated operation, thus forming an effective supply chain management system. For example, the Design Department understands the consumers' preferences through the real-time understanding of the sales of various styles, and designs the best selling clothing styles accordingly. The commodity planning department forecasts the future sales and formulating business plans through the summing up of past sales, and the commodity management department monitors the terminal sales and inventory in real time.

For the next Development Vigna S said that China's high-end clothing brand will enter a stage of design upgrading, brand promotion and sales expansion. The importance of design ability in the future women's clothing competition is becoming increasingly prominent. Therefore, the main fund-raising of this fund-raising fund is to set up flagship stores, high-end shopping malls, etc., so as to raise the channel grade and increase the number of terminals, and on the other hand, invest in R & D design.