Bull Market Cautious Buying "Clothing Stocks" Nearly Six Net Profit Decline In Garment Enterprises

With the announcement of the failure of the reorganization of the evening of November 26th, Men's wear brand The opening of Busen's stock market ended next day. This is a microcosm of struggling struggling domestic garment enterprises.

According to the "investor" reporter statistics, the first three quarters of this year, nearly 60% of the apparel listed companies announced the decline in performance, and another 10% enterprises net profit growth rate of less than 20%. Among them, the net profit of Busen shares fell 393% year-on-year, the worst performance among the apparel listed companies.

However, another phenomenon that people can not ignore is that clothing The current situation of sales under the offline and online businesses is "ice and fire".

In the past "double eleven", Tmall The price of 57 billion 100 million yuan has been set, and clothing consumption is still a major force.

However, a lot of clothing companies have to close their stores to save costs, and strive to avoid further decline in net profits.

"Low speed growth will become a new situation for many garment enterprises in a long period of time." Yang Jinchun, Secretary General of the China clothing association, said, "this is mainly due to the current" new normal "economic situation.

Transformation is inevitable. In order to find the best way to transform, the Chinese garment industry is still exploring. The failure of Busen's restructuring is a failure in transition.

In November 27th, the investor newspaper telephone contacted Busen's shares, Dong secret life crane Lei. The office staff who answered the phone said that he was not there and would probably be back next week. Reporters then sent the outline of the interview to the company's mailbox, but as of press time, no reply was received.

However, in the difficult situation, enterprises still perform quite well. Take the men's clothing brand Hai Lan's home as an example, it is valued by many brokerages, some people think that its unique business model is even inferior to Moutai.

In order to understand the reasons behind its high growth and its profit model, the reporter recently called Hai Lan's home, and miss Xue of her securities affairs department said: "at present, the company does not accept telephone interviews temporarily." But she told reporters that she could contact the media department of the company.

The reporter then contacted Fang Yicai, director of the media department of Hai Lan home. He said: "the competition in the clothing industry is fierce now. Many colleagues want to learn the profit pattern of Hai Lan's home. If you write like a dragonfly, you can't write well; if you write too thoroughly, you may reveal business secrets. Finally, he declined the reporter on the grounds that "the current company's attitude towards the outside world is very low-key and inconvenient to be interviewed".

Nearly six net profit decline of garment enterprises

Busen shares lost 393%

Thirty years Hedong, thirty years Hexi. In recent years, garment enterprises have been trapped in the dilemma of high inventory and net profit decline.

In the Shenyang world [micro-blog] statistics clothing and home textile listed companies, a total of 36 members, excluding 3 home textile companies and new fertilizer enterprises Xinyang Feng backdoor Chinese clothing, there are 32 left.

In the first three quarters of this year, 19 of the 32 companies declined, accounting for 59%. Another 5 companies net profit rose less than 20%, accounting for 15.6%, the remaining 8 companies net profit growth of 21%~212%, accounting for 25%.

Affected by poor performance, clothing listed companies have gained limited profits this year. The industry has increased by 39% this year (up to November 27th), ranking forty-second in more than 100 Shen Wan II industries.

Judging from the performance of a single company, the net profit of Busen shares has dropped the most. According to the financial report, Busen shares lost 39 million 600 thousand yuan in the first three quarters of this year, down 393% compared with the same period last year. In addition, the net profit of Hinur and Meyer of the main men's wear also dropped by more than 100%.

For the sharp decline in performance, Busen shares brought a series of answers to investors in its third quarterly report: "net profit decreased by 393% over the same period last year, mainly due to a decrease in total profits and deferred income tax turnover."

Earnings report also showed: "total profit is 223% lower than the same period last year, mainly due to reduced operating profits."

Then, why does business profit decrease? "Operating profit decreased by 292% over the same period last year, mainly due to the decrease in sales during the current period." Busen shares said.

As for the fundamental reason for the reduction in sales, Busen shares did not give the answer. The results showed that its first three quarters business income was 350 million yuan, a year-on-year decrease of 25%.

When it comes to the whole year of 2014, the company that only went public in 2011 is not optimistic about the outlook. Three quarterly report shows that the company expects 2014 year net profit will be 53 million 740 thousand yuan ~5624 yuan. In 2013, the net profit was 5 million 800 thousand yuan.

Busen shares explained: "the overall market situation of the company is still grim, the clothing terminal market is weak, customer orders are reduced, and sales scale is declining."

However, unlike these enterprises, the performance of some garment enterprises is quite impressive under the severe situation.

In the first three quarters, the net profit of 8 garment enterprises increased by more than 20% over the same period. According to the size of the performance increase, it ranked in order to open industrial sea Lan's home, YOUNGOR Maison shares and leading shares (bar Jie share Pathfinder and Semir apparel).

Among them, the net profit of open industry increased by 212% compared to the same period last year, the growth of Hai Lan's home was 84%, and YOUNGOR's growth was 49%.

It should be pointed out that most of the main revenue from opening up industry and YOUNGOR is not from clothing.

According to the latest financial reports, the main business of opening industry has become: medicine accounts for 79% of the main revenue and clothing accounts for 17%; the main structure of YOUNGOR is: real estate tourism accounts for 66% of the main revenue, clothing manufacturing accounts for 30%, textile industry accounts for 2.7%, and electricity accounts for 1%.

　　 Hai Lan's home 98% of the main revenue comes from clothing. Its net profit in the first three quarters was 1 billion 610 million yuan, an increase of 84% over the same period last year. The company has been listed on shell technology since April of this year.

Turning to the investment value of garment enterprises, Changjiang Securities mainly recommended Pathfinder and Hai Lan's home. The former is expected to benefit from the development of sports policies favorable to the development of the sports industry. The latter has a larger market share because of its unique business model and high quality and medium priced products. Besides, it also suggests paying attention to Semir costumes.

Profit decline leads to shop closes

The road of transformation is full of thorns.

Judging from the general decline of profits, the current environment of garment enterprises is not optimistic.

In fact, in recent years, high storage has always been a headache for garment enterprises. Fierce competition has further reduced the profitability of garment enterprises.

According to "investor newspaper" reporter statistics, the first three quarters of this year, the apparel home textile industry's net profit margin level is only 9.97%, compared with the 13.57% level in 2007 dropped by 3.6 percentage points.

With the gradual decline of profits, many garment Brand Company began to shrink the front line, closing stores and saving costs. According to the reporter's incomplete statistics, as of the end of last year, seven wolves (10.72, 0, 0.00%) closed 347 stores, nine Mu Wang closed 73, the card slave road closed 53, Hinur closed 46. The 4 companies are mainly clothing companies for men's wear brands.

In such a severe situation, transformation is imminent. However, in the face of difficulties, some people face up, while others are afraid to shrink back.

Most of the enterprises that are sticking to the garment production position have chosen to turn to the online industry and open up a new pattern in the field of O2O. Others are ready to abandon the main garment industry and carry out cross-border restructuring.

Traditional clothing enterprises try to lay out on line, which can be seen from the past "double eleven" Carnival.

CITIC Securities recently released research report shows that in the "double eleven" war, the traditional line of brand competitiveness has further highlighted, the top ten brands in the clothing industry are Korean brands, while others are strong brands. And the top five of the clothing sub categories are mostly traditional offline brands.

Among them, Semir clothing has performed well this year, with a total sales of nearly 200 million yuan, and its casual wear and children's wear have doubled, ranking first in their respective categories. The sales of explorers reached 1.2 yuan billion yuan, an increase of 58% over the same period last year, ranking first in outdoor category but slower than that in the whole year.

"The growth of future brand enterprises will become an important trend from more online to multi-channel integration." CITIC Securities believes.

However, Ma Gang, a well-known clothing industry expert, said: "the O2O model of domestic fashion dealers is not mature, nor can it solve the most troubled inventory problem of domestic apparel manufacturers."

In addition to the online layout, many companies have begun to make partial transformation to other fields, such as the wholly owned subsidiary of Maison culture, and the United States and costumes are planning to set up the "Shanghai Huarui bank Limited by Share Ltd" as the main sponsor. There were earlier YOUNGOR and red bean stocks marching in the real estate sector.

In the face of difficulties, some companies choose to withdraw from the clothing industry. Such as Chinese clothing that has been backdoor by fertilizer company Xinyang Feng. Another typical case is Busen shares, which is the worst performance this year.

In the first half of, Busen issued a major reorganization plan, which is to realize the backdoor listing of Guangxi Hong Wah agricultural Limited by Share Ltd through a series of transactions such as major asset replacement and asset sales. After the completion of the transaction, the controlling shareholder and the actual controller will be changed to Li Yan and Du Changming. Busen shares will be transformed from the manufacturers of brand men into high-quality agricultural products distributors.

But with the announcement of the restructuring of Busen shares in November 26th, the transformation was aborted.

Hai Lan's home leads the clothing enterprise

Shop mode is better than Moutai.

The first 10 thousand are free! The Tmall flagship store at Hai Lan home.