The Supplier Of Victoria Has Become The Largest Underwear Manufacturer In The World.

Two months after listing, the stock price soared by 84%. The world's largest bra maker, Jeanne International (Holdings) Limited (hereinafter referred to as Virginia), has entered the public view.

As of December 4th, the price of Virginia closed at HK $10.32, a 84% jump over the Hong Kong market price of HK $5.60.

Hung Shui Yi, the founder and chairman of the 53 year old company, has 72% of Virginia's shares (about 885 million shares), and personal assets soared to more than HK $9 billion 100 million (about 7 billion 510 million yuan).

According to the prospectus, the company was founded in 1998 to provide a variety of lingerie products including chest circumference, sports chest, chest cups, underwear and body sculpting, as well as functional sports products, such as

Seamless adhesive functional sports apparel and wearable sports products.

You may have no idea about this company called Virginia, but you must be familiar with the big customers it serves, including L Brands's list.

Victoria's Secret and sports brand VSX, PVH's Calvin Klein and Warner's, Hanes Brands's Bali and Maidenform and Bali, Adidas group's "Ho Ho", and the company's "under".

In the fiscal year of -2015, the products sold to the United States contributed 63.4%, 70.7% and 70.5% of the total income to the United States.

Unlike traditional OEM or ODM suppliers, Virginia provides an integrated service for customers from product concept conception, raw materials and technology research and development, functional specification design to manufacturing based on IDM Innovative (Design Manufacturer), which is an innovative design manufacturer.

For example, the Very Sexy evergreen series is developed by Wei.

Virgin and Victoria's parent company, the largest underwear in the United States.

L Brands has been a partner for over 15 years and is one of the largest underwear suppliers in the world. Its form of cooperation includes conceptual derivation, product development and final delivery.

According to the Bank of China International Holdings Limited, about 35% of virgin nickel's sales come from L Brands.

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"Globally, only Victoria's Secret suppliers are large enough to go public."

Bloomberg quoted the analysis of Limited Hong Kong Company Jackson Yu of Xinghai overseas Chinese securities, saying: "Victoria's Secret is very creative in fabric and style, and the delivery cycle is shorter than other traditional underwear brands.

This puts forward higher requirements for suppliers. It is not easy to serve as the supplier of this brand.

According to Frost&Sullivan, an international business consulting firm, Virginia's 2014 chest yield accounts for 1% of the world's market share and is the world's No. 1 bra maker.

The prospectus shows that as of March, in the 2015 fiscal year, the company's chest circumference and underwear production reached 58 million 700 thousand.

Bust and underwear are the main source of income for the company.

In the first half of 2016, the revenue of the business was HK $1 billion 731 million (about 1 billion 430 million yuan), an increase of 20.2% over the same period last year, accounting for 69% of the total revenue of the group.

In all product lines (including chest circumference and underwear, sports chest, body shaping clothing and others), the growth of sports chest is particularly rapid.

At present, all products development and production of Virginia are carried out in Shenzhen workshop, and new factories in Vietnam and Suzhou are still under construction.

Vietnam's first plant is expected to be operational in the first quarter of 2016.

"We expect that we will have lower labor costs and tax expenditures in Vietnam than in China."

Virgin said in the prospectus.

Last week, Virginia released its first earnings since landing in the HKEx in October 8th, and its good results helped boost its stock price by 12.31% in second days.

According to the results, as of the 2016 half year of September 30th, Virginia's income increased 26.3% to HK $2 billion 510 million over the same period last year (about 2 billion 73 million yuan), and net profit increased 43.3% to HK $217 million (about 179 million yuan).