Why Do Taiping Birds Start Selling Their Profits And Share Prices?

"The store has been repeatedly mentioned in the past two years. It seems that the brand related to the entity store has been labeled with a hidden label - losing money.

And in January 9th this year, Zhejiang's famous clothing enterprises

(603877) listing on the Shanghai stock exchange became the first clothing company to enter the A stock market in 2017, just like a strong agent for the entity store.

But in fact, the April 18th Pacific bird annual report released in 2016 is not good looking.

Taiping bird, as an excellent clothing private enterprise in Ningbo, has been popular all over the world before listing.

As early as 2013, Taiping bird signed the first male model Zhang Liang, who was not very popular at that time, as spokesperson. Now 4 years have passed, and Zhang Liang has been very popular.

At that time, the Pacific bird seemed very prescient and its ambition was to become China's "ZARA".

4 years later, more and more birds in the shop seem to drift away from this goal.

According to the world clothing and shoe net, in April 18th, Taiping bird released its first annual report.

During the reporting period, the company achieved an operating income of 6 billion 320 million yuan, an increase of 7.06% over the same period, and a net profit attributable to the owner of the parent company was 428 million yuan, down 20.22% from the same period last year.

In the first year, the annual report gave investors such a Surprise, feeling a little surprised.

The price dropped, and the stock price ended. At the close of May 8th, the Taiping bird newspaper was 28.99 yuan, the share price fell to the lowest price, and the issue price was 21.3 yuan, with a price difference of only about 9 yuan.

Profits and share prices fall down "Golden Phoenix"

Taiping bird was founded in 1996 and has been ranked the country.

Industry sales revenue and profit of 200 strong units, sales scale ranked the top 10 in the national garment enterprises.

The clothing industry of Taiping bird has maintained the rapid growth of 40-50% in recent two years.

The Taiping bird brand has also been awarded the honorary title of "China famous brand" and "China well known trademark" successively.

It's such a "young and promising" fast wear.

But in the first year of listing, it experienced a "cold spell".

As of December 31, 2016, Taiping bird sales increased by 7.06% to 6 billion 320 million yuan over the same period, but net profit dropped by 20.4% to 428 million yuan over the previous fiscal year. These two items were lower than expected.

As for the sharp drop in profits, Taiping bird explained that last year's overall net profit decline was mainly affected by China's macroeconomic and industry slowdown, retail channel changes and core brand PEACEBIRD sales lower than expected negative factors.

According to the insiders, the sales population of Taiping bird is changing. The main crowd of women's clothing has gradually changed from 70 before and after 80 to 85 and 95.

In order to cope with the market pformation, Taiping bird has gradually shifted the core of women's clothing from the original workplace style to leisure wind and literary maiden, so it has a period of running in with the new market.

The net profit of Taiping bird is not as good as expected, and the increase in sales cost is also a very important reason.

This is because in the first half of 2016, Taiping bird opened 161 stores directly, which directly led to the corresponding increase in sales costs. The total profit of new stores was relatively low during the consumer period. This has also become the main reason for the decline of net profit in the first half of 2016.

The profit is not as good as expected, so that the Taiping bird's mind is not smooth. Even the stock price that has fallen for several days has once again brought the "Golden Phoenix" back to its original form.

Since March 28th, the price of Taiping bird has fallen from the opening of 41.8 yuan to 28.99 yuan in May 8th closing, or 30.6%.

Has returned to the issue price of 21.3 yuan of 20 yuan stock ranks.

It seems that this highly opposed trend will soon fall into the stereotype of the decline of new shares.

The market value of Taiping bird has dropped from 24 billion 600 million yuan in March 16th to 15 billion 900 million yuan in today's closing, which has nearly reduced by 10 billion yuan.

The house is leaking for a rainy night.

While the price of the stock fell, the director and general manager of the company had applied for resignation in April 14th, and no longer any post of the company after his resignation.

Just listed, the general manager left office.

Is it to cash in and leave? This undoubtedly gives investors a tight mind.

The way of listing and leaving is reappearing in this golden phoenix, which is only expected to be high.

It's really the city to play.

Heal the hearts and minds of 600 stores

Even with the double blow of a sharp drop in profits and a setback in share prices, Taiping bird threatened to increase 600 stores in 2017, including 150 Direct stores and 450 additional franchises.

In fact, the expansion of stores has always been the main way to raise funds when Ping bird goes public.

According to the prospectus, Taiping bird intends to invest 579 million yuan in marketing network construction projects, giving priority to the development of sales channels in central and Northern China.

That is to say, take the lead in developing 3 or 4 tier cities.

But it is worth noting that in 2016, the stock days of Taiping bird not only increased by 27 days from 198 days compared with that of last year, but also increased by 55 million 385 thousand and 800 yuan due to the impairment of assets caused by the decline in inventory prices, while in the first quarter of 2017, the proportion of commodities in the over season increased a lot, resulting in a sharp increase in the allowance for inventory depreciation, which led to an increase in asset impairment losses to 9106 yuan and a growth rate of 58.06%, which affected the company's first quarter results.

CSC also mentioned in the research report that Taiping bird inventory rose year by year, and the company's operating capacity declined.

The company also said that it was planning to achieve operating income of 7 billion 200 million yuan in 2017 and achieve a net profit of 450 million yuan.

Will it be another empty cheque? As a fast growing brand in recent years, Taiping bird has been developing rapidly. But will the strategy of expanding the territory expand the net profit of the company and let those outstanding stores pay for those newly opened losses?

In 2016, there were great changes in the number of Taiping birds.

In 2016, Taiping bird closed 700 stores and opened 1185 new stores.

The total number of stores has reached 4279.

When I was in Guanqian Street, Suzhou, I saw 7 or 8 Taiping birds in a street.

More importantly, the average single store income of stores, franchisees and agencies in the 12 month continuous business during the reporting period decreased by 3.92%, 7.35% and 2.32%, while the area of Taiping bird store increased by 22.32% over the same period last year.

{page_break}

China ZARA or "county ZARA"

In April 29th, an area of 1200 PEACEBIRD brand collection shop opened in Wuhan, Chu Han Han Street Wanda shop, and gathered the three major brands of Taiping bird clothing: PEACEBIRDWOMEN Taiping bird dress, PEACEBIRD MEN Taiping bird menswear and children's wear Mini Peace.

Is this the Taiping bird that wants to become China's ZARA?

ZARA's dress is still right, and style efforts are close to the first line, but Taiping bird's menswear is a nightmare that can't escape.

Zhang Liang and Lu Han were invited to stand for their platform, but the enemy did not change their design style, but the style of the 32 line small town still lingered.

When Taiping bird develops women's clothing, it should also change men's clothing at the right time.

In the long run in the capital market, we must base ourselves on the product itself.

The core consumer of Pacific bird is 25 to 35 years old.

This type of consumer group has a strong pursuit of fashion, but this customer group is more changeable and less loyal to the brand.

The age limit of the core group of the Pacific bird is not precise enough.

Strictly speaking, there is a big difference between the demand of consumers aged 25-30 and 30-35.

The Pacific bird can further segment the core brand's target customers.

As a benchmark brand in the fast fading industry, the Pacific bird is still looking forward to its Phoenix Nirvana.

More interesting reports, please pay attention to the world clothing shoes and hats net.