YOUNGOR Is Not Just A Clothing Company Selling Shirts Is Out Of Date.

With the fall of retail industry and the continuous decline of clothing and textile business, YOUNGOR (600177.SH), which is famous for its manufacture and sale of high-end shirts, has long been investing in other industries, relying on stock and even real estate. By the end of last year, the Zhejiang company had been "buying stocks" for ten years. Now, YOUNGOR is not a garment enterprise in a strict sense, but has gradually spanformed into an investment company with larger scale clothing business.

Although investment business has been regarded as a high risk by some market participants, YOUNGOR has made steady returns to shareholders in the past 10 years. Since its listing in 1998, YOUNGOR has offered its shareholders an annual net return on assets of two figures, only slightly below 10% in 2013.

YOUNGOR's investment income represents a change in operating profit and total revenue. In 2007, the proportion of YOUNGOR's investment earnings in operating profit jumped from 5% in 2006 to 76%, and its share of total business revenue jumped to 39%. Since then, except for 2013 and 2012, the two share has basically maintained at a relatively high level, of which investment income accounts for at least half of operating profit.

Since 2001, the recorded data show that YOUNGOR's clothing business grew fastest in 2005 to 2008, and its revenue grew to two digits, of which 2008 garment business revenue grew by more than 90%. YOUNGOR clothing business revenue and growth rate changes. However, since 2009, the growth of YOUNGOR's clothing business has slowed down. After 2012, the income of garment business began to slide.

In 2009, the ratio of investment income rose sharply in 2007, two years later. It is not clear whether YOUNGOR management has foresight, and in 2007 it realized that the clothing business will decline. But recorded data show that YOUNGOR's other main business, textiles, began to slide in 2007.

　　 Youngor The change of textile business income and growth rate. The slide in the past main business highlights the need for YOUNGOR to spanform in those years. If we do not go to the stock market, the high cost of clothing and textile business will eventually bring the company to a corner.

If we exclude the non recurring profit and loss items which are mainly investment income, compare the total business cost of YOUNGOR with the total business revenue, the operating cost rate of YOUNGOR will be over 80% since 1999 (second years after the listing). When the investment business was launched in 2007, the cost rate was over 85% in 9 years in 10 years.

The financial statements of YOUNGOR calculate the real estate business in the main business, so the above cost rate is the cost ratio of real estate and tourism business. If we exclude real estate and tourism, only calculating clothing and textile business, the profit margins brought by YOUNGOR's main business will be narrower.

What are the main investment performance of YOUNGOR in the past ten years? shares Influence?

In the 2007-2014 year, YOUNGOR sold the profits and losses of other listed companies' stock (more than 1 million yuan). Taking a single annual profit or loss amount of 1 million yuan as a division, then in 2007 -2014, 60 of the securities that had a significant impact on YOUNGOR's investment gains and losses were. Among them, 39 securities accumulated a net profit in 8 years, including a warrant and a H share; 21 securities accumulated a net loss. Profits and losses were added together, and 60 securities contributed more than 10 billion yuan to YOUNGOR's profits in 8 years.

In the past 10 years, the earnings per share of YOUNGOR deducted from non recurring gains and losses were 8 years less than the earnings before deduction. However, it achieved a relatively stable dividend. YOUNGOR earnings per share, earnings per share excluding non recurring gains and losses and changes in share dividends. Data source: Wind information, as shown above, if there is no support for investment income, since 2007, YOUNGOR's main business revenue is only enough to issue dividends, but it can not retain profits for further expansion of enterprises.

In 2017, a quarterly report showed that YOUNGOR's net profit was 1 billion 260 million yuan, a decrease of 48.5% over the same period last year, and its operating income was 3 billion 390 million yuan, a decrease of 38.9% over the same period last year. The basic earnings per share were 0.493 yuan, down 55.1% from the same period last year. YOUNGOR has long been regarded as a model of successful spanformation of traditional industries, though investment business has repeatedly triggered investors' discussions on risks and performance persistence. If these two tests are passed, it will help to dispel some investors. Investment business Doubts.

With the further shrinkage of the domestic garment market, the impact of YOUNGOR shirts and Western style clothing business is expected to continue. At the same time, China's real estate industry has slowed down. An important test for YOUNGOR is whether it can smooth the impact of the slowdown in clothing and real estate business if it continues to rely on investment returns from the stock market. In addition, the company's investment in the two tier market may also need to be diversified rather than relying on CITIC Securities or a few stocks.

For more information, please pay attention to the world clothing shoes and hats net report.