Why Is The "Nike Generation Factory" Repeatedly Valued?

According to the world clothing shoes and hats net, the largest market value in China. Clothes & Accessories Group Shenzhou International stock price has reached a new high, and its market value broke through HK $100 billion this morning, becoming the first clothing group to break through 100 billion in the market value. Despite some slight drop in the intraday market, it was recorded at HK $65.8 per share, but the cumulative growth in the past three months was about 28%.

The capital market continues to look good for the group. In August 17th, Shenzhou International stock price jumped 7.11% to 58 yuan per share. At the beginning of last month, the market value exceeded 95 billion Hong Kong dollars.

The company mainly produces knitted sports accessories, casual wear and underwear garments, including UNIQLO and Adidas. Nike As well as PUMA and other international customers. According to Bloomberg data, among the four important customers in Shenzhou International, Adidas's fast fashion UNIQLO parent company accounted for 21.2% of its revenue, 20% of its revenue from Nike and 19% of its revenue from Nike.

Shenzhou International customers include UNIQLO, Adidas Nike, PUMA and other international brands.

Although it is unknown, and is in the low profit garment processing industry, Shenzhou International performance has continued to grow, and its share price has also been staggering, with a return of 53 times in 8 years, becoming the highest investment return group in the apparel industry.

Since 2012, the company's market capitalization has exceeded 20 billion, and the P / E ratio has been more than 20 times. The market thinks that the company's ability to resist risks has increased a lot and its performance has been relatively stable. If the P / E ratio is 4 times the lowest, the market value of the company is only 11 billion 800 million, which is about 8 times that of the current market value. It can be seen that the rise in performance and the rise in market capitalization are due largely to the increase in P / E ratio.

As China's largest knitwear manufacturer and exporter, the group announced earlier that its performance in the first half of the year has again recorded strong growth, sales increased by 18.9% to 8 billion 264 million yuan compared with the same period last year, and net profit of shareholders increased 24.1% to 1 billion 799 million yuan over the same period last year. After the release of the performance, many large banks have already raised the target price.

During the period, the sales volume of Shenzhou International sports products accounted for about 66.8% of the total sales volume. Revenue from sports products sales increased by about 22.9% over the same period last year. Sales of leisure products accounted for about 24.9% of total sales. Revenue from leisure products sales increased by about 17.7% over the same period last year. Sales of underwear products account for about 7.5% of total sales. Sales from underwear products fell by about 5.3% over the same period last year.

Shenzhou International listed in Hongkong in November 24, 2005. The opening price is 2.7 yuan, with no surprise at 2.775 yuan. After a slight rush, the share price gradually dropped. In the 2008 financial turmoil, it reached a low point of 0.8 yuan in October 27, 2008, which has become the lowest price ever recorded. As financial turmoil gradually subsided, share prices began to pick up. More importantly, the company's income and profits, like sitting on a rocket, a hair and soaring.

Over the past ten years, the combined growth rate of Shenzhou International Income and net profit has reached 17% and 22% respectively. According to the report released by the group, in the 12 months ending last December, turnover increased by 19.46% to 15 billion 99 million yuan compared with last year, net profit surged 25.18% to 2 billion 948 million yuan, compared with last year, gross profit rose 27.55% to 4 billion 909 million yuan, and the gross profit margin was 32.5%, up 2% over last year.

Some analysts have pointed out that Shenzhou International high efficiency and low cost production mode is the main reason for its long-term strategic cooperation with Adidas, Nike, Puma and UNIQLO. It is reported that Shenzhou International supply volume has exceeded 70% of the total supply volume of Nike Flyknit shoe upper.

Shenzhou International Group was founded in 1989 by Chairman Ma Jianrong, President Guan Yunlin and Ma Renhe. It is an enterprise integrating weaving, dyeing, printing, embroidery, cutting and sewing four complete processes. It is also China's largest vertically integrated knitting garment foundry enterprise, and 2016 China's largest export enterprise of knitted garments.

The business scope of the group mainly includes all kinds of knitted apparel for domestic and foreign brand production sportswear, casual wear, underwear and so on. Like other OEM enterprises, it takes advantage of the advantages of no portals, and almost takes the entire knitting industry brand production in the industrial chain.

The steady growth of Shenzhou International's performance was mainly due to the global textile industry environment, vertically integrated production capacity and customer relationship management.

At present, the global textile industry is undergoing fourth shifts, shifting from the Yangtze River Delta and the Pearl River Delta region to the lower cost China and Southeast Asia. In 2016, Vietnam's textile exports amounted to 23% of China's textile exports. Shenzhou International initially benefited from the global textile industry shift. In recent years, in order to cater to the trend of industry turning to Southeast Asia, the group also set up factories in Vietnam and Kampuchea.

Shenzhou International's unique production mode is the key reason for its steady growth. It is reported that the group is in the garment production link as the OEM mode. In the fabric production process, according to the customer's design and functional requirements, we develop and manufacture corresponding fabrics and make garments. As a matter of fact, the profits generated by the foundry industry are rather thin, but Shenzhou International has taken the middle and lower reaches of the industrial chain, providing one-stop efficient service to customers, reducing procurement costs and improving the ability of quick response of the supply chain, thus obtaining a steady number of customers and improving the bargaining power and discourse power of the group.

More importantly, Shenzhou International has invested continuously in technological innovation, focusing mainly on product development and production efficiency, and has received more than 180 patents so far. Data show that the group's R & D investment is about 2% of the annual revenue, while the input in technological innovation has directly increased the gross profit margin of the group, and has also increased the output. Data show that the per capita output of the group increased by 10% in 2016.

Some analysts have pointed out that Shenzhou International high efficiency and low cost production mode is the main reason for its long-term strategic cooperation with Adidas, Nike, Puma and UNIQLO.

In fact, after introducing Nike customers, Shenzhou International has speeded up the growth rate to meet the needs of customers. Between 2006 and 2008, Shenzhou International adjusted the product mix to meet the needs of the 2008 Olympic Games, adjusted the product mix, increased the proportion of sports apparel with high added value, and accounted for over 50% of sportswear in 2009.

From 2009 to 2015, it is the key development stage of international sports brand in China. Shenzhou International has reached a stable and cooperative relationship with international brands during this period. In 2011, Nike delivered the Flyknit vamp production business to the supplier Fengtai, but due to technical reasons, the order was waiver, and Shenzhou International orders Flyknit. In 2012, Shenzhou International bought 2000 professional equipment at a time. At present, the supply volume of Shenzhou International has exceeded 75% of the total supply volume of Nike Flyknit vamp, and the gross profit rate of Flyknit shoe upper business is higher than the group average level. As the key technology of Nike in recent years, Flyknit is highly regarded. It is reported that Shenzhou International has built Flyknit special factory in Vietnam, and its capacity is expected to double after completion.

Since its development, Shenzhou International and international customers have been growing together, and have set up specialized factories for Nike and Adidas to develop partnerships from the upstream and downstream of the supply chain.

With the gradual expansion of the group's product market from Japan to Asia Pacific and European and American markets, analysts pointed out that Shenzhou International vertically integrated production line, diversified products, customers and markets can effectively reduce the group's business risks and enhance its overall competitiveness. What is worth noting is that Shenzhou International launched its own clothing brand Maxwin in 2010. It is regarded as the future UNIQLO. In order to speed up the overall layout of Maxwin, the group sold 49% of Maxwin shares to NetEase last year to enhance its strong data marketing cooperation with NetEase.

However, there are also people in the industry who have questioned whether the Shenzhou International Company, which has been the foundry business, has its own brand violation. In response, Ma Jianrong, chairman of the group, responded that when a traditional clothing enterprise has a certain production capacity, making the brand is a steady attempt, and Maxwin is still in the exploratory stage.

At present, the market share of the second ranking is Anta sports, a domestic sports equipment retailer, with a market value of about HK $88 billion. Since last year, the performance of Anta sports has been rising all the way. At present, Chao Hai Lan's home has become the largest apparel retailer in the market.

According to Anta sports released last month as of the end of the first half of June, net profit rose 28.53% to 1 billion 451 million yuan (the same below), sales rose 19.2% to 7 billion 323 million yuan, gross profit rose 25.92% to 3 billion 704 million yuan, gross profit margin increased 2.7% to 50.6%.

Since July 3rd this year, Anta sports shares have continued to rise. In July 3rd, its market capitalization exceeded HK $70 billion for the first time, and its share price rose 5.83% after last month's earnings.

Anta's home market, which has been overtaken by Anta, has performed well in its performance and share price. Its market value is currently about 41 billion 917 million yuan, and is relying on a larger store volume and ambition to penetrate China's young consumer market.

In the first half of this year, Hai Lan's home sales increased by 5.59% to 9 billion 253 million yuan, which was close to 10 billion, while net profit rose 5.77% to 1 billion 875 million yuan. The net profit attributable to shareholders of listed companies rose 5.77% to 1 billion 875 million yuan over the same period last year.

It is noteworthy that China's apparel processing and retail groups favored by the capital market are seeking transformation and upgrading. Shenzhou International, which is the foundry of the whole industry chain, not only improves production efficiency through further efforts, but also enriches its business types by building its own brand.

With the progress of production technology, Shenzhou International's OEM business is also upgrading. According to the latest news from foreign media, the Grabit start-ups invested by Nike 4 years ago have developed machines that use electrostatic adsorption force to control objects and assemble machines. The speed of the shoe making machine is 20 times that of ordinary workers. During a 8 hour shift, a machine can produce 600 pairs of Nike shoes under the control of one worker, especially producing the most difficult vamp.

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