Good Trend Of Textile And Garment Sector, What Are The Leading Clothing Companies Doing?

In the context of the revival of the garment industry and the good performance of the capital market, the garment companies with the highest market value also hope that "the stronger the stronger".

This year, in the context of consumption upgrading and industry recovery, A share consumer stocks have shown strong overall performance, while the textile and garment sector has also performed well. According to statistics, as of mid June, the trend of textile and garment sector has won the Shanghai and Shenzhen 300 dynamic component index for four consecutive months. In shwan industry classification, its performance in consumer stocks is second only to the food and beverage sector.

In this trend, clothing enterprises' market value leading enterprises' dynamic operation deserves attention.

Up to now, the top five market capitalization companies in A share market are Hai Lan home (about 56 billion 200 million market capitalization), Semir apparel (market capitalization of 36 billion), YOUNGOR (market capitalization 29 billion 300 million), cross border pass (market capitalization of 25 billion 800 million) and Shanshan stock market (about 23 billion 900 million of market value).

Of these 5 enterprises, there are 3 men's clothing enterprises, namely, Hai Lan's home, YOUNGOR and Shanshan stock. The remaining two Semir costumes and cross border links can be classified as

Enterprise.

It can be seen that men's clothing and casual wear enterprises are larger in the clothing sector.

But looking closely at these enterprises, they are all double main businesses or many main businesses. Besides the men's wear, Hai Lan's home is also developing women's clothing business vigorously. Besides the leisure wear business, Semir clothing is also vigorously developing children's clothing business. It has become a company with children's clothing as its main business. YOUNGOR is carrying out the three carriages mode of "clothing + real estate + investment"; and for the two enterprises of cross border pass and Shanshan stock, in the continuous pformation process, clothing is no longer the main business of the company.

Revival of garment industry and capital market

In the context of good performance, these market capitalization clothing enterprises also hope that "the stronger the stronger", accelerate the pace of pformation and expansion.

Speed up the expansion and pformation of channels, and invest in mergers and acquisitions.

Hai Lan's home, Semir dress and YOUNGOR, the three clothing companies with the highest market value, have focused on the expansion and pformation of the channel stores in the business planning, improving the operational efficiency of the physical stores.

In addition, enterprises will find suitable investment targets and take a more active attitude and action in investment.

Semir costumes are also planning to spend more time in channel stores.

The company said it would adhere to the development direction of multiple brands and channels, expand e-commerce, shopping centers, outlets, street stores and department stores and other sales channels to diversify stores.

It will focus on stores and create different brand experiences at different levels of the market to create traffic portals.

In addition, the company also accelerated the pace of investment in mergers and acquisitions, during the year launched a number of children's clothing business investment and merger action.

The most recent merger action was that Semir clothing announced in May 28th that the company signed a cooperation framework agreement with all parties of Wenzhou jaino Garments Co., Ltd., with a registered capital of 45 million yuan and jointly invested in the establishment of a joint venture Zhejiang Sen Le dress limited company. After the establishment of the joint venture company, Sen Le dress will buy the registered trademark and some equipment of Wenzhou's brand "COCOTREE", so as to speed up its operation.

Data show that the "COCOTREE" brand was founded in 2002, is the domestic research and development of juvenile clothing brand, there are currently 143 stores.

YOUNGOR is also planning to expand and expand its efforts in channel stores.

The company said it plans to focus on self owned stores, speed up the layout of shopping centers, and speed up the decoration and cultivation of purchased stores so as to achieve chain operation.

In 2017, the company insisted on the strategy of big stores, and the new outlets were mainly collection shops. By the end of 2017, there were 118 net shops and 2356 outlets, with a total reduction of 198 compared with the beginning of the year, but the total business area was 394 thousand and 500 square meters, an increase of 13 thousand square meters compared with the beginning of the year.

In addition, the annual report shows that the single store revenue has increased, and the operating income of the stores that have been open for 12 months, 24 months or more than 36 months has increased by 13.49%, 11.66% and 13.72% respectively.

In terms of investment and mergers and acquisitions, YOUNGOR said it will continue to focus on big consumption, big finance and big health fields, seize opportunities for upgrading consumption, and promote investment business to pform from horizontal diversified financial investment to vertical specialization strategic investment, thus forming an investment system with strategic investment, financial investment and industrial investment as the direction.

The latest move is that the company announced in May 24th that in order to promote the pformation of real estate business to health, pension and healthy towns, the wholly owned subsidiary of YOUNGOR real estate holdings limited won the right to use state-owned construction land in the CX06-05-02g plot of Ji Shi Gang Town, Haishu District, Ningbo, at a price of 75 million 96 thousand and 400 yuan.

The plot covers an area of 121.989 mu, and the land uses are medical and health land. The investment intensity is not less than 21000 yuan per square meter, and the total investment of the project is not less than 1 billion 700 million yuan.

The pformation of main business has been growing rapidly, accelerating the investment and expansion of new main industries.

Different from Hai Lan's home, Semir dress and YOUNGOR, the two main businesses of cross border and Shanshan stock have been pformed into apparel retail enterprises, and have achieved a complete pformation in their main businesses. Their high market capitalization is largely supported by the bright performance of their new main businesses. They intend to further expand their pace on the new owners, and intend to be bigger and stronger in the new market.

As for the shares of Chinese fir, the latest move is to split the clothing business into the Hong Kong market.

In June 10th, Shanshan stock issued a notice that the company's controlling subsidiary sun Shanshan brand received the notification from the sponsor of Dongxing securities recently. Dongxing securities had received the letter from the Hongkong Stock Exchange on the same day. In principle, it agreed with the public offering of H shares issued by the Shan Shan brand and the application for listing on the main board, but before the listing of Shanshan brand, the final approval of the Hongkong stock exchange was still required.

Shanshan 2017 annual report shows that the company achieved 8 billion 271 million yuan in operating income during the period, an increase of 51.07% over the same period, and a net profit of 896 million yuan attributable to shareholders of listed companies, an increase of 171.42% over the same period last year.

Among them, the main business income of lithium battery materials business was 6 billion 40 million yuan, an increase of 47.37% over the same period last year, and the net profit attributable to shareholders of listed companies was 565 million yuan, an increase of 101.31% over the same period last year, mainly due to the positive electrode.

Business performance has increased sharply over the same period last year.

As for the main garment industry of Shanshan stock company, it achieved 667 million yuan in revenue, an increase of 27.23% over the same period last year, and realized a net profit of 49 million 374 thousand and 800 yuan attributable to shareholders of listed companies, an increase of 36.16% over the same period last year, mainly due to sales growth.

Whether it is the scale of revenue or net profit growth, compared with the current main business of Shanshan Group, the clothing business has ranked second.

But from the perspective of clothing business, Shanshan brand has also achieved a simultaneous increase in net revenue.

The company's spin off of clothing business to Hong Kong can be considered as a further focus on lithium battery and new energy business, and it will continue to promote the development of garment business.

The company said it plans to optimize and expand the clothing business sales and distribution network, set up self retailing stores in the prime locations of East, North and central China's frontiers, new frontiers and second tier cities, and set up SHANSHAN retail outlets in the new frontiers, second tier, three line and four line cities in southwest, northeast and northwest, and focus on promoting the two brands of FIRS and SHANSHAN as core brands.

Scanning the current operation and development plan of these garment enterprises listed on the A share market, we can see that apart from cross border and Shanshan shares, the two new main businesses are bright enterprises, Hai Lan's home, Semir.

The development of YOUNGOR and other enterprises has shown some consistency, accelerating the development of channel operation, investment and mergers and acquisitions, and intending to create "brand operation management" platform.

Can these enterprises have greater breakthroughs in terms of performance and market value? To a large extent, it depends on the multi brand and multi business operation and management capabilities of enterprises.

Behind the larger scale of market value, there will be more brands and businesses to support. How to manage it becomes particularly important, which determines the business development mode of an enterprise.

If ants want to evolve into elephants, their internal structure must change, otherwise their weight will break their legs.

This has some implications for the potential enterprises of other garment subdivision industries: whether it is to pform or stick to the main garment industry, it is necessary to form their core development capabilities and business models, and constantly pform and pform, so that they can go further and fly higher.