Net Profit Rate Of 20%, Stock Prices Rose 10 Times In The Past 100 Years, What Did The Home Textile Enterprises Do?

As a "representative factory",

Be careful

In the clothing brand listed company's giant Hai Lan's home, the net interest rate is only 18%; in addition, 17% of the songs, 17% of the brink and 11% of the wolves.

It's much lower than it.

In the companies we studied before, even the recognized value investment tycoons, GREE is only 15%, and the United States is only 7%. Even the hang Rui medicine, only 23%, is only 3 points higher than it is.

It's strange. Where does this high net interest rate come from?

Customers are all sports giants.

In addition, several major international sports brand giants, Nike, ADI, Puma, and

The giants, UNIQLO, are their customers.

Its name is Shenzhou International.

Over the past 10 years, it has risen more than 100 times, and its market value is HK $146 billion, ranking the first in the domestic garment industry.

Combing down, Shenzhou International development mainly experienced the following turning points:

1) focus on the costume foundry track, making the world leader.

2) layout upstream fabric processing, breakthrough in fabric technology;

3) in the low economic cycle, we must expand production capacity.

4) track pformation, from casual apparel to higher profit apparel OEM.

Shenzhou International adopts vertical integration mode, from fabric production, printing and dyeing to garment processing and other links.

Binding with important customers

Shenzhou International vertical integration mode, from yarn to cloth to clothing, can save the middle circulation time, so that the supply cycle from the original 2-3 months to 45 days, can also handle urgent orders, ensure 15-30 days delivery.

According to the USFIA survey, in recent years, brand names tend to choose suppliers of "fabric + OEM", the willingness to choose from 37% to 59%, while those who choose "fabric suppliers" and "OEM" separately fall from 93% to 68%.

It can be seen that the efficiency of "fabric + OEM" will prompt the production of garment industry to gradually pfer to the foundry factory with the ability of fabric research and development.

Under the automatic production mode, production technology, production efficiency and product qualification rate all depend on production equipment, that is, production capacity.

Shenzhou International's capacity expansion is also shifting to Southeast Asia's Kampuchea, Vietnam and other places. For example, the garment factory was established in Kampuchea in 2005, and was established in Vietnam in 2014 and 2015.

Factories and garment factories.

As we all know, Nike and Adidas are the two big rival giants in the sporting goods industry. In order to protect the trade secrets of both sides and avoid the production of homogeneous products, Shenzhou International has set up exclusive factories for Nike and Adidas in 2006 and 2007 respectively.

You see, considering the competition between the oligarchs and the construction of exclusive factories, such intimate actions are also aimed at deepening the binding of downstream clients.

How to make the stock price ten times a hundred times?

From the low point of 2008 to the present, Shenzhou International stock price has risen by more than 100 times, even if the Tencent is not at its best at the beginning of this year.

A considerable portion of this increase can be explained by valuation.

As mentioned above, the valuation of Shenzhou International is less than 3 times when it was low in 2008, but now it is 30 times, which is 10 times higher.

However, the promotion of valuation can be promoted by the fundamentals of the company.

From 2008 to 2018, only in 2010, the growth rate dropped significantly and the performance in 2012 declined slightly. Other years maintained a steady growth pace.

In 2008, the company's revenue was 4 billion 800 million. In 2018, it was expected to be close to 20 billion. In 2008, the company's profit was only 700 million, and 2018 profit was expected to reach 4 billion 400 million.

The company's profitability indicators are perfect.

How did such a basic plane do?

Shenzhou International has grasped the whole world.

The opportunity to pfer to China.

In 90s, China's political stability and reform and opening up were further deepened. With the demographic dividend, China naturally joined the world.

Industrial chain.

This became even more evident after 2005.

From 1974 to 2004, the development of the global garment industry has been driven by the quota system, and clothing production is distributed in countries with available quotas.

Since January 1, 2005, after the withdrawal of quotas among WTO members, market competition has dominated, and the structure and traditional competition pattern of garment industry have changed.

It is the direction for Shenzhou International to cut in very well.

When textile and garment production capacity was pferred to China, Shenzhou International mainly cut two pieces.

Two is sportswear.

In 1997, Shenzhou International seized UNIQLO, and made substantial progress in 2005 with Shenzhou, Nike, Adidas and PUMA.

In recent years, it has also cooperated with Anta, the biggest sports brand in China.

These two areas, one is the huge consumer group, the two is the high consumption frequency, the industry's ceiling is very high.

Third, after 2012, in the context of rising labor costs in China, Shenzhou International judged the situation and judged that the ancillary industrial facilities in China were not available in Southeast Asian countries, so it did not panic to move capacity out of China.

Shenzhou International has steadily laid out its overseas capacity on the one hand, and now has factories in Vietnam and Kampuchea. On the other hand, it will pfer domestic production capacity to the middle and high end by means of technology and capital.

At present, Shenzhou's main capacity is still in China, and its competitive advantage has not been weakened due to rising domestic labor costs.

On the contrary, the gross profit margin of Shenzhou has been increasing over the years, which reflects the continuous improvement of its competitive edge.

This is mainly the Shenzhou outstanding management, to ensure that customers provide high-quality products on time, so as to help it continuously win the order share of international famous brand customers.

At present, Nike based international brands are squeezing suppliers, which means greater market share for Shenzhou International, and the ceiling has not yet arrived.

And Shenzhou and domestic brands have begun to cooperate in recent years.

The growth is very fast.