Mousse Group Holdings Openly Recruited 200 Million Shares Of National Men'S Wear In Spring.

In May 15, 2019, the Chinese menswear brand GXG's parent company, mosang Group Holdings Limited, was open for sale at the HKEx. The new stock purchase time was up to 12 noon on May 20th. It is estimated that the listing code will be 1817.HK in May 27th.

The highest selling price of the group is HK $5.88, 500 shares per hand, and the admission fee is HK $2940.

According to the information disclosed in the prospectus, the Hongkong group sells 200 million shares in the world, including 20 million shares in the stock market and 180 million shares in the international market. The company's highest fund-raising is about HK $1 billion 176 million.

First, men's wear one: fashion men's wear online sales first

Founded in 2007, mousse group is a leading Chinese fashion menswear company. Its brand is mainly aimed at high-end customers who pursue fashion and pay attention to fashion.

Moshang Group operates a new retail platform, integrating offline retail outlets and online channels with the support of big data analysis. It focuses on providing customers with seamless integration of shopping experience and understanding of customer needs.

According to consulting materials, the market share of China's fashion men's clothing market in 2018 accounted for about 21% of the total men's clothing market, accounting for about 7.5% of the clothing market.

In terms of total retail income, Mu Shang occupies about 3.3% of China's fashion men's clothing market in 2018 and ranks second in China.

In line with total retail revenue, Mu Shang ranked first in China in 2018, with a total retail income of about 5.2% and online penetration of 36%.

This means that after the listing of mousse group in Hong Kong, it will become the first new retail menswear.

Moshang group adopts multi brand management strategy to create multi brand matrix.

The core brand portfolio of the company currently consists of two main categories, (I) GXG series: GXG, GXG jeans and gxg.kids brand, and (II) sportswear: Yatlas and 2XU brands, each with different design styles for different customers.

GXG is the core brand of Mu Shang Group. It has the longest history and the largest customer group in many brands of the company.

The target population of GXG is 25~35 year old urban elite who has certain income and taste. At present, there are FOR LIFE (daily money), FOR UP (tidal current), FOR MIX (Cooperation Fund), FOR ALL (introductory list) and so on.

According to the customer survey conducted by consulting, GXG was regarded as one of the most recognizable men's clothing brands in 2017, and its products were oriented towards shirts, coats and trousers.

Moshang group is a company that keeps pace with the times and adopts the new retail mode combining online and offline.

By the end of 2018, the company had 2250 retail outlets nationwide, including 720 self operated stores, 532 partnership shops and 998 outlets, and incorporated into Tmall three, WeChat vip.com and other three business platform.

New retail is the main trend of China's apparel industry. Moshang group is actively embracing the Internet and has become a leader in new retail integration.

As early as 2010, Mu Shang extended his business to online channels.

In 2010, the GXG brand set a record of breaking tens of millions of single day sales in the 3 months after Tmall launched the online eleven.

According to Tmall's public information, in the 2011-2018 years, GXG men's wear ranked the top three in men's clothing brand for eight consecutive years, ranking first in 2011, 2016 and 2018.

Last year, Tmall's double eleven, GXG exceeded UNIQLO as the highest sales menswear brand, and its 12 hour sales volume reached 335 million yuan, exceeding the total sales of double eleven in the previous year, leading the industry for ten consecutive years.

Moshang group seamlessly linked product browsing, picking and delivery options, locating potential customers in all channels, providing customized coupons to customers, and achieving closed loop marketing. Besides, the company also has an exclusive online design team to upgrade consumer online shopping experience.

On the basis of online and offline integrated sales, Mu Shang Group uses big data to realize the pformation of supply chain, and improves the efficiency of inventory management, supply chain management, product selection and logistics.

In addition, moshang group adopts a flexible and innovative marketing strategy to create highly active fans.

Data show that as of the end of December 2018, the mosang group has about 11 million 200 thousand members.

Two, financial analysis: 2018 revenue of 3 billion 790 million yuan, the proportion of online sales increased year by year.

In the new retail business model combined with multi brand strategy and online line, mousse group has achieved steady growth in revenue and profit.

According to the prospectus, in the 2016-2018 year, the revenue of moshang group was about 3 billion 18 million, 3 billion 510 million and 3 billion 787 million yuan respectively, with a compound annual growth rate of about 12%.

In the 2016-2018 year, the adjusted net profit of the company was about 391 million, 451 million and 483 million yuan respectively, with a compound annual growth rate of 11.1%.

In the past 2016-2018 years, the gross profit of the company was 162 million, 190 million and 200 million yuan respectively, with gross margins of 53.6%, 54.1% and 53.7%. The gross profit margin remained stable and gross profit grew steadily.

By the end of December 31, 2018, GXG had cash and cash equivalents of 650 million yuan, with sufficient capital and low debt pressure, and the overall financial situation was good.

From the point of view of the company's revenue structure, GXG brand is the main source of income for mu Shang Group. In 2018, the GXG brand contributed 2 billion 500 million yuan of revenue to the group, accounting for 66.1% of the total revenue.

With the rise of new retail, the way of traditional clothing management is being impacted by the electricity supplier, digital media and social app. In recent years, Mu Shang is rapidly increasing the proportion of online channel sales.

In 2018, the sales of the online channel of Mu Shang Group accounted for 35.7%.

Although the offline channel is still the main battlefield of sales, the proportion of online channel sales increased from 23.7% in 2016 to 35.7% in 2018, showing a trend of increasing year by year.

Moussing online penetration reached 36% of the country's highest.

In line with total retail revenue, the company ranked first in China in 2018, with a total retail revenue of about 5.2%. In 2018, the online penetration rate of garment retail revenue in China accounted for 21.5% of total retail revenue.

On the whole, Mu Shang's business development is good, income diversification, GXG profitability.

In addition, the rapid growth of the company's online channels has brought dividends, and the main business efficiency has been increasing year by year.

In particular, Mu Shang actively promoted the brand of sports brand and children's clothing, which provided the reason and potential for the growth of company's performance.

Three, industry analysis: Men's clothing market will have huge room for future growth.

China's rapid economic growth, the rise of China's middle class, the increasing consumption of consumers, and China's online merchandise sales continue to improve, the clothing market is booming.

The retail revenue generated by China's clothing market increased from 1 trillion and 410 billion yuan in 2014 to 2 trillion and 310 billion yuan in 2018, with a compound annual growth rate of 13.1%.

With the further enhancement of consumer spending power and the diversification of clothing brands, online shopping clothing is becoming more and more convenient. The retail revenue of China's clothing market is expected to reach 4 trillion and 20 billion yuan in 2023.

According to moshang's prospectus, the market share of China's fashion men's clothing market in 2018 accounted for about 21% of the total men's clothing market, accounting for about 7.5% of the clothing market.

It is worth noting that fashion men's wear is the fastest growing part of China's men's wear market.

In the 2014-2018 years, the retail income of men's fashion clothes increased from 94 billion yuan to 170 billion yuan, and the compound annual growth rate was 16.5%.

Among all the distribution channels of China's fashion men's clothing, the online platform is the fastest growing channel, with a compound annual growth rate of 29.9% between 2014 and 2018.

In line with total retail revenue, Mu Shang ranked first in China in 2018, with a total retail income of about 5.2% and online penetration of 36%.

Data show that in the next 2018-2023 years, the annual compound growth rate of the online platform will reach 21.6%, higher than other channels, which means that the highest penetration rate on the Internet is the fastest growing track for Chinese fashion men's clothing, which is the biggest beneficiary of online platform growth.

Mousse holdings holding the public offering of national men's wear is coming.

The market concentration of Chinese fashion men's clothing is very low at present.

In 2018, the market share of the five largest companies in China's fashion men's wear industry was only 14.4%.

The mochan group has a leading position in highly competitive Chinese fashion men's wear market.

Data show that in terms of total retail revenue, Mu Shang in 2018 in China fashion men's market share of about 3.3%, ranking second in the country.

China's fashion men's wear market has large incremental space, and Mu has the ability of design innovation and management, and has established a good brand image. It is a leading brand that occupies the minds of consumers. Because of the higher viscosity of menswear brand, the concentration degree is easy to improve steadily after the establishment of brand status.

Therefore, under the development strategy of online and offline channels, the future of mousse is expected to continue to benefit from the growth of the industry.

Four, future prospects

Some foreign men's clothing brands, such as Polo, HugoBoss, Canali and Levis, have been well known all over the world.

The development of men's clothing in China is later than that in Europe and America, but its international competitiveness is weak. In recent years, Hai Lan's home, YOUNGOR (600177), Shan Shan, Mu Shang's GXG and other local brands are constantly emerging. Some brands are highly regarded, and they are expected to rise in the future to become international national men's wear brands.

Mosang group has been cultivating in the men's wear brand market for 12 years, and has made remarkable achievements. Among them, GXG is already one of the most famous fashion men's brands in China.

Looking ahead, the group will further consolidate its leading position in the industry, and will also expand data analysis and integrate online and offline members to enhance consumer experience and brand awareness.

The prospectus shows that the main purpose of the company's fundraising is: 1) about 45% is used to repay the company's existing debt and reduce its financial expenses; 2) about 15% is used to expand the company's brand and product mix through the acquisition of brand acquisition or strategic alliance; 3) about 10% of the company's offline retail outlets are upgraded to intelligent stores; 4) about 20% for the establishment of advanced intelligent logistics centers; 5) about 10% for working capital and other general corporate purposes of the allocation company.

Entering the 2019, whether it is from information technology, inventory or supply chain, the new retail mode is redefining the structure and business mode of the industry, and is stimulating potential demand.

With the expansion of the retail network, the optimization of channel combination and the growth of multi brand driven performance, the company will have considerable room for imagination in the future.

The selling price of the group is HK $4.68 to HK $5.88, with a total share capital of 950 million shares.

The total market value of the company is HK $5 billion 586 million at the highest offer price of HK $5.88.

In 2018, the adjusted net profit of the company was about 483 million yuan, which was converted to HK $1 =0.876. The adjusted net profit of the company in 2018 was about HK $551 million, or PE of 8.1-10.1.

Last year's economic downturn led to the downturn in the clothing market, the main men's clothing industry company after a round of valuation down, is at a historical low, the average PE of the industry is about 10 times, of which Hai Lan's home, Taiping bird (603877), China's lon's price earnings ratio are more than 10 times.

This year's economic recovery, the overall valuation of the industry is expected to be repaired.

Compared with peers, the price earnings ratio of mosang group is at a low level in the industry, and the valuation itself has advantages.

More importantly, Mu Shang has the leading edge in the industry, and the value of the brand will increase after listing, and it is expected that the market will give a certain valuation premium.

Consumer stocks have always been a bull share concentration camp. In 2018, under the global macroeconomic downturn, the national brand Bosideng stock price increased by nearly 2 times. What is worth looking forward to is whether the industry leading national menswear enterprise mosang group will have the same surprise after listing.

Source: flush Finance