Can Daphne's Share Price Continue To Grow To Take Advantage Of This Opportunity To Turn Over?

Entering the August, Daphne's share price changed and declined, showing a multi day growth. In August 7th, it jumped 52.5%. At present, when Daphne's performance continues to fall, discounts, and stores become commonplace, does Daphne have a turning point when share prices increase?

According to data from Fu Road Post market, in August 7th, Ma Yunfeng bought 40% shares of cloud front and bought 3 million 350 thousand shares, while Oriental Fortune International bought 6 million 830 thousand shares, making Daphne's stock price grow sharply for a time. But a securities analyst told reporters that Daphne's momentary stock price movements can not reflect the company's operation, nor is Daphne's predicament mitigate the stock price growth in a few days. In addition, although Ma Yun shares can bring good news in the capital market, but before Daphne's own problem is solved, the positive situation seems unsustainable.

Recently, reporters visited various shopping malls in Beijing, found that Daphne stores opened a discount mode, part of the style discount only about 80 yuan, while the new products also participate in discount activities, and even stores began to clear up shop. Related store personnel told the China Commercial Daily reporter that at present, there has been a notice of dismantling, and the discount activities are also mainly based on the sale of inventory. Meanwhile, Beijing has completed stores that close stores. When asked if Daphne would withdraw from the Beijing area, the store staff told reporters that the specific circumstances were not clear, but the number of stores that had discounted and closed shop was quite small.

In addition, the Daphne store staff also told reporters that Daphne's discount activities did not exist before closing stores. Weekdays discount activities were also followed by waves. Although the discount sizes were different, the basic discount activities had been ongoing, mainly for clearing inventory. According to the financial report, the average inventory period of shops is 198 days, 194 days, 218 days, 201 days, 198 days and 198 days respectively in 2013-2018 years. Over 190 days of inventory turnover days, resulting in Daphne inventory is too high, discount sale is also forced to helplessness.

It is understood that Daphne established nearly 30 years, reached its peak in 2012, the total number of stores was close to 7000. After that, Daphne began to go downhill. In terms of performance, Daphne suffered the first loss in 2015, and the average annual loss of HK $668 million was from 2015 to 2017. In 2018, Daphne's deficit expanded to HK $7 billion 866 million.

In the meantime, Daphne tried to save its performance in various ways, including three ways to close stores, clean up inventories and expand new businesses. Annual reports show that in 2015-2017 years, Daphne closed 1000 stores on average, and by the end of 2018, there were only 2648 Daphne brand stores.

At present, the overall development of women's shoes industry is sluggish. Daphne's internal operation and management need to be optimized. In the company's worries and difficulties, Daphne does not seem to have a more effective solution to the plight in addition to discounts and closes. Whether in the eyes of the industry or in the minds of consumers, the image of Daphne's shoe king has long ceased to exist. A securities company analyst told reporters that although Hong Kong stocks did not withdraw from the market mechanism, but there are many Hong Kong stock enterprises are marginalized, stock prices have also been in a low position for a long time, although Daphne shares have picked up recently, but on the whole, Daphne wants to turn over and grow again is difficult.