Hao Hit 500 Million Plus Vietnam'S Capacity, And Hosiery Industry Giant Jen Sheng Group Will Add 2300 New Equipment.

Zhejiang Jian Sheng group Limited by Share Ltd (hereinafter referred to as "Jian Sheng group") disclosed the 2020-2022 year development strategy plan today (December 23rd). Among them, "expanding the proportion of overseas capacity" has become an important content. According to the plan, Jian Sheng group plans to invest 500 million yuan in the next three years, 2000 new hosiery machines in Vietnam's Qinghua plant, and 330 new seamless looms in Xingan Vietnam factory. The new project selects the international advanced production equipment, matches with the company future informationization, the digitized production. To build up the "big data" Library and plan production system of JP production, from the angles of machine configuration, financial cost and capacity utilization, the optimal order allocation scheme is automatically assigned to various factories at home and abroad.

According to the insiders, although the overseas distribution of Jian Sheng group is relatively late, the overseas capacity is relatively high. In 2013, Jian Sheng group began to lay out Vietnam production base, and Vietnam accounted for 37% of its capacity in 2018. If Vietnam's capacity is running smoothly, the proportion of overseas capacity of Future Ltd will be further raised to about 50%. With the accelerated release of Vietnam's capacity, the jn group will further consolidate its capacity advantages and enjoy low dividend and low tax policy dividends to further enhance its profitability.

Up to now, Jian Sheng group owns five cotton socks production bases in Hangzhou, including Jen Sheng, Hangzhou Qiao Deng, Jiangshan Yi Deng, Jiangshan thinking and Jiangshan knitting, with a total capacity of nearly 200 million pairs in 2018. At the same time, Qiao Ting Ting has two seamless underwear production factories in Guizhou and Shaoxing Shangyu, and 23 million in 2018. In 2013, Jian Sheng group began planning in Vietnam, planning and constructing three production bases, with a total investment of about 150 million US dollars, and plans to build 250 million pairs of cotton socks, 18 million seamless knitted sportswear and industrial chain matching projects. At present, Vietnam's Haiphong and Vietnam Xingan factories have begun to operate effectively. In 2018, 110 million pairs of production capacity were achieved, and seamless underwear factories and Qinghua factories in Xingan, Vietnam were also in the process of preparing for construction. As of the first half of 2019, the Xingan factory's civil engineering has been completed, and the construction of Qinghua has begun construction, and it is expected to be put into production by the end of 2019.

Zhao Shuli, an analyst with Xingye securities, introduced the production base of the Vietnamese cotton socks in 2015. The company decided to continue to increase investment in Vietnam and speed up investment progress combined with the development of international trade. After that, Vietnam began to build a cotton socks production base in Vietnam, and built spandex, rubber cord accessories production plant and printing and dyeing factory in Xingan, Vietnam. The layout of the industrial chain is perfect, and the release of production capacity promotes business revenue to grow rapidly.

Thanks to Vietnam's preferential tax policy and capacity increase, the actual income tax rate of the group has been decreasing year by year and profitability has been further strengthened. According to Vietnam's Haiphong economic zone policy, Vietnam's kin Sheng company can enjoy a four year tax exemption policy of nine yuan and half a year from its profit making year. At present, it is exempt from corporate income tax for the third year of profit making. With the increasing proportion of Vietnam's capacity, the company's actual income tax rate has decreased year by year, only 11.97% in 2018, greatly improving the company's profitability.

It is reported that Jian Sheng group has built three production bases in Vietnam. At present, the two major production bases of Haiphong and Xingan have been put into operation, and the chemical industrial park project is still under construction. Vietnam's coastal defense is mainly the production base for cotton socks. At the same time, spandex and rubber cord production plants have been built. In 2018, 110 million pairs of cotton socks were produced. Vietnam's Xingan now mainly produces excipients and dyed products. As of the first half of 2019, the construction work of 18 million seamless underwear projects has been completed, and it is expected to be put into operation at the end of the year. The annual output of 90 million pairs of cotton socks in Vietnam's Qinghua Industrial Park is also being accelerated, and it is expected to be successfully put into operation at the end of 2019.

Zhao Shuli believes that in 2015, the production base of the jn Sheng group was formally put into operation. Then, with the acceleration of investment and construction, Vietnam's capacity continued to grow rapidly. In 2018, Vietnam's coastal defense production base had 110 million pairs of cotton stockings, and its actual output exceeded 100 million pairs, representing an increase of 40% in output compared with about 70000000 pairs in 2017, and Vietnam accounted for 37.27% of the total output. At the same time, Vietnam's Qinghua Industrial Park's annual production of 90 million pairs of cotton socks is also in the process of intense preparation. It is expected that in 2019, Vietnam will achieve an annual output target of 150 million pairs of cotton socks. In terms of seamless underwear, the company has also launched the Vietnam layout. It is expected that by the end of 2019, Vietnam's Xingan annual production of 18 million seamless underwear projects will be put into operation. The accelerated release of Vietnam's capacity will drive the company's performance to maintain rapid growth.

In Zhao Shuli's view, the group will have to control domestic capacity investment in the future, focus on promoting domestic capacity integration, and improve the overall efficiency by building smart factories and industrial parks. At present, there are two major projects under construction: (1) Hangzhou smart factory: in 2016, the company began to invest in the construction of 100 million pairs of high-grade cotton socks and smart factory relocation project, which was put into operation in November 2018. The first 200 sets of hosiery machines have been formally launched. In 2019, the production lines of Hangzhou Jen Sheng company and Hangzhou Qiao Deng knitting company will be relocated to smart factories and other bases in 2019. (2) Jiangshan Jiangsheng Industrial Park: in December 2015, the company announced that it would invest 500 million yuan to build an annual output of 100 million pairs of high-grade cotton socks, 1300 tons of spandex rubber line intelligent factory relocation project. At present, the project has been completed and put into operation. The production capacity of the original Jiangshan Si Jin and Yi Deng factories has been transferred to the Jen Sheng Industrial Park. It is estimated that in June 2019, part of the production capacity of Jiangshan knitting will be integrated into the industrial park. With the integration stage of domestic production capacity, it is estimated that the output of domestic cotton socks will be further reduced to about 150 million in 2019. Vietnam, Vietnam spandex rubber factory began trial production in April 2017 and expanded again in April 2018, currently producing about 2000 tons of spandex rubber cord, and Vietnam printing and dyeing factory has entered the production stage at the beginning of 2017, and has now formed 4000 tons of yarn dyed products production capacity. The operation of the spandex rubber band and dyeing and printing plant in Vietnam has further improved the industrial chain matching of Vietnam's production base, solved the bottleneck of raw material supply in Vietnam, and greatly enhanced the competitiveness of the Vietnamese production base.

According to public information, Jian Sheng group was founded in 1993, mainly engaged in stocking industry for more than 20 years. It has accumulated rich production experience, has advanced equipment scale advantages, rich brand customer resources and strong and solid market advantages. The company mainly adopts the production mode of ODM and OEM to provide the manufacturing and OEM services of the hosiery industry for the world-renowned brands and retailers own brands. It was launched in January 2015, and bought the leading domestic seamless underwear enterprise in the 2017.

From the customers' level, Jian Sheng group has established a deep partnership with many famous international brands, forming four stable overseas markets: Europe, Japan, the United States and Oceania. The company's core customers include: sports brand PUMA, Decathlon, UA, Fila; casual wear brand Levi 's, TommyHilfiger, Lee; fast fashion brand UNIQLO, H&M; and professional socks manufacturer Stance, etc.

According to the financial report, in the first three quarters of 2019, jn group realized its operating income of 1 billion 312 million yuan, an increase of 14.64% over the same period last year, and the net profit attributable to shareholders of listed companies was 228 million yuan, an increase of 31.04% over the same period last year. The third quarter achieved operating income of 485 million yuan, an increase of 25.04% over the same period, and the increase in revenue. In the three quarter, the net profit of returning to the parent company was 84 million yuan, up 32.65% over the same period last year.

Liu Chang, a Securities researcher in Dongxing, admitted that along with the growth of business revenue, the customer recognition degree of JSG group was relatively high, and the new customers were also developing continuously. In this case, the release rhythm of the production capacity would directly determine the growth of the company's revenue. According to the planning of Jian Sheng group, the company will complete the construction of the three production bases in Vietnam. By 2022, 250 million pairs of cotton socks and 18 million seamless knitted sportswear will be produced overseas. From the perspective of short-term deliverability, the company had about 300 million production capacity of cotton socks by the end of 2018, of which 110 million were Vietnam, with a total capacity of 150 million by the end of 2019. By the end of 2018, the company had about 23 million underwear production capacity, and Vietnam's 18 million production capacity is expected to be put into operation by the end of the year. As an excellent representative of textile manufacturing, the core competitiveness of Jonsson group lies in its advanced production technology and production management capability.