"Frontline Frontline" Parent Company Makes Masks 200 Million: Impulse Or Save Oneself?

During the special period, the approval process was speeded up in all aspects, and soon the business license was obtained, and the production line was being urgently prepared. In February 14th, the head of the Securities Department of 2.280,0.04,1.79% (002503.SZ) said to the China Times reporter.

He is the parent company of the "fashion frontline" of the famous casual wear brand. The company announced in February 11th that it intends to invest 200 million yuan in its own capital to invest in the establishment of a wholly owned subsidiary of Dongguan search special medical products Co., Ltd. On the 13 day, the wholly owned subsidiary was approved by lightning and obtained its business license. Business scope includes research and development, production and sale of medical masks, protective clothing and so on.

Under the epidemic, many textile and garment companies have rushed to produce medical materials such as respirators. However, unlike most companies, the search for performance has been directly upgraded to the height of the company's strategic position. "Future Ltd will implement the double driving development strategy of textile and garment industry and medical supplies industry, and continuously promote the development and growth of the company." Search for special express.

200 million of the "Mask" lightning was approved.

For consumers, the name may be a bit strange, but its brand of leisure apparel "fashion front" is widely known.

Search was founded in December 2005 in Dongguan, Guangdong province. It started with the fashion front dress brand and went public in Shenzhen Stock Exchange in 2010. The company's business mainly includes brand clothing operation, supply chain management, brand management and so on. Statistics show that through the combination of direct and franchising, the company has nearly 2000 brand fashion stores across the country.

Affected by the epidemic, the textile and garment industry has been greatly affected. Search for the relevant responsible person told reporters frankly, "trend frontline" stores and foundries part of the closure and shutdown, but the specific figures are difficult to statistics.

Meanwhile, demand for protective materials has increased sharply since the outbreak. Ou Xiaoli, director of the social development department of the national development and Reform Commission, said in February 11th that the demand for masks and other anti epidemic materials suddenly broke out, and no country could cope with such a sudden demand. There is a big gap between supply and demand at present in the world. He said that with the promotion of resumption of production and so on, the production of mask will gradually increase. At the same time, we also urge you not to hoard the mask.

In the February 11th announcement, he said that the investment is not only responsive to the call, but also in line with the company's overall development strategy, and is conducive to optimizing the company's industrial chain structure. "The medical device industry is a strategic emerging industry supported by the state. In the future, people's awareness of health protection is increasing, and the demand for medical devices and protective products is more intense. China's medical device industry is growing rapidly, and the potential of the project market space is huge." The company said.

At the same time, he also believes that some of the raw materials of the company's supply chain management business are raw materials for producing medical protective products and non-woven fabrics. This investment has the advantages of industrial resources and raw materials. In February 12th, the stock price of the search went up.

In February 13th, in search of special announcement again, Dongguan search special medical supplies Co., Ltd. has completed the relevant registration procedures, and obtained the Dongguan business license issued by the market supervision and Administration Bureau. The specific business scope includes R & D, production, sale and online sales: first class medical devices, second kinds of medical devices (medical masks, protective clothing, melted spray cloth, gauze, non absorbable surgical dressings), needled cotton, non-woven fabrics, fiber cotton (excluding medical devices), labor protection supplies, hygiene products, import and export of goods or technologies, etc.

Impulse or strategic self rescue?

The epidemic situation is still grim, which means that there is still a large demand for anti epidemic materials, and many enterprises have begun to switch production to epidemic prevention materials. According to the data from heaven eye, from January 1, 2020 to February 7th, the business scope of more than 3000 enterprises has added "mask, protective clothing, disinfectant, thermometer, medical device" and other businesses.

In the textile and garment industry listed companies, the development and production of anti epidemic materials include YOUNGOR (6.790,0.00,0.00%), red bean (3.950,0.00,0.00%), Xinlong holding (9.190,0.18,2.00%), starting shares (8.850,0.05,0.57%), and mercury home textiles (14.980,0.23,1.56%).

At the end of January, YOUNGOR announced publicly that it had decided to donate 10 million yuan to Ningbo medical, rescue workers and patients to assist in the treatment and prevention of the epidemic. In addition, YOUNGOR's R & D team is working hard to develop new masks for virus prevention and will be put into production immediately after successful R & D. However, the news did not appear in the letter of the listed company, and its share price plunged more than 8% in the first trading day after February 3rd.

In February 4th, Hong Kong shares disclosed changes in the scope of operation, adding "the first category of medical device production, the second category of medical device production". At the same time, the company also said that it will produce disposable medical protective clothing after obtaining the "emergency medical materials protective clothing and emergency mask for emergency use of Jiangsu province". The products will be subject to the unified allocation of the government and not to be sold externally. The above business is mainly to fulfill the social responsibility of listed companies, not to gain profits as the main purpose.

Unlike most of the companies, he has invested in the medical supplies industry as one of the company's development strategies. "China Times" reporter noted that on the interactive platform of the exchange, in search of special manager Dong's answer to the question of "impulsive or long-term preparations", investing in the 200 million layout of the medical supplies industry is the strategic layout of the company in the long run. Future Ltd will implement the double driving development strategy of the textile and garment industry and medical supplies industry, and continuously promote the development of the company. Such a wording undoubtedly means that the medical products industry is placed in the same position as the main business of the company.

In the future, with the increasing awareness of health protection, the demand for medical devices and protective products is more intense. The medical device industry is growing rapidly and the potential of the project market space is huge.

It is worth noting that this investment is not only a response to the impact of the epidemic, but also a self rescue. Flush (122.490,3.59,3.02%) iFinD data show that in the past two years, search for special performance continued to decline significantly. Net profit fell 39.72% in 2018, and net profit continued to decline 45.98% in the first three quarters of 2019. In addition, the company forecasts that its net profit will decline by 51% in 2019.

"First of all, I hope to be able to prepare medical companies and make contributions to the community." Search at the special securities department responsible person in a reporter asked, "whether the company looks forward to policy support". She also said that the company has been developing in the textile and garment industry for many years, and later entered the supply chain management, mainly for textile and clothing raw materials, which is equivalent to the extension of the front-line brand business. The textile and garment industry has the advantage of raw materials, such as non-woven raw materials companies, and now the establishment of medical supplies companies is also an extension of the company's business.