Adam Shares Sprint IPO Or Become A Shares "Underwear Second Shares"

Recently, the SFC website disclosed the prospectus of the ADM shares (Draft). Prospectus shows that AI shares are expected to raise funds of 761 million yuan, mainly for investment marketing network construction, information system construction, Vietnam production base and other projects.

If the AI shares are successfully listed, they will become the second "underwear stocks" of A shares, and A shares "underwear first share" will be listed as 002763.SZ in 2015.

Founded in 1993, its main business is the development, production and sales of high quality clothing and accessories, and is based on women's underwear. At present, there are many main brands such as admirers, admirers, love beauty, love children, Mu Lan and Lanka, etc. the products cover many categories such as thermal clothing, household clothes, home textiles and so on.

According to the data from the China Federation of Commerce and the China National Business Information Center on the offline retail channels, from 2017 to 2019, the three major brands of Adam, Lanka and Mr. Adam continued to rank first among the women's underwear, high-end underwear and men's underwear market.

It is important to note that the underwear industry has not developed well in the past two years. The secret of the underwear brand Vitoria has shown the difficulty of retaining. The performance of Chinese lingerie brand city beauty is also declining. Adam shares also experienced a two consecutive decline in net profit for two consecutive years. In the context of the overall growth of the industry and the severe impact of the epidemic on the apparel industry, underwear enterprises are facing unprecedented pressure.

According to the financial data disclosed, the operating income of Adam shares from 2017 to 2019 was 2 billion 947 million yuan, 3 billion 119 million yuan and 3 billion 318 million yuan respectively, and net profit from non recurring gains and losses was 519 million yuan, 382 million yuan and 313 million yuan respectively, and the profits in 2018 and 2019 respectively decreased 26.46% and 18.12% respectively.

By comparing the data of three years, we can see that since 2018, the net profit and profitability of Adam shares have been decreasing.

In this regard, Adam shares said that the decline in net profit was mainly due to the gradual upgrading and upgrading of its brand since 2018. The brand image and terminal image have been upgraded comprehensively. Meanwhile, the company's investment in brand promotion, channel construction, product development and other aspects has increased, so the company's period cost level has shown an upward trend in the reporting period, making the company's net profit level stage by stage. Slide downward.

According to the prospectus issued by Adam shares, the company is facing the problem of excessive inventory. Its book value in 2019 has reached 1 billion 130 million yuan, accounting for 32.05% of the company's total assets at the end of the year, accounting for 55.57% of the final liquid assets.

Insiders believe that, as one of the industry's top businesses, Adam shares, despite the decline in short-term performance, and many problems, but the overall ability to resist risks is stronger than most peers. Choosing IPO at this time is not very good, but smoothly listing can ease the pressure on its capital chain.