Taipingniao'S Road To Capital Is Quite Bumpy, And The Opportunity Of The Tide Of The Country

As the latest listed company in the "six little dragons of Guochao", taipingniao (603877. SH) has a bumpy road of capital.
At the beginning of 2017, after four years of hard work, taipingniao finally realized its dream of listing. Who would have expected that the performance "changed face" so quickly.
From 2017 to 2019, the company's revenue growth slowed down, profits shrank, and a large number of stores were closed. The stock price fell below the issue price and reached a record low of 13.41 yuan / share at the end of August 2019.
However, with the end of the painful period of transformation, taipingniao's performance has returned to recovery, and its share price has also been rising. From 14.62 yuan / share at the end of July last year to 59.8 yuan / share in the middle of July this year, with a cumulative increase of more than 300%, it can be regarded as one of the best clothing stocks in a shares in recent years. By the end of July 29, taipingbird's share price was fixed at 50.73 yuan / share, with a market value of about 24.1 billion yuan.
However, we all know that fashion is a word that changes with each passing day. Consumers' preferences are dynamic and irregular. How should taipingniao grasp its future road?
"IPO for many years, I have lost my temper"
In 1984, Zhang Jiangping, a "youth of small town" in Ningbo, Zhejiang Province, went to the city to learn tailoring. With his love and courage, he learned the basic skills of sewing, such as drawing sample, measuring size, trimming and sewing, etc., in only half a year.
After that, he spent three years to become the marketing manager of the clothing factory, ranking second only to the boss and the boss's brother, with a monthly salary of about 200 yuan.
One time when he was shopping, Zhang Jiangping took a fancy to a 100 dollar washed cowboy. However, he could only stay away from his tight living expenses. When he looked at the boss who was roaring by in Santana, Zhang Jiangping was strongly stimulated.
After the Mid Autumn Festival in 1989, Zhang Jiangping started his own business with 2000 yuan of money supported by his father. At that time, the so-called entrepreneurship was actually just selling jeans by the overpass and underpass.
In the era of material shortage and poor supply, Zhang Jiangping still made the first pot of gold in his life by relying on the simple business philosophy of "what is easy to sell and sell". In 1992, Zhang Jiangping combined with his younger brother to set up a small garment factory with 6 sewing machines and 8 manual workers. One brother ran the market, the other took charge of production, and the other did what was popular.
After a period of exploration, Zhang Jiangping summed up the three magic weapons of "small batch, multi brand and new style". His products successfully entered more than ten local clothing stores, forming a powerful sales network and rapidly accumulating nearly one million funds.
Like many fashion industry leaders who are active in the capital market, Zhang Jiangping is also one of the pioneers in brand awareness. He registered the trademark of "taipingniao" in 1995.
At that time, a variety of men's formal wear brands were popular in the clothing market, and dozens of "men's wardrobes" such as shirt king, suit king and trousers King competed for each other. Zhang Jiangping drew on the experience of his investigation in Japan and explored a new way to make a small profit of more than 10 million.
In 2001, seeing the trend of men's casual wear flooding again, Zhang Jiangping decided to turn to women's clothing. He positioned the clothing as "18-23-year-old girls" and put on 10 new clothes every day. The purchasing power of girls is absolutely the strongest, and the sales volume of taipingniao in that year exceeded 1 billion.
The growth of enterprise scale stimulated Zhang Jiangping's desire for the capital market, especially langzi shares, a rising star, which made Zhang Jiangping's heart ripple.
In 2011, Taiping year officially launched the listing process. According to wind data, the revenue of taipingniao reached 1.78 billion yuan in that year, with a net profit of 92 million yuan. During this period, it survived two share reform, three-year standard period and three-year queuing period. It was not until January 2017 that taipingniao opened the market.
"IPO for many years, I have no temper." Zhang Jiangping, chairman of taipingniao, once said that the company had been listed for six years.
Node financial analysis shows that taipingniao has a long way to go public, and there are many reasons.
Since 2011, the growth rate of the secondary market of the whole clothing industry has declined, and the growth rate is relatively slow; Compared with men's wear, the homogenization competition of women's wear industry is more intense, the market concentration is too low, and the profitability is weak. In 2017, the net interest rate of taipingniao was only 6.34%, while the net interest rate of Hailan home was as high as 18.29%. All these made it difficult for women's wear enterprises to go public, and the number of successful enterprises was far less than that of men's clothing enterprises.
Fortunately, as the first clothing enterprise to land on the A-share main board market in 2017, taipingniao has a strong momentum. After the opening of trading, the share price rose by 44% and the market value exceeded 20 billion yuan.
　 Once suffered from the pains of transformation, the market value fell to the bottom
Looking at the development process of taipingniao, just like most clothing retail enterprises, it has also experienced three stages: rapid growth, slow performance and strategic transformation of youth. At the same time, with diversification, its brands have expanded to many fashion clothing and life brands, such as taipingbird men's wear, taipingniao women's wear, taipingniao children's clothing and leting.
Reflected in the data, from 2013 to 2015, the net profit attributable to taipingniao was 213 million yuan, 437 million yuan and 536 million yuan respectively, with a compound growth rate of nearly 60%. However, since 2016, both the growth rate of revenue and net profit showed signs of rapid decline, and in 2016, it was significantly decreased by 31.05% and 20.22%.
To this end, since 2016, Taiping bird has accelerated its approach to fashion and youth, including patronizing "Birdman Music Festival" and appearing in New York Fashion week for two consecutive years. It has built up the brand IP of "Taiping youth", and has jointly established "international Chinese style" with Coca Cola, Phoenix and Disney, which have set off the fashion circle. We have invited Qianxi, Wang Yibo, and Huang Zitao and many other traffic stars act as spokesmen
In short, in order to cater to the post-90s, 95s and other consumer groups, taipingniao has made a series of efforts.
However, product transformation is not achieved overnight, and companies often have to face the loss of old customers. Zhang Jiangping is well aware of this, "the new style of the product has impacted the old customers to a certain extent, and the new consumer groups may not be willing to patronize because of the lack of awareness of the brand transformation of taipingniao."
This led to the peace bird hesitated to move forward for three years, and its scale almost stagnated.
According to the financial report, from 2017 to 2019, the company's revenue increased from 7.142 billion yuan to 7.928 billion yuan, and the growth rate of revenue decreased from 12.99% to 2.8%; The attributable net profit increased from 456 million yuan to 552 million yuan, and the growth rate of attributable net profit decreased from 6.72% to - 3.5%; In 2019, 1012 stores were closed, a net decrease of 100 compared with that in 2018.
At the same time, superimposed on 2017 and 2018, the inventory falling price reserves accounted for 24.5% and 28.6% of the inventory balance at the end of the period, and its net interest rate dropped from a high of 9% in 2015 to a low of 6.3% in 2017.
The unsatisfactory performance was fed back to the capital market. The highlight of taipingniao's listing only lasted for a few months, and it soon sank to the bottom for a long time. When the market value was the lowest, it was only more than 6 billion yuan.
It is worth mentioning that during these three years of "labor pains", Zhang Jiangping brothers and Zexi of Xu Xiang, the former "first brother of private placement", were affiliated with Tibet Zetian Investment Development Co., Ltd. around Ningbo Zhongbai, they staged a battle for controlling shares.
Finally, the Zhang brothers gave up their controlling shares, and the two sides settled. However, Zhang Jiangping was warned and fined 1.2 million yuan by the CSRC for failing to report the excessive shareholding and buying and selling Ningbo Zhongbai within the limited transfer period.
How many possibilities are there for taipingniao when the transformation is effective and the inventory is under high pressure?
The transformation effect will be obvious in 2020.
By consolidating the strategic cooperation with tmall and other platforms, promoting the rapid growth of retail scale, giving full play to the role of advantageous brands, and timely closing off-line loss making stores, taipingniao's revenue in the first half of 2020 is growing positively, and its performance is better than that of the peers such as langzi, Desu fashion and Jinhong group, especially in the second quarter, the recovery of its performance exceeds the expectation, It was the highest growth rate of Q2 in the past five years, which promoted the company's share price to significantly outperform the market, once reaching the second highest point since 2019, corresponding to about 31 times of PE (TT m) and market value of about 20 billion. However, due to the failure of the online sales of double 11 in November, the company's stock price fell back.
Starting from 2021, with the annual report 2020 and the first quarter report of 2021 successively announced, its annual revenue and net profit attributable to it were 9.387 billion yuan and 713 million yuan, respectively, increasing by 18.41% and 29.24% year on year; In the single quarter, the revenue and attributable net profit were 2.67 billion yuan and 203 million yuan, with a significant increase of 93.1% and 2222.25% year-on-year; The external sector benefited from the fermentation of the "cotton incident" and the rise of the national tide. The capital stirred by the wind vigorously boosted its stock price, and reached a new high in early April, corresponding to about 37 times of PE (TT m) and 26.2 billion of market value.
The fund disclosed that as of June 30, there were 23 funds holding Taiping bird, a total of 21.6786 million shares, up 3% from the previous quarter; The market value of the shares was 1.157 billion yuan, an increase of 147 million yuan compared with the end of the last quarter, ranking behind 200 stocks in all funds.
The strong stock price trend has also created many cash out opportunities for Taiping bird's shareholders and executives.
According to node financial statistics, in the short period of more than three months since the end of April this year, Chen Hongchao and Weng Jianghong, directors and general managers of taipingniao, as well as Ningbo Penghao investment partnership and Ningbo hele Investment Co., Ltd., which hold more than 5% of shares, have reduced their holdings by about 26.09 million shares, accounting for 5.5% of the total shares of the company.
However, on the back of the improved performance and soaring share price, taipingniao still has to face two industrial problems: lack of inventory and originality.
According to the data, by the end of 2020, the net inventory value of taipingniao was close to 2.26 billion yuan, an increase of more than 400 million yuan compared with the end of 2019, with an increase of 21.67%, higher than the increase of revenue. The inventory turnover days of the company in recent three years are 208.77 days, 206.66 days and 192.9 days respectively, which is far lower than the fast fashion giants UNIQLO and Zara about 70 days, and the response speed is relatively slow.
Taipingniao's definition of "inventory" in its annual report is "mainly goods in stock". The book value of the inventory accounts for 96.37% of the closing inventory book value and 25.46% of the total assets. In other words, the Pacific bird squeezed a lot of commodities.
The company also said frankly that "in the future operating years, if it is difficult to realize inventory due to changes in market environment and intensified competition, it will still face greater pressure on inventory impairment and risk of falling price."
In addition, according to the 2020 annual report, taipingniao's accounts receivable exceeded 778 million, an increase of 24.11% over the end of 2019. Accounts payable exceeded 2 billion, an increase of 18.90% over the end of 2019. It shows that the company's capital is under pressure at both ends.
In view of the inventory pressure, taipingniao believes that this is mainly due to the broken link between the brand and the consumer. Therefore, the company started the digital transformation project of science and technology in 2020, hoping to realize data-driven digital operation and digital rational decision-making, and promote the overall operation efficiency.
However, as far as the status quo is concerned, this strategy has not achieved much effect. In the first quarter of 2021, the inventory scale of taipingniao is still high, reaching 2.149 billion yuan, an increase of 31% over the same period of last year.
The lack of original design power is also prominent in Taiping bird.
On July 16, visual artist Joshua vides accused the Pacific bird men's wear of producing and selling products bearing his name without authorization on his instagram.
Combing forward, taipingniao has been involved in plagiarism for many times.
For example, Harry Potter's joint brand has been revealed to "learn from" South Korean brand unalloyed, Dali Temple journal and Li cansen's co branding project are suspected of plagiarizing other people's works by videos and illustrations, and the selling styles are highly similar to a series of national brands such as Moussy, offwhite and a small number of minority brands.
Judging from the amount of R & D investment and sales investment, it seems that there are also traces to follow for taipingniao to encounter the above disturbance. In 2020, the company's R & D cost is 116 million yuan, and the sales cost is 3.273 billion yuan, which is 29 times of the R & D cost.
After more than 20 years of growth, in addition to striving to become more fashionable and more suitable for the taste of young people, today's taipingniao intends to test the internationalization of water.
On October 22 last year, the taipingbird Fashion Center opened for the 2020 Ningbo Fashion Festival. Zhang Jiangping revealed a big plan: "the market of fashion brands is very large, and the company dreams of becoming a 24-hour enterprise with global business."
From the perspective of capital market, taipingniao also needs internationalization to strengthen its stock price support. After all, the dynamic P / E ratio of nearly 30 times is much lower than that of 95.4 times of Longzi shares supported by Yimei, but it is higher than 18.5 times of gelicus and 15.87 times of local fashion, and higher than its median valuation of 24.46, which is already at a high level.