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"Feelings"
There are 100 Hamlets in the eyes of 100 people. The clothing industry cannot be unified. Behind each clothing brand concept, it conveys a kind of scene and a kind of situation. A kind of personality, a kind of demand or a kind of culture, only sports brands occupy a relatively high market concentration and a relatively long duration, which is why Anta can command a substantial premium.
The apparel industry is an extremely difficult industry, and there is no reason why the market has abandoned apparel brands. Changes are too fast, sustainability is too short, reliance is too much on management ability and entrepreneur restraint, and inventory depreciation are all inherent flaws in the nature of the industry. However, the forest is big and there are always different birds. Products that I have personally experienced are too cheap. Depending on the target, or different positioning and conditions given by the times, there will be investment opportunities.
Listed companies are leaders in the industry, and there are many brands that I haven’t looked at but don’t need to look at. The conclusion is still that the competitive landscape is differentiated, which is beneficial to Biyinlefen and Jiangnan Buyi, and I have found a few that can. Once the price of the tracked target is right, you can make short- and medium-term investments.
The following are statistics sorted by dividend yield:
「Disu Fashion」
The business strategy is too weak. I don’t know if the founder’s mind is still on the company. From a long-term perspective, the brand power remains unexpanded. From a management perspective, he is absent-minded and unable to do a good job. .
There are 1,037 retail terminals, including 276 direct-operated terminals and 761 distribution terminals. It belongs to the same typical franchisee system as Jiangnan Buyi and is the opposite of Winner Fashion.
Strategically focus on fashion trends and always be a follower and explorer. This model is easy to break and difficult to start. The gross profit margin is 74.82%, which is the leader. The company's core focus is on the Zhongshu segment. Like Jiangnan Buyi, it will open stores in Wanda. During the economic downturn, the price drop of the Dashu brand will be more serious.
DA only increased by 7.8% year-on-year in 2022, and the number of sales pieces grew weakly on a low base. On the other hand, the four brands, except for the newly entered men's clothing, are all shrinking.
Disu Fashion is a competitor of Jiangnan Buyi in the same segment, but it is a notch behind in terms of flexibility and operational capabilities. It is more entangled in positioning and fashion, weakening operations. There are many efficiency-improving actions that Jiangnan has made long ago. The company The key words given are to try step by step.
Disu emphasizes fashion and trends, while Jiangnan emphasizes style. Investors have to make a decision on how to choose.
RA men’s clothing has 22 directly operated stores, with store sales of 2.12 million.
From the perspective of dividend rate, it has reached 71% in the past seven years, growth is weak, and the current PE is still on the high side.
「Jinhong Group」
The apparel industry is an industry with a high degree of marketization and fierce competition, especially the high-end fashion industry. The domestic high-end fashion market has a large space. Well-known domestic fashion companies have begun to take shape but there are no industry giants yet. Brand concentration is low. At the same time, it also faces competition from international luxury brands and foreign second-tier brands. The industry competition is fierce.
It mainly operates three brands: VGRASS, Teenie Weenie and Yuanxian. It is currently carrying out a series of actions such as channel reform and digital construction. There are many variables, it costs a lot, and it is unable to pay dividends all year round. The main brand only has 1 billion Revenue, after so many years, no secondary brand has been produced. The founder has thought about capital.The speech is something I personally cannot agree with.
The main brand VGRASS accounts for 20% of the revenue, has grown by 22% in 7 years, even surpassed the CPI, and its development has reached its peak.
TW’s revenue accounts for 80%, doubling in 7 years, with an annual growth rate of 10%. It cannot keep up with Baoxiniao and Baoniao, which shows that the brand power is the same. After the acquisition, goodwill of 1.825 billion was generated, accounting for 54% of the net assets, which is an exaggeration.
College style, similar to E-LAND, may have been very popular in the previous era. When China’s culture became more confident, its admiration for foreigners lost its envious vision and encouragement. On the contrary, Hanfu sales are getting better and better. , history has already given the answer to how far the European and American academic style can go.
Yuan Xianzhu makes high-end luxury customized Yunjin clothing. It is incubating, accounting for a small proportion, and has not been produced in 7 years.
The company's inventories and long-term debt account for a relatively high proportion, and have been excluded from the initial screening of the data.
The average store sales of directly-operated stores are 2.48 million, and online revenue accounts for 38.4%. Among them, VGRASS store sales were 3.89 million, and TW store sales were 1.76 million.
「日波 Fashion」
There has been no growth in 10 years, and the sunset is on the horizon. In this situation, the dividend rate is still maintained at 30%. I guess I want to pull Sunset to raise more money. Be careful not to be deceived. The development strategy announced by the company makes me feel that I have given up on myself. Once the transformation to new energy was rejected, the major shareholders stopped playing, and the small shareholders still joined in the fun.
With a turnover of 1.027 billion, 2.91 million pieces were sold, with an average price of 352 RMB. Online sales accounted for 24%. The number of stores continues to decrease. Taking advantage of the last afterglow of the brand, grab another handful of wool. Maybe that's all it can do, and finally disappear silently.
「Anzheng Fashion」
For Anzheng Fashion, 2023 is a year of hope and frustration, adjustment and accumulation of strength. It is a year when the chairman returns to the front line of operation and management and takes the helm of organizational change. , is a year when the backbone forces return again and the entrepreneurial spirit flourishes. It is also a year when the company builds consensus on growth and mechanism-driven development.
Writing the annual report like this is to directly reject people thousands of miles away. Although the chairman's letter is quite sincere and the business efforts are clearly visible on the paper, it is not easy to reverse the predicament, and the strategic path is even more complicated. Makes me seriously question the company's true intentions.
The business measures that the company is preparing to carry out are routines that have been used by competitors for many years. Coupled with the current economic downturn and competitive landscape, it is not easy for even big international brands to do well. What's more, it is a 3-4 line mid-to-high-end Hanfu that has not grown in 10 years and is highly competitive. It is seriously doubtful how much brand power and customer recognition it has left.
JUZUI Jiuzi brand focuses on the needs of consumers in all life scenarios, improves the overall quality and price of products, and gradually expands home wear series, sportswear series, jewelry series, washing and care series, etc., with a turnover of 1 billion If you want to expand the circle like this, and you are fighting while you are injured, how can you win?
Annakro brand positioning is based on the development model of international first-line fast fashion brands. ZARA is not only playing fast fashion, but also supply chain capabilities and management and operation capabilities, which are by no means developed overnight. URBAN's dedicated attempts have not been successful. Under such circumstances, how can the company get the funds and resources to allocate according to the necessary path?
My brother was listed in 2017, but surrendered within 7 years. The stock price fell by 88% from the peak of listing, and has never risen. How can this make shareholders feel embarrassed? If time were not precious, I would really like to gossip and see what you have done. In an era when opportunities are becoming fewer and fewer, Dad Juan prefers to choose a career and start from the management level, which has a higher probability of winning.
The apparel sector has grown by 27% in 10 years. It is another brand that cannot keep up with CPI and GDP. Online revenue accounts for 24%.
E-commerce agency operation has grown from 130 million in 2018 to 1.5 billion in 2020. It has been cut in half and discounted, with revenue of 670 million. An industry without barriers is not as good as branded clothing.
The company currently has five self-owned fashion brands: "JUZUI Jiuzi", "IMM Yinmo", "MOISSAC", "ANZHENG Anzheng (men's clothing)" and "Annakro Annakou"; the company has The Chinese region jointly operates the Korean children's clothing brand "ALLO&LUGH".
Out of Shanghai Wabapin, it turns out that these franchises are the company’s main assets and are numerous in number.
But after all the calculations, the main brand Jiuzi actually accounts for the majority of the revenue of 930 million.
Average store revenue:
"Xinhe Shares"
The company's revenue in 2023 was 1.75 billion, with 399 directly-operated stores, an average store area of 176 square meters, an average store effect of 2.95 million, and a revenue share of 67%. There are 85 franchise stores, accounting for 6% of revenue. Online sales accounted for 26%, and Tmall’s return rate was 61%. Inventory turnover is 492 days, which is very scary.
There is still no growth in revenue for 7 years, and the ceiling is obvious. After listing 20 years ago, the dividend rate has been almost 100%. Unfortunately, in recent years, the four fees have been rising and the net profit has been declining.
The main card JORYA has a volume of 800 million, and the remaining sub-cards are all around 200 million.
At the end of 2023, strategic changes were made, which was another unstable factor.
「EGRIS」
The development history of large-scale international fashion industry groups shows that integrating brand resources on a global scale to establish multi-brand groups is the longest-lasting development method in the apparel industry one. The company's strategy is to take the acquisition path of LVMH and become a fashion group. The question is whether it has the external conditions, internal funds and operational capabilities. That is another story.
So, in addition to the main brand, the company's strategy is to buy, buy, buy, so whether it is goodwill or trademark rights, there is a huge risk of impairment, thus affecting the company's net profit.
On the surface, looking at the 2023 annual report, the revenue and store openings are very good. When it comes to the net profit, it is 3%, which is extremely stretched, and the whole middle is eaten up by the impairment of buying and selling.
Looking at different brands, the main brand has a volume of 1.07 billion, which is basically similar to various high-end Hanfu. The secondary brands are in the growth stage and have relatively healthy revenue. The only problem is that the secondary brands are all acquired and there is a risk of impairment.
The company has also accumulated overseas experience through acquisitions. However, affected by inflation in Europe and the United States, assets were impaired and revenue fell.
From the data, inventory turnover has been rising, sales expense ratio has been rising, resulting in ROE and net profit have been declining, and after listing in 2015, there were three additional issuances, and the market has been asking for money, but the return on investment is -10 %, you go and buy, buy, buy, I will pay you, you don’t want such a stock.
Whenever the company can play with these brands, it will not be too late to consider its peers.
「Rongmei Shares」
Internet retail brand, revenue in 2023 was 770 million, Hanfu sales accounted for 95%, gross profit was 39%, and net profit margin was 11%.
This kind of pure Internet brand without entity, the traffic entrance is restricted by the platform, it is difficult for online clothing to produce high-end and stickiness, which is beyond my knowledge, PASS.
" Jiaman Clothing"
For children's clothing brands, it is better to study the children's economy than to study the silver economy. After all, the number of the latter is increasing and their purchasing power is getting stronger and stronger. In other words, wouldn’t it be nice to invest in Feihe milk powder with a dividend yield of 7%? Most babies need to drink milk powder and the competition is low, but not all babies wear mid-to-high-end children's clothing and the competition is high.
The company is also aware of this problem and will continue to look for cooperation opportunities with new brands in 2024. This is also a declaration that I do not have a stable hilltop.
The company's financial statements are very clean. In 2023, it acquired Hush Puppies' full range of IP assets in mainland China, Hong Kong and Macao, forming intangible assets of 400 million.
There are 165 direct-operated stores, with an average area of 70 square meters, store sales of 1.33 million, and regular sales of 24,000; there are 374 franchise stores. Inventory turnover is 338 days.
A certain securities firm wrote in a research report about Haggis children's clothing, which is obviously wrong. The brand is authorized by Jiaman.
" Random Thoughts "
1. In the clothing industry, winners are those left behind, not created.
2. In the clothing industry, food depends entirely on the brand. If the brand is strong, the mountain is there; if the brand is weak, it is only a matter of time before it collapses.
3. In the Hanfu category, most people who are having a hard time are looking for Jiangnan Buyi and Winner Fashion, both of which are in the Hong Kong stock market. The best companies are actually the cheapest.
4. There are many companies selling mid-to-high-end children’s clothing, but it is quite difficult without a certain brand (HUSH) or customer base (Jiangnan) foundation.
5. Jiangnan Buyi’s growth last year was not necessarily due to its own strength, but could also be due to its rivals’ favor.
6. The research and correctness of the target depends on your own efforts. Whether you have the opportunity to buy and make money depends on God.
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Risk Warning: This article does not constitute any recommendation or advice on any information or opinions on securities, funds and other financial instruments involved. Readers are advised to fully understand the risk and return characteristics of securities, funds and other financial instruments and make their own decisions based on their own Make your own investment decisions based on the situation. The market is risky and you need to be cautious when investing.
