Why Does The Market Value Of The Garment Industry Shrink Collectively?

With the help of new rules for repurchase, more than 20 companies

Can enterprises maintain their value?

It seems that we hope to repurchase about 83000000 shares with 900 million yuan of funds to fight against the bottom price.

According to the world clothing and shoe net, in recent years, 600398.SH has quickly occupied the market share by virtue of "man's Wardrobe" and has entered Tencent's stock market. Now it is the highest market value in China's apparel industry with a market value of 38 billion 600 million.

Leaders.

But from the perspective of stock prices, in May 31, 2018, Hai Lan's family began to go down after pushing the company's share price to its highest point with a price of 14.27 yuan.

In the past six months, the share price of Hai Lan's home stock has fallen by more than 40% and its market value has shrunk by about 25 billion 900 million yuan, with a closing price of 8.48 yuan as of December 28, 2018.

In December 2018, Hai Lan's home issued a notice of repurchase shares.

However, apart from Hai Lan's home, more than 20 garment companies announced the share repurchase program since 2018.

Can this move enhance investor confidence in the company and build up the company's share price? Why does the market value of the garment industry shrink collectively?

Performance growth fatigue market value shrank by nearly 60%

In the month of 2018 1~9, Hai Lan's home was leading other enterprises in the apparel industry with a revenue of 13 billion yuan and a net profit of 2 billion 600 million yuan.

However, investors reported that the company's revenue growth in 2014 was 72.56% and 75.83%, and its performance began to decline sharply. In 2018 1-9, Hai Lan's revenue growth was only 4.53%.

In addition, the market value of many garment enterprises has shrunk to varying degrees in the past six months. Among them, Hai Lan's home and Semir clothing have become the garment enterprises with a market value of over 10 billion.

As far as the market value of Hai Lan home has shrunk, it has been affected by the overall market environment. This year, the Shanghai Composite Index has fallen by 24.26%, and the textile and clothing market has fallen by 32.04%.

Secondly, for a long time, the fatigue of the company's performance growth has hurt investors' confidence in their development.

Reporters combing data found that the decline of Hai Lan's performance growth seems to be related to the development of its main business sector and a lot of closes.

At present, the company has "Hai Lan home" (men's wear), "love rabbit" (women's wear), "San Keno" (professional wear group customization) and other brands, including men's wear, women's wear, children's wear, accessories and household.

In the first half of 2018, "Hai Lan home" menswear became the biggest brand of the company with revenue of about 8000000000 yuan.

2014 earnings report showed that the company's performance has shown a high growth attributable to "Hai Lan home" 49.58% of the revenue growth.

In the past 2015~2017 years, the performance of this sector has dropped sharply, closing 408, 241 and 505 respectively, and the growth rate was only 5.9% in the first half of 2018.

At the same time, the growth rate of Hai Lan's single store income has changed from 21% in 2015 to -9.5% and -1% in 2016 and 2017.

More than 20 garment enterprises on the way to buy back shares.

The result is slow down and stock prices down. The share repurchase of Hai Lan's home is reasonable.

At the end of November this year, the Shanghai and Shenzhen Stock Exchange issued the detailed rules for the repurchase of listed companies (Draft), which extended the scope of the repurchase of listed companies and allowed the listed companies to absorb and sell high.

At the same time, after the sharp adjustment of stock price in 2018, enterprises with sufficient capital account are also more motivated to maintain the value of the company and raise the share price by means of share repurchase with the help of the new policy.

As of December 26, 2018, A shares issued more than 900 share repurchase plans.

More than 20 companies in the apparel industry have bought shares.

Including the market attention of the sea LAN home, good news birds, Taiping bird, Semir costumes, Pathfinder, song and other brands.

Among them, Hai Lan's home will continue to buy shares for five years, and plans to repurchase 20% to 30% net profit in one year.

We compare the relevant data of share repurchase between the 6 garment enterprises.

It is easy to see that most of these companies buy back shares because of fluctuations in stock prices and low performance.

In the 1~9 month of 2018, the performance of the Pathfinder showed a negative growth, and the growth of revenue and net profit was -36.48% and -72.38% respectively.

According to the insiders, as the company was too optimistic about the development of the outdoor industry in 2017, the formulation of more radical procurement planning and sales expectations resulted in more purchases than actual sales demand, while the loss of its travel businesses and subsidiary companies affected the net profit of the company.

Chick runs fast and leads the race.

According to the statistics of the National Bureau of statistics, in November 2017 ~12, the income of textile and clothing owners' business grew only 1.9% or 1.1% over the same period last year, the lowest in nearly 18 years.

In 2018 1~9, clothing, footwear and hat textiles increased by 8.9% over the same period last year, an increase of 1.6% over the same period last year. In November 2018, clothing and footwear and textile products increased by 5.5% over the same period last month, and the textile and garment industry showed signs of recovery.

At the same time, the slowdown in garment market demand will also accelerate the survival of the fittest in the industry, and help the leading enterprises with a solid foundation and a clear scale advantage to further widen the gap with their competitors.

In recent years, the emerging brand designers are also emerging in an endless stream. It will present the pattern of "chicken running fast and leading the leading race". Market analysts say, "from the investment perspective, clothing belongs to high frequency consumer goods, the industry has a huge market space, and children's clothing and sports have great potential in the two subdivision fields. Children's clothing emphasizes quality and sports functions, and can form a strong brand premium and get more channel support."

In response to the concerns of the above investors, the researcher sent a telegram to Xu Qinghua, director general of Hai Lan's home, and sent a telegram to the company two days later. A man told the researcher, "we will not reply."

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