Youngor: Adjusting brand positioning to meet development opportunities

Since the listing, the company's annual growth rate of sales revenue and net profit has reached 29% and 23%, and the average rate of cash dividends has reached 50%. The huge return of equity investment will not only bring rich dividends to shareholders, but also provide a strong financial backing for the development of the company, resulting in greater profit returns.

In the course of the company's development, the company has always insisted on the main business of textile and clothing, and continues to invest in it. After implementing channel integration, flattening sales system, DRP logistics management system and continuous team training program, the company’s branded apparel revenue increased by approximately 15% in 2006, while its net profit growth exceeded 30%.

From the development history of international men's wear, the development space for men's formal wear is very broad. With the rise of China's economy and the strengthening of national self-confidence, Chinese people who are more active in the global political and economic arena want to wear Chinese brands. Youngor (11.99, -0.31, -2.52%) has become the biggest beneficiary of this historical opportunity.

The development experience of partner Marzotto and its acquired Hugo Boss brand has provided the company with more development ideas. The company will achieve self-breakthrough from brand positioning, marketing, design to operation management. With the pace of internationalization, the company’s branded clothing will be presented. Rapid growth.

If CITIC Securities (34.66, -0.01, -0.03%) and Ningbo Commercial Bank are accounted for using the equity method, the company's ESP for 2006-2008 will be adjusted to 0.53 yuan, 0.64 yuan, and 0.76 yuan, respectively, an increase of 66%, 21%, and 19% respectively. %, continue to maintain the rating, maintain the target price of 16.14 yuan

Equity investment into the operating structure, brand clothing is still the core

Recently, the company set up two wholly-owned subsidiaries to specialize in venture capital, equity investment and other businesses, with a registered capital of 200 million yuan respectively, marking the company's operating structure from "brand clothing as the core, real estate and logistics trade as two wings," adjusted to "With branded clothing as the core, real estate and equity investment are two wings." The circulation reform has given China's capital market tremendous opportunities for value discovery. The company has had extremely successful experience in IPO equity investment and FE Capital's financial strength. Participating in equity investment has taken a favorable turn.

The company will control the investment risk from the following aspects: First, the company's equity investment will aim at stabilizing the company's return. Currently, the main investment target is resources and technology leading companies, and PE valuation is low; secondly, the company adopts “follow-up tactics”. That is to say, following investment institutions such as domestic and foreign funded fund companies, etc., to participate in investment; furthermore, the proportion of equity held by the company held by the company to be invested will have a significant impact on it, and 1-2 directors will be sent to the board of the investee company for comprehensive Understand and master the invested company; finally, the company will hire professional managers and professional teams to take charge of this business, in order to better control risk. The success of the company's equity investment is inseparable from the company's adherence to investment principles, and it also lays the foundation for the future development of the business.

After adjusting the operating structure, textile and apparel are still the core business of the company. In the course of the company's development, the company has always insisted on the main business of textile and clothing, and continued to invest in it, bigger and stronger.

Repaying shareholders with high growth and high payouts

Since its listing in 1998, the company's performance has continued to grow. The compound annual growth rate of sales revenue and net profit has reached 29% and 23%, and the average cash distribution rate is as high as 50%.

The company's suits have been for 6 consecutive years. The shirts have maintained the market share of the domestic market for 11 consecutive years. The advantage of being ahead of the second place has continued to expand. Real estate has also become the first brand in Ningbo. The company shared the company's high growth with Gao Shixian and shareholders.

At present, the company’s equity investment has also been a great success. The investment income of CITIC Securities alone will not be less than RMB 5 billion, and the company’s charter stipulates that the annual cash distribution rate should not be less than 30%, so this part of the investment income company will also Share with shareholders.

Breakthrough in brand apparel

Rapid recovery of profits

After implementing the channel integration, flattening sales system, DRP logistics management system and continuous team training program, the company’s branded apparel sales revenue began to show significant growth. In 2006, the company’s branded apparel revenue increased by approximately 15%, while the increase in net profit was More than 30%.

In 2007, the company will pay more attention to the increase in sales revenue per unit square of branded apparel. With the relatively stable costs and costs in sales, the increase in revenue will bring about a more rapid increase in profits, which means that the marginal benefit will increase. According to our forecast, if the company’s clothing sales revenue grows by 15% annually for the next five years, cumulative sales revenue will increase by a factor of two after five years, and profits will increase by 2-3 times.

Adjust brand positioning, meet development opportunities

As the Youngor brand (including Golden Youngor and Green Youngor) covers high-, middle- and low-end products, it has created problems such as unclear brand positioning and restrictions on high-grade development. Currently, the company repositions the Youngor brand in entrepreneurial businessmen, government civil servants, and white-collar workers. , And brewing another launched a brand responsible for the low-end market, mature after exiting the low-end market, and Younger brand focus on the development of mid-to-high-end market, still using suits, shirts as the main, supplemented by leisure business series.

From the development history of international men's wear, men's dress brands are the easiest to develop into luxury brands. The current international men's dress brands are all luxury brands, such as Giorgio Armani, Gucci, Prada and Hugo Boss. The byproducts of leather goods, perfumes, jewelry, etc. can often create higher profit margins than clothing. Therefore, we believe that the development space for men's formal wear is very broad.

The rise of China’s economy has enabled more politicians and business people to become active on the world’s political and economic arena. Wearing a set of Chinese self-owned clothing is more representative of the nation’s self-confidence. Just as Chinese athletes took office to receive awards, they must wear Li Ning’s sportswear. same. Currently, Youngor's brand is the undisputed China men's dress brand, which is the biggest beneficiary of historical opportunities, in terms of market share, sales, and profit. The company's timely adjustment of Youngor's brand positioning is also somewhat forward-looking. .

At present, the company is recruiting elites from home and abroad in the fashion industry with great enthusiasm. In 2007, the company plans to improve its brand culture and marketing image. In 2008, it strived to achieve breakthroughs in the design process.