Jian Sheng Group Plans To Build Factories In Southeast Asia

According to the world clothing shoes and hat net, Zhejiang Jian Sheng group Limited by Share Ltd (hereinafter referred to as "Jian Sheng group") recently announced its 2017 performance forecast. It is estimated that the company's net profit in 2017 will be 135 million yuan -1.61 billion yuan, compared with 104 million yuan in the same period last year, an increase of 30%-55% over the same period last year.

The prediction is based on the following reasons:

(1) the main business has continued to release the capacity of the two major production bases of Vietnam and Jiangshan, and the number of customers and customer orders have increased significantly. The net profit deducted from non recurring gains and losses attributable to shareholders of the listed companies during the reporting period increased by about 15 million yuan over the same period last year.

(two) the impact of accounting treatment completed a major asset restructuring in the second half of 2017. The company injected 100% equity interest in the assets of Zhejiang Qiao Ting Ting dress limited company. The Zhejiang Qiao Ting Ting dress Co., Ltd., which was acquired by the merger, began to merge into the consolidated financial statements in August 2017, which improved the company's performance, resulting in a net profit of 30 million yuan excluding the non recurring gains and losses attributable to shareholders of the listed companies during the reporting period compared with the same period last year.

(three) the impact of non operating profit and loss on non operating profit and loss has no significant impact on the company's performance increase.

(four) other factors that affect the exchange rate gains and losses of the RMB appreciation in 2017 are larger, resulting in a net profit deduction of non recurring gains and losses in the reporting period attributable to shareholders of listed companies by about 15 million yuan over the same period last year.

The industry believes that, at the customer level, the expansion of the old customers and the development of new customers have become the main source to ensure the growth of the future performance of the group. At present, the group is mainly export oriented.

UA is estimated to be 5000-6000 UA sales in 2017.

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, Wacoal, SPANX, an Li Fang, CK and so on.

From the domestic point of view, Jian Sheng group plans to start building a domestic market in 2-3 years from 2017.

Wang Peng, a securities analyst at Zhejiang Merchants Group, said that the development of existing customers of Junsheng group has brought opportunities for its own growth. UNIQLO and Decathlon are now developing rapidly in the Chinese market.

For example, Decathlon currently has 243 stores in mainland China, and more than 1000 Decathlon in the world. By 2020, it is expected to have 500 layout in China and 1600 stores in the world. It is estimated that Decathlon sales will reach 1.6-1.7 billion in 2017 and increase by 20% annually. In addition, the group is also negotiating with domestic brands such as Anta, Lining, NetEase, Yan and ma.

In terms of capacity expansion, Jian Sheng group has two production bases in Shangyu and Guizhou and more than 300 looms in the country. The Future Ltd also considers the development of South America and Africa according to market needs.

Specifically, Shangyu has an annual capacity of about 16000000 units, and Guizhou has an annual capacity of about 6000000, with an overall annual capacity of about 20000000 and a capacity utilization rate of more than 95%; while abroad, the next step is to build a factory in Southeast Asia while taking root in Vietnam. It is estimated that the capacity of the company can reach 40 million in 3-4 years.

According to Wang Peng analysis, from the change of gross profit rate, the gross profit rate of conventional underwear is flat, the gross profit margin of underwear is steadily rising, and the gross profit rate of sports underwear and bra has decreased.

The reasons for the decline in gross profit margin of sports underwear and bra are, on the one hand, the structural adjustment of customer products, the rapid growth of low gross profit margins, and the increase in procurement cost control and the reduction of prices.

Among them, the low gross profit order of sports underwear comes mainly from Decathlon, and the low Maori order of bra comes mainly from UNIQLO.

Combined with the analysis of Qiao Ting Ting, Jian Sheng group and its OEM enterprises are mainly export oriented, and will focus on developing their own brands in the future. The acquisition of Joule Ting has both operational level synergy and performance level thickening for Jen Sheng group. In the future, while ensuring more abundant products, it also enables customers to cooperate with each other and bring more orders.

Market participants also believe that, as a global quality manufacturer of cotton socks, perfect industrial chain layout + strict quality control + capacity expansion + quality customer resources and other advantages, the main driving force to ensure the rapid growth of Jenn group's performance is built.

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