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Good News Bird: Gross Profit Margin Higher &Nbsp; Enter The Fashion Sportswear Market.

2012/4/4 19:22:00 29

News Birds' Gross Profit Rate Sportswear

"The gross profit margin of the clothing industry is generally around 24%, but it is rare to see such a high profit margin as a wedding bird." People in the industry are so critical.

Wedding bird

(002154.SZ).

Under the promotion of multiple factors such as cotton prices, news birds recently raised the price of their products by 5%~10%, which raised their gross profit margin in the three quarter of this year by 3.39 percentage points to 53.98%.

Among them, the gross profit margin of the company in the third quarter was 59.485%, the highest level in the single season since 2006, up 7.26 percentage points over the same period.

In addition, the company expects annual growth of 10%~40%. GF believes that the fourth quarter is the company's traditional sales season, optimistic about the future development of the company, given 30 times in 2011.

The target price is 35 yuan to maintain the "buy" rating. As of November 19th, the company's stock price was 30.25 yuan.

Recently, the most popular concern of news birds is to enter the fashionable sports apparel market that has never been touched before.

In November 17th, the board of directors of the wedding bird passed the motion to increase the capital of Shanghai bill Road Fashion Co., Ltd. It is understood that Shanghai was founded in October 22, 2010, with a registered capital of 100 thousand yuan, which covers sales of clothing, apparel, clothing, leather shoes and leather products. After the capital increase, the registered capital of bill rose increased to 30 million yuan, and the reported bird invested 15 million 300 thousand yuan, accounting for 51% of the total registered capital of the company.

"Peter Lu is mainly engaged in the production and sale of low-end market sportswear, this investment will help us expand the original product category." The company said.

Although the company's attitude is more optimistic, many market participants are cautious about this "test water" attitude. It is understood that the company has been operating brand clothing, fashion sportswear for the company, it can be described as a new market area, lack of experience.

In addition, the domestic fashion sportswear market also has the characteristics of low investment, quick results and low trade barriers, which is characterized by serious homogenization and fierce competition. The company also admits that if this business can not be successfully opened, it can foresee a negative impact on its performance.

"Before the company sold mainly men's clothing, now to do sports clothing, this market competition is particularly fierce, it should be said that the risk is quite large." The analysts said.

Lin Jianze, a researcher at Zhejiang Merchants Securities, has different opinions. He believes that stepping into the fashion sports series is another practice of the company's multi brand strategy. Investing in the market will help the company expand its original product categories, meet the needs of different consumer groups and share the rapid growth of the sports apparel industry.

"Although there are risks in change, there is a greater risk of change." He summed it up.

In fact, from the past performance, the performance of the birds is quite good. The first three quarters of 2010 achieved operating income of 893 million yuan, an increase of 26.44% over the same period last year, operating profit of 186 million yuan, an increase of 59.38% over the same period last year, and the net profit attributable to shareholders of listed companies was 160 million yuan, up 56.29% over the same period last year.

Three quarterly reports show that, due to the early delivery of some products in the autumn and winter, the company's revenue growth in the third quarter exceeded the median revenue growth. The main reason for the third quarter earnings growth over the income growth was a sharp rise in gross profit margin and a fall in management fees and financial cost rates.

Lin Jian believes that due to the early delivery of some products, the company's net profit in the first three quarters grew faster, and the performance of the whole year was reflected in the third quarter. Therefore, the fourth quarter performance of the company will decline. It is estimated that the earnings per share will be about 0.30 yuan per year.

In addition, the expansion of channel expansion to the performance may become the main point of the company's future development. It is understood that the company will use the 780 million yuan raised, before June 2011, in 500 cities to choose 178 cities in some cities. Market analysts believe that the spread of new sales outlets will help the company to seize market share and enhance the company's future performance.