Lenovo holding "latent"

Absrtact: Wine industry is depressed, coal mine huge loss, sell a ton of steel only earn a bottle of coke bleak atmosphere is shrouded in a number of industries, how to make money seems to become a part of the problem of enterprises. The performance of a proposed IPO company called Popular beauty is somewhat enviable. Its main business for the liquor industry downturn, coal mine huge loss, sell a ton of steel to earn a bottle of Coke ... Bleak atmosphere is shrouded in a number of industries, how to make money seems to be part of the problem of enterprises.




The performance of the
, a popular American IPO firm, is somewhat enviable. Its main business is "sell hairpin, disk hair", and by this achieved a comprehensive gross profit margin of 59.15%. Such profitability is comparable to the highway industry.





Lenovo will be the biggest winner of the popular US IPO. 6 years ago, Lenovo holdings of 52 million yuan, is expected to change back to 700 million yuan.





"Low threshold" is a double-edged sword. Popular beauty by the low cost of the threshold to achieve rapid expansion, at the same time it is to "be cottage" and distressed.





Female customers send high returns





"Haina Rivers", this sentence is very suitable for the Chinese stock market. For example, a company selling hairpins to women, "sharpening" is ready to go public.





recently, the Guangzhou popular Beauty Fashion Commercial Co., Ltd. (hereinafter referred to as "popular beauty"), issued a prospectus. The company, which has been established for less than 7 years, plans to impact the Shanghai board.





According to the prospectus, the popular beauty of the business model is extremely simple, and can even say "no technical content." The prospectus describes its main business as, "through the Product + service" mode of operation, for the purchase of fashion jewelry, cosmetics young women, to create the overall shape of the head, and long-term free hair design, plate hair, makeup and other services. In short, it is "you buy my product, I long for you to provide free service."





a hairpin, a bottle of cosmetics, plus a pair of hair makeup hands, combined is a "printing money machine." The prospectus shows that 2013, the average price of fashion jewelry is 31.32 yuan, and the cost is only 14.72 yuan, gross margin of up to 53.01%. Public reports say women between the ages of 20 and 35 are the main customer base.





A detail shows that the female customers to 100 yuan to 500 yuan between the jewelry interest is growing, and the less than 100 yuan jewelry lost interest. The former's gross margin is 3%-4% higher than the latter.





in view of the above trends, popular laudatory name, is to enhance the product price by strengthening the advertisement propaganda, the promotion shop image and so on means.





According to the prospectus, 2013, the popular U.S. sales of 7.4465 million jewelry, production and marketing rate of nearly 98%, total main business income of 441 million yuan. The prospectus also shows that at the end of last year there were 3,444 stores in popular beauty. On average, a single store sells 2,162 ornaments a year, or about 6 a day, with a single store earning 128,000 yuan per annum, or 351 yuan a day.





Lenovo holding "latent"





Popular beauty business income comes from two aspects: one is to 3,304 franchise stores wholesale products, collection royalties; the second is through the direct store-oriented customers.





How to promote female consumers, popular beauty companies and its stores have their own "secrets." It allows customers to try and buy first, and also to teach their own image to the customer free of charge. Last year, the popular U.S. sales cost of 137 million yuan, of which 32.63 million yuan for promotional advertising fees.





in addition to advertising to the media, the prospectus revealed that last year, the popular U.S. hired Fan Bingbing endorsement brands and other activities, costing 11.67 million yuan.





at least in terms of earnings, the financial position of the popular beauty is considerable and growing. 2011-2013, its revenue was 280 million yuan, 350 million yuan and 450 million yuan, corresponding net profit of 52.79 million yuan, 66.15 million yuan and 88.44 million yuan, the annual compound growth rate of 26.59% and 29.43% respectively.





at the same time, 2013, its asset-liability ratio is only 23.01%, accounts receivable turnover rate of 86.48 times, it is still lying on the account of 260 million yuan of cash.





as of the end of last year, the popular beauty of earnings per share of 1.31 yuan, the plan issued no more than 25 million shares, the old stock transfer does not exceed 9.64 million shares, to raise capital of 420 million yuan.





The company, which started out as a "small hairpin" business, will be one of the biggest beneficiaries of a successful IPO.





prospectus shows that Qi to invest in the popular beauty of the first major shareholder, the shareholding is 19.2375 million shares, accounting for more than 28.5%. According to the information, Qi to invest in the first major shareholder for the offshore company LC Fund IV,LP. The latter's large shareholder, Nan Ming Limited, 100% of the interests of Lenovo holding all.





2008, Qi to invest through the way of capital increase, take over the popular beauty of the first major shareholder position. At that time, the capital to invest in the amount of money is 52 million yuan. Lenovo is quite optimistic about the domestic consumption of female supplies, "fashion female customers have a certain ability to consume, in the apparel consumption more attention."





If the popular US IPO succeeds, the market capitalization of the capital holding stake may be close to 700 million yuan.





the risk of being Shanzhai





previously reported that the success of popular beauty benefited from the "hair Shop small entrepreneurial low threshold." But its founder, Rai Jianxiong, is also disturbed by the low threshold, "there is a fake version of the popular beauty into sight, and many of those shopkeepers from the popular us to start a business."





's prospectus, popular beauty also expressed such concern. It warns investors to pay particular attention to the risk of "brand counterfeiting".





2012, the popular beauty in the court sued a Nanchang Taobao shopkeeper. Popular Beauty believes that the shopkeeper is sold on the headdress, with its peers. Finally, the court ruled that the shopkeeper compensation for the economic losses of the popular US $10,000.





popular laudatory name, it is difficult to get all the infringement information in the market, "if the future of the company's products are a large number of counterfeit and quality of service is not up to standard, will have a negative impact on brand image and market development."





In addition, popular beauty has a "high degree of dependence" on a single product. Figures show that between 2011 and 2013, fashion jewelry accounted for 77.73%, 72.55% and 69.51% of sales revenue-although the past has been trying to increase the proportion of cosmetics, but it does not seem to be a fast pace.





"If there is a significant change in consumer preferences, or a large fluctuation in the price of jewelry, the company's operating income and profitability will be adversely affected." "In terms of fundraising, the popular US plans to bring in 40 million yuan to replenish liquidity," he said. This part of the circle from the role of shareholder funds, is mainly used to play advertising.





related





Blonde Rabbi Gross margin comparable to popular beauty





another industry with super suction ability, non infant products. The proposed IPO enterprise Blond rabbi, the main baby supplies. The prospectus shows that the company's combined gross profit margin last year was around 50%, about the same as popular beauty.





"At present the Chinese family mostly present" 4+2+1 "(four ancestors, two parents and the only child) structure, the baby child is the parents, the grandparents and the grandparents consumer expenditure main target. "In the prospectus, the blonde rabbi mentions the theory two times to describe the market outlook for its products."





from the blonde rabbi released data, the baby supplies are visible "profiteering." Last year, its comprehensive gross profit margin was 51.59%. In the previous two years, the data were 46.53% and 50.38%, respectively.





to 2013 years of data products, infant apparel gross profit margin of 53.16%, of which the apparel for 48.53%, out of clothing up to 58.86%; the gross margin of infant commodity is 47.08%, of which the gross profit of nursing supplies and toiletries are up to 52.25% respectively. and 57.4%.





"People's price sensitivity to infant products is relatively low, which is conducive to better quality products to enhance value-added products." The blond rabbi believes that the implementation of the "two-child" policy will help broaden the market space for infant consumer goods.





The blonde rabbi also said it faced increased market competition and the risk of some product outsourcing, "which could lead to a decline in product quality".