Youngor: Main business right Capital left

Key words: The advantage of industrial capital: long investment time, the domestic brand awareness of a higher disadvantage: the textile and apparel industry gross margin is too low, business decentralized industry evaluation: Youngor currently "three sets of carriages," the diversification strategy, the problem is that three harnesses is running in different directions, but pulling is a car, the actual effect is not "1+1> 2 ", may be" 1+1<1 "constructive comments: Youngor's three major businesses should operate independently of each other, learn Itochu business model, set up an independent division, pay attention to each division's independent survival and Development estimates Youngor (600177.　　SH) The reasonable level of stock price is a troublesome problem, it is not only a clothing enterprise, is also a real estate company, or an equity investment company, the business spans three areas, each industry is different, how to merge belongs into a reasonable price range, can only be benevolent. Trouble is more than that.　　Youngor since its establishment in 1979, the main business apparel and textile has actually been growing, but the surge of real estate businesses and equity investment so that Youngor's textile and apparel industry is relatively "bleak", the sector of the "do not work" criticism of the Voice also rise and shine. If you look at the business performance, Youngor's diversified development strategy has not failed, in 2009, Youngor 10 billion yuan in the main business income, 69亿来 from the textile and apparel, 52亿来 from real estate, concrete to net profit, real estate and equity investment business net profit as high as 2.8 billion yuan,　　Textile and apparel Business is a net profit of 440 million Yuan 6.4 times times; if from the main industry's development model and profit level, Youngor is really behind, compared with rivals, it started early but the gap is huge.　　As a well-known garment enterprises, Youngor to get rid of the reputation of "do not work", it seems only in the "dilemma" to go beyond, to seek industrial and capital balance. The fifth year after the establishment of Youngor, in 1984, a Japanese clothing retail company named Uniqlo was established, and in 1985, Inditex, headquartered in Spain, was established.　　More than 20 years later, Uniqlo and Inditex's flagship clothing brand "ZARA" is a hot sell in China, with its business in the global market. Uniqlo compiled a list of the world's top ten apparel companies ranked in the 2009 fiscal year, Inditex topped the list, sales of 11.084 billion euros (about 102.3 billion yuan); Uniqlo sales 685 billion yen (about 56.1 billion yuan), ranked five, the top ten, There are no apparel companies from mainland China.　　As China's leading apparel enterprises, 2009, Youngor Apparel industry income of 5.53 billion yuan, plus the textile business of 1.97 billion yuan, both add up to 7.5 billion yuan, only Uniqlo income of one-eighth, Inditex income of 7.3%. It is noteworthy that INDITEX, Uniqlo's main business is only one, that is, clothing,But Youngor is not. Youngor's equity investment took the first step in 1999, when Youngor invested 320 million yuan in a 9.61% per cent stake in Citic Securities, becoming the second largest shareholder in Citic Securities. Youngor 2009 Annual report shows that the company holds 14 listed companies such as Citic Securities shares, the total investment of 4.67 billion yuan, the market value of 12.6 billion yuan, floating surplus of about 8 billion yuan.　　In addition, Youngor also holds Hainan natural Rubber Industry Group Co., Ltd., including PE investment and other investment projects 8, the cumulative investment of 706.4265 million yuan. At the same time, in 2002, Youngor invested 77.98 million yuan to buy Ningbo Youngor Real Estate Co., Ltd. 92.78% of the equity, Youngor wholly-owned subsidiary of Ningbo Youngor Import and Export Co., Ltd. to invest 6.07 million yuan to buy Ningbo Youngor Property Co., Ltd. 7.22% of the equity, which marks the official entry of Youngor into the property sector. 2009, Youngor realized real estate business income of 5,195,450,300 yuan, net profit of 1,191,343,000 yuan, respectively, year-on-year growth of 49.88% and 53.16%, construction projects 15, under construction 2.2463 million square meters, a comprehensive record record. Youngor property in China's real Estate Evaluation Center released the "2009 China Real Estate Development Enterprises 500 rankings" ranked 56th in the "Zhejiang Real Estate Development Enterprise 20" ranked fourth.　　Ningbo, Hangzhou and Suzhou are the main areas of Youngor real estate business.　　The main industry "short board" Youngor made the above real estate investment and capital investment, the main reason is that the gross profit margin of textile and apparel industry is too low. Youngor through the cultivation, textile, printing and dyeing, clothing research and development production and sales of various links, and the main clothing research and development and sales of Inditex and Uniqlo comparison, the cost advantage of Youngor in the clothing gross margin is not dominant.　　In 2009, compared with the financial data, Youngor garment gross profit margin of 35.5%, Uniqlo gross margin 49.9%,inditex gross profit margin of 57.1%.　　Brand Premium is not enough, the retail market has not yet fully developed, is the leading cause of the lower gross margin of Youngor. Youngor started out as a clothing business, and industry was the forte of Youngor. In order to guarantee the high quality of production, Wang Qingji, director of technology Research and Development Center of Youngor Group Co., said Youngor has established a cotton planting base in Xinjiang, the base of which has a length of 40 mm, longer than the United States, Egypt's best cotton long 3 mm, so that Youngor can produce finer, more powerful yarn, Including the world's finest 350 yarn, the texture and luster of the yarn is like silk. Youngor needs 80% of cotton a year from its own cotton planting base, youngor through the cultivation, textile, printing and dyeing, clothing research and development of all aspects of production and sales, the product quality of all aspects of the master in their own hands, this was the Guangdong Fashion industry Economic Research Institute Dean Li Kello called the industrial Chain "vertical integration"　　of heavy asset-oriented enterprises. However, is not the production of the better quality products can sell the higher prices. Li Kello said: "She is authorized to process the factory, the she to provide fabrics, plate-type, to make a suit of clothing market price can sell to 20,000 yuan, but if the summer dream of their own, with their own brand ' summer Dream ', the same craft a suit can only sell 4000~5000 yuan, this is the brand difference. Youngor's suit production may well be done, but the brand does not have high value-added. "The premium of the clothing brand, depending on the company's grasp of the retail market, an important aspect of this grasp is the rapid response to the retail market, the heavy assets of Youngor and" ZARA ", Uniqlo, compared to the size of the transformation is much slower. In the frequency of product innovation, Youngor brand clothing twice a year to meet, meaning that Youngor stores an average of six months to update the goods, Jack Jones (Jack&jones) a year to hold 12 orders, and has always been to fashion style update fast,　　The Inditex, which follows the fashion trend, offers a new outfit every two weeks, with a distribution center that delivers clothing to European stores for an average of 24 hours and delivers them to stores in the United States and Asia on an average of 48 hours. Another indicator of the strength of the firm's control over the retail market is a leveling effect (that is, average per square metre of sales), the higher the leveling effect, the higher the sales performance achieved under the same area conditions.　　2009 Uniqlo Business Total area of 740,489 square meters, with its annual sales divided by the total business area calculated by about 65,000 yuan, the Inditex is about 40,000 yuan, and Youngor's effect is 14,600 yuan, is about one-fifth of Uniqlo, is Inditex One-third.　　Three horses, one car, three cars? Youngor Chairman Li Rucheng still frequently for the textile and apparel business "platform", 2009 and 2010 China Apparel and Apparel exposition, Li Rucheng is a high-profile preach Youngor new products, the Chinese hemp, however, the former as a fashion designer mister has slowly fade out of the main clothing industry,　　Youngor's clothing business has just been taken over by his brother Li Ru.　　Youngor across the three major areas of textile and apparel, real estate, equity investment, Li Rucheng is obviously not as young as the factory director of Youth, everything, all pro-Pro, diversification strategy to bring rolling profits at the same time, also let the Li Rucheng. Li Kello that the current "three sets of carriages," the diversification strategy, the problem is that three harnesses run in different directions, but pull is a car, the actual effect is not "1+1>2", may be "1+1<1". He said: "A professional to do the stock, so he turned back to open a restaurant, is not open, because his psychological structure has changed."　　"Youngor's three main industries in Li Kello view, should operate independently of each other, learn Itochu business model, set up an independent division, pay attention to each division's independent survival and development." For strippingThe suggestion that the real estate and equity investment will be put into other companies has been heard by people in Youngor, but there is no conclusive conclusion as to how to operate and whether it can be achieved.