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Author | Weming Star


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China is a big country with 14 billion people and is also the world’s largest clothing consumption and producer. According to data from “2019 China Clothing Market Report” released in July 2019, my country’s clothing industry market has reached 2.08 trillion yuan, an increase of 7.8% year-on-year, and it is expected that my country’s clothing industry market will continue to grow in 2019. It reached 2.15 trillion yuan, but the increase in the uncertainty of economic development, the growth rate will slow down to 3.4%.

As mentioned, women can top half a day. In fact, in the apparel industry, women’s clothing is also the largest branch department in the apparel industry. From the 2018, the performance of the various molecular industries in my country’s clothing market, the market share of women’s clothing markets is the largest. According to Ou Rui, 2018, my country’s women’s market share accounts for 48.1% of the entire apparel market.

According to Ou Rui Consults, the market size of women’s industry reached approximately $ 923.2 billion in 2017, which is expected to reach the size of approximately 1056.5 billion yuan in 2020.

In the clothing list, Song Puls (603808.sh) is a domestic brand established in the 1990s and is headquartered in Shenzhen. According to the statistics of the China National Business Information Center, the 2018 songs have achieved the first achievement of the first year of high-end women’s market.

The company listed in 2015, real-controlled people are Summer New, Hu Yumei, and its women’s brand is mainly located in Mid-Tight-high-end.

I. Industry competition pattern

In terms of industry competition, the huge market space is still highly dispersed. On the one hand, from the perspective of demand, clothing is relatively personal, and people’s consumption is relatively personal, and from the supply perspective, clothing brands in the domestic market, especially domestic brands, and large number of brands are marketing, cost performance, Brand influence, etc. has not yet formed a significant advantage to seize market share, so industry concentration is low.

According to Ou Rui Consulting Data, 2018, the top 5 brand market share in China’s clothing market is only 6.9%, compared to Japan, the United States reached 25.7%, 15.8% respectively.

Specifically to the traditional industry in women’s clothing, the industry has a low barrier, and has a large number of brands, the style, and complex consumption demand. It is a full competition industry. At present, the competition in the domestic women’s clothing has gradually developed from simple price competition and channel competition, and with the continuous entered the domestic market, the impact on domestic women’s brands have aggravated.

On the other hand, according to McKinsey report, there is a significant Matthewa effect in the fashion industry. In 2005-220, the top 20% of clothing companies contributed all economic profits throughout the industry. By 2016, the previous 20% contribution rate It has been added to 144%.


Second, the company profile

Song Phalism mainly engaged in women’s clothing, production and sales. At present, there are 7 companies, including China’s high-end fashion brand ELLASSAY, Germany high-end women’s brand Laurèl, American light luxury trend brand Ed Hardy, French designer brand Iro Paris American designer brand Vivienne Tam, Belgian designer brand Jeanpaulknott, UK contemporary fashion brand Self-portrait.

Among them, the company has the global ownership of Ellassay brand and Iro brand, laurèl brand, Vivienne Tam brand and self-portrait brand in mainland China ownership, Ed Hardy brand and Jean Paul knott brand in Greater China (including Hong Kong, Macao and Taiwan) ownership . A brand matrix containing more attributes such as fashion, tidal, light luxury, and net red is now formed, covering different market demand.

In terms of equity structures, real-controlled people summer new, Hu Yumei couple hold 60.22% of the shareholding of listed companies through Shenzhen Song Di Investment Management Co., Ltd., and the equity structure is relatively concentrated.

In the first half of 2019, the company achieved operating income of 1.266 billion yuan, net profit of 246 million yuan, total assets increased from 1865 million yuan at the end of the year to 3,811 billion yuan.


Third, the company’s main brands from single to multi-diversity

The company’s main products include Iro costumes, tops, skirts, jackets, trousers, women’s shoes. Since its establishment, the company has won the coordinated development of “Ellassay” brand.

Among them, Ellassay, founded in 1996 as a brand high-end women’s clothing, is the company’s most important source of income. As of the end of June 2019, Ellassay had 157 direct stores and 139 distribution stores. In 2018, ELLASSAY achieved operating of 1004 million yuan, accounting for 41% of the total revenue of the year. In the first half of 2019, Ellassay achieved $ 477 million revenue, accounting for 38% of the first half of the year.

Laurèl was founded in Germany in 1978, which was originally a subsidiary of Escada, one of Germany’s three famous luxury brands, and positioned international light luxury. In 2015, the company acquired 100% of the EMO International in 1111,800, and obtained Laurèl’s ownership and management rights in mainland China.

ED Hardy is an international light luxury trend brand, which was established in 2004 in the United States. By acquisition and purchase of minority shareholders in 2016 and 2018, the company currently holds a 90% stake in stocks, with the ownership of Ed Hardy in mainland China and Hong Kong, Macao and Taiwan.


IRO is located in the field of light luxury fields. In 2017, the company acquired 65% of the equity of 79 million yuan, and passed the IRO controlled rights through the Adon WORLD of the former sea forest holding. Song Pulsi currently has Iro brand’s ownership of the world and is fully dominated by its business development in China.

Vivienne Tam Series Chinese Fashion Designer Vivienne Tam (Vivi Tan) founded in New York in New York in 1994, its main products involved in clothing, handbags, jewelry, perfume, shoes, etc., serving the clutch and design pursuit. High quality life, young women, in New York, Tokyo, Singapore, Seoul, Hong Kong, etc. have opened a store.


In 2017, the company completed 75% of Wei Wei’an Tan with 37 million yuan. Currently, singing has ownership of Vivienne Tam brand in mainland China.

Jean Paul Knott Brand by Belgian Designer Jean-Paul Knott (Chinese name “Let Paul Not”) was founded in Belgium Brussels. The company set up a joint venture Shenzhen Geo Industrial Co., Ltd. with Jean Paul Knott, and holds 80% of the shareholders and obtains its ownership in Greater China. As of the first half of 2019, Jean Paul Knott brand has opened his first store in Shenzhen.

Self-portrait brand was founded in November 2013 in November 2013 in November 2013. In August 2019, the company obtained the ownership of the British designer brand Self-Portrait in the Greater China.

Through the external mergers, the company has developed from a single brand ELLASSAY to develop a clothing listed company with 7 senior fashion brands. Among them, Ellassay is the company’s own brand, Laurèl, Ed Hardy, Iro, Vivienne Tam, Jean Paul Knott, Self-Portrait as the company’s acquisition of international brands.

In the first half of 2019, all brand revenue, gross profit margin, and the year-on-year growth situation were as follows:

(Data Source: Company Announcement)

Fourth, acquire Baiqiu Network

In August 2016, the company acquired 75% of the equity in Baiqiu network with 278 million yuan. Baiqiu Network is mainly engaged in e-commerce operations, and its experience in fashion and luxury and light luxury arena, this acquisition helps improve the company’s online channels.

In 2016 – 2018, the net profit of Baiqiu Network was 3,418.38 million yuan, $ 4,990,054,500,500, has completed the results requirements for the 2016-2017.

V. Finance

1, growth

The sales of songs has increased from $ 835 million in 2015 to RMB 243.6 billion, with an average annual compound growth to reach 42.87%, and 17.09% of revenue growth in the first half of 2019.

(Data Source: Choice, Company Announcement)

The company’s income growth has grown faster, the growth is better, in addition to the company’s original brand growth, the company’s foreign acquisition is also a reason for the rapid growth of revenue.


The company’s revenue growth rate is in a higher position in peers. However, the Chinese version of Zara Raiseberg rapidly expanded riots is alert to the song. If there is a problem in the company’s channel expansion process, the continued growth of company performance is likely to be affected.

2, profitability

The apparel market is a full-competitive industry, branded brands with design and channel advantages, and its premium capacity is generally stronger. Whether it is from its own recent earnings or peers, the company’s sales gross profit margin, sales net interest rate and net asset yield are in a higher position in the industry.

3, asset liabilities

Due to many acquisitions of songs, while bringing performance growth, as of the end of June 2019, the goodwill reached 547 million yuan, accounting for 14.34% of total assets, which is an asset that needs attention. Pay attention to the possible impairment risks in the future.

In terms of asset-liability, as of the end of June 2019, the company’s asset-liability rate is 27.49%, and the asset is mainly monetary funds, business receivables, inventory and business long-term assets. Relative assets, the total liabilities are not large, and only 232 million long borrowings in interest interest liabilities, the company is very small due to insufficient solvency.

4, cash flow and dividends

In recent years, the company’s cash flow and revenue, net profit have relatively good match, but also present a certain unstable. In 2016 and 2018, there was less than 1 times in 2018, 0.46 and 0.93, respectively.

In terms of dividends, 2015 – 2018, Song Xi cumulative cash dividends (including taxes) 414 million yuan, four years accumulated dividends accounted for 40.91% of the total net profit for three years.


The liability rate of songs is in the low growth, but it should also be seen that buy buy buying in recent years is a very important boost, and continuous epitaxial growth has not sustainable, and the future is still paying attention Whether the company’s acquisition coming in is stable growth.


The above is

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(Data Source: Choice, Company Announcement)

(Data Source: Choice, Company Announcement)

(Data Source: Choice, Company Announcement)


(Data Source: Choice, Company Announcement)

(Data Source: Choice, Company Announcement)

(Data Source: Choice, Company Announcement)

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