What Kind Of Garment Foundries Does The Fashion Industry'S Richest Forge?

Blue chip new China's knitting giant Shenzhou International is the most profitable company in China's clothing industry. Ma Jianrong, the leader of this team, is the richest in the clothing industry. The second place is Hai Lan's home, Zhou Jianping ranked second, and her body is less than 1/2 of Ma Jianrong's.

Shenzhou group was founded in 1988. Its main enterprise is Ningbo Shenzhou Knitting Co., Ltd., is an enterprise integrating weaving, dyeing, printing, embroidery, cutting and sewing four complete processes. It is the largest vertical knitting garment manufacturer in China. It is the largest export enterprise of knitted garments in China in 2004 and the largest knitwear manufacturer in China.

The company went public in Hongkong in 2005 for better development.

In the fiscal year ending December 31, 2018, group revenue increased 15.8% to 20 billion 950 million yuan, and net profit increased 20.7% to 4 billion 540 million yuan over the same period last year. Gross profit margin increased 0.2 percentage points from last year to 31.6%. Gross profit rose 16.6% to 6 billion 614 million yuan over the same period last year, achieving double-digit growth in revenue and net profit for sixth consecutive years.

Positioning high-end clothing production

After investigating the market, Ma Baoxing, chairman of Shenzhou International, found that most of China's textiles were exported to overseas through foreign trade companies, so he decided to upgrade the company's positioning to high-end clothing production.

Through investigation, Ma Baoxing found that children's clothing in the Japanese market is generally more expensive than clothes sold by adults. It is because the Japanese market has strict requirements for clothing fabrics, formaldehyde residues and dyeing, especially infant clothing, and the indicators are far more than the domestic standards.

So if we can win the production of baby clothing stores in Japan, it will definitely be an important moment to change the historical situation for Shenzhou knitting.

Through strict requirements, Shenzhou knitted market has opened up the Japanese market.

Upgrading equipment and technology

When technology is monopolized by foreign markets, it is the way out to buy advanced machines, not only to increase the output, but also to study the new printing and dyeing technology.

As a large factory, it is common to receive large orders. In order to ensure that normal delivery can be made no matter what circumstances, it is necessary to introduce first-class equipment and technology. Only when the equipment is upgraded, can more garments be manufactured quickly and well.

First class profitability

Shenzhou International is different from the last one mentioned in Jingyuan international, and its profitability is very strong.

Taking 2017 as an example, the total revenue of Shenzhou International period was 18 billion 85 million yuan, an increase of 19.8% over the same period, a gross profit of 5 billion 671 million yuan, a gross profit margin of 31.36%, a net profit of 3 billion 760 million yuan, a 27.6 increase in net profit and a net interest rate of 20.79%.

In contrast, the industry's second crystal International (02232), operating income of 2 billion 178 million yuan in 2017, gross margin 20.31%, net interest rate is only 6.82%.

Compared with the small profits of Jingyuan international, Shenzhou International is a mythical existence in revenue.

Shenzhou International's continuous improvement in equipment and technology has also improved its production efficiency.

And its services are mainly sports clothing such as Adidas, Nike and PUMA; Jingyuan International's main customers are UNIQLO, H&M, GAP and other casual wear.

Overweight overseas capacity

According to the company announcement, in 2019, two factories in Southeast Asia will be built and put into production. In the second quarter of 2018, Vietnamese factories began to recruit and put into production. In the second half of 2019, the Kampuchea plant was built and planned to be put into production in 2020.

According to the plan, the newly built garment factories in Vietnam and Kampuchea will employ 5000-6000 and 15000-17000 workers respectively, which will increase the proportion of employees in Southeast Asia in the current 40%.

Shenzhou International also takes the opportunity to build factories and expand in Southeast Asia when all enterprises continue to move towards the Southeast Asian market. This is also one of its foresight.

But it is worth noting that in March this year's earnings report showed that 2018's performance was worse than market expectations.

It also led to a price drop of more than 7%, and a 6.23% day risk of closing 100 Hong Kong dollars, at HK $100.8, corresponding to the market value of HK $151 billion 525 million.