Why Did YOUNGOR Give Up The Name Of "Stock God" As A Tailor?

In the twenty years of the capital market, YOUNGOR, once known as the "stock god" who has been delayed by the garment industry, has recently begun to retreat. It has announced that it will no longer carry out the financial equity investment in the non principal sectors.

According to the 2018 annual report, the net profit is 830 million, the net profit is 1 billion 49 million, the net profit is 1 billion 798 million, and the financial investment is still the main force of the company's earnings.

Why did YOUNGOR, who had always been able to earn money, go back in a hurry?

No longer investing in non main businesses.

YOUNGOR (600177-CN) recently announced that the company's deliberation and adoption of the motion on investment strategy adjustment will further focus on the development of the main garment industry in the future. In addition to strategic investment and continuing investment commitments, it will no longer carry out financial equity investments in non main sectors, and take the opportunity to deal with existing financial equity investment projects.

YOUNGOR said the move is to reduce the impact of capital market volatility on the company's uncertainty, making investors and capital markets more clear and more clear about the company's knowledge and judgment, and the company intends to no longer add new financial equity investments in non main sectors.

In the past, in addition to fulfilling the original investment commitments, the company will take different strategies based on different investment characteristics, such as two market reduction, agreement pfer, withdrawal after the expiration, exit after listing, and so on.

The announcement shows that as of the end of 3 2019, YOUNGOR invested 39 projects in total, with an investment cost of 30 billion 455 million yuan and a final value of 32 billion 20 million yuan at the end of the year.

There are 38 projects to be disposed of. Among them, the Bank of Ningbo is a long-term strategic investment project and is not within the scope of disposal.

YOUNGOR will no longer hold Ningbo bank.

That is to say, in addition to the Bank of Ningbo, YOUNGOR will gradually withdraw from all financial investment projects, and the total investment cost will be 17 billion 937 million yuan.

Financial investment has brought huge rewards to the company.

The men's wear brand has been "doing nothing".

YOUNGOR was founded in 1979, is the leading domestic suit and shirt industry. After rumors of Xu Xiang, the first luxury item of self reward, is YOUNGOR suit.

In the capital market, YOUNGOR has many names such as "stock god" and so on.

The company has been listed on the Shanghai Stock Exchange since 1998, and has been expanding in the capital market in second years.

In 1999 -2005, YOUNGOR gradually invested in CITIC Securities, Bank of Ningbo, Zhejiang property insurance and so on.

In 2005, the split share structure reform was launched, and the capital market entered a period of rapid development. The market value of financial assets held by YOUNGOR increased rapidly, which was more than 20 billion yuan.

YOUNGOR's investment business is done by the wind and water. Li Rucheng, the real controller, says that investment is not the same. It can make money in the manufacturing industry for 30 years at once.

Data show that in 2005, YOUNGOR's investment income was 4 million 806 thousand yuan, which increased by 7 times more than 34 million 915 thousand yuan a year, while in 2007 it increased rapidly to 2 billion 754 million yuan.

In 2018, YOUNGOR's investment income has reached 3 billion 207 million yuan.

Based on the capital demand of business development and the development prospect of capital market, YOUNGOR put forward the development strategy of "three carriages" in 2007, and prudently explored investment business on the basis of steady development of clothing and real estate business.

According to incomplete statistics, during the 1998-2017 years, the total net profit of YOUNGOR clothing was 9 billion 590 million yuan, the net profit of real estate business was 10 billion 680 million yuan, and the total net profit of investment business was 12 billion 730 million yuan.

Why not invest in the financial sector?

Since the introduction of financial investment into the "three carriages" strategy, YOUNGOR has witnessed the rapid development of the capital market and the investment performance has been rising gradually since the 12 years.

Li Rucheng, the head of the company, wrote to shareholders in 2018 that YOUNGOR has raised 7 billion 100 million yuan in the capital market and 15 billion yuan in dividends in the past 20 years, and its net assets increased from 1 billion yuan to nearly 30 billion yuan.

But YOUNGOR's capital gamble is not smooth sailing.

In 2007, on the eve of Jintian copper's IPO, YOUNGOR attacked shares and sold 3.05% of the shares at a price of 3.6 yuan / share to the feast.

The Jintian copper industry failed to hit IPO several times, and the new three boards must not be listed.

At the end of 2017, the market share of YOUNGOR holdings was only 111 million yuan, or even less than the investment in 2007.

Now YOUNGOR has put the Jintian copper industry out of the list.

Another big loss came from investment in CITIC shares.

In 2015, YOUNGOR has bought and participated in the subscription of new shares through the two level market, holding 145 thousand and 500 shares of CITIC shares, accounting for 4.99% of the total share capital of CITIC, and the total investment cost of 17 billion 62 million yuan.

What surprised the "stock god" was that CITIC shares fell 16.92% in 2016.

YOUNGOR, which owns 145 thousand and 500 shares of CITIC shares, has a net profit of 1 billion 657 million yuan, down 39.24% from the same period last year.

The two time we bet on the fate of the CITIC system may give real controller Li Rucheng the determination to abandon his equity investment.

In 2017, the company also made a provision of RMB 3 billion 308 million yuan for impairment of assets in CITIC, which affected 3 billion 308 million yuan of net profit attributable to the parent company.

The ups and downs of investment returns also bring very uncertain expectations to the market.

From the perspective of capital market logic, companies with diversified operations are usually undervalued by the market.

Therefore, at the time of YOUNGOR's 40th anniversary venture, a major adjustment to the development strategy has been made to achieve the goal of maximizing the value of the company.

Fortunately, YOUNGOR has not given up its main service sector, which has remained at around 4 billion yuan since 2012 and exceeded 5 billion in 2018.

The net profit of the same period averages about 6-8 billion yuan, which is relatively stable.

At present, the tax reduction and tax reduction efforts on the real economy are increasing, and the burden of the entities has been alleviated to a certain extent. This is a good time for YOUNGOR to take the opportunity to return to its old bank.

Li Ziru, a real controller, has publicly stated that YOUNGOR is the core of clothing if he wants to be bigger.

The company plans to increase its annual revenue by about 20% in 2019.

Clothing business continues to open large stores.

Real estate business is expected to start 5 new projects, new sales area of 373 thousand square meters.