Multi -brand strategy, the advantages of e -commerce channels are prominent, Hongxing shares increased against the trend


China has gradually become one of the world’s largest clothing consumer markets, and the home clothing industry is a rapidly growing segment of the clothing industry. Due to the influence of the new crown epidemic, the overall growth of the clothing industry in 2020 is weak, but Hongxing shares focusing on the field of home clothing have successfully counterattacked, and both income and profits have achieved double -digit growth. In -depth network channels are closely related, and at the same time, the well -known IP, the income composition is also reasonable.


As an important market segment in the clothing industry, the home service market has not been fully developed and has a strong growth momentum. As the industry leader, Hongxing shares are expected in the future.


Cross the epidemic, steady growth,

ROE greatly leading the industry average

In 2020, the new crown pneumonia’s epidemic affects many industries. Hongxing Co., Ltd. (001209) has been safe and sound, and has grown against the trend; and the growth momentum has continued to this day.

According to the financial report, in 2020, Hongxing’s shares revenue was 1.131 billion yuan, an increase of 12.19%year -on -year; net profit was 134 million yuan, a year -on -year increase of 45.7%. In the first half of 2021, Hongxing shares achieved operating income of 516.5 million yuan, an increase of 12.05%year -on -year; net profit was 53.79 million yuan, a year -on -year increase of 0.24%.

Wind shows that there are 62 companies in Shenwan’s “Textile Clothing-Fashion Home Textiles” industry, where Hongxing Co., Ltd. is located. The average revenue growth rate in 2020 is -12.95%, and the median number is -9.16%; the average net profit growth rate is average is averaged to averaged the average of to be a average of -9.16%. -215%, the median number is -8.66%(Figure 1). In 2020, the growth rate of Hongxing’s shares and the growth rate of net profit was much higher than the industry level.

Data source: wind

At the beginning of last year, the new crown pneumonia’s epidemic spread, offline consumption was sluggish, and store passenger flow decreased. The clothing industry has been greatly affected in the epidemic, showing a recession, and Hongxing shares still stubbornly achieved more than two or more growth in income and profit, which is not easy.

In other words, due to the significant decline in performance in 2020, the clothing home textile company has led to a low revenue and profit base last year. Therefore, the growth rate of revenue and profits in the first half of this year looks high. In the one and a half cycle of the epidemic (from early 2020 to the first half of 2021), Hongxing shares have been relatively stable, and there is no big ups and downs.

From the perspective of the ROE rate (ROE) dimension (ROE), in the first half of 2021, Hongxing ROE reached 9.29%, the industry average was 3.52%, and the median was 3.12%. About a percentage (Figure 2). Hongxing Co., Ltd. is also advantageous with the ROE comparison of other underwear industry companies in 2018-2020.

In the first half of the year, the number of days of Hongxing’s stock inventory was 163.5 days, and the average value of Shenwan’s “clothing home textiles” company was 273 days, which was nearly 100 days higher than Hongxing’s shares. There are two well -known underwear brands inventory turnover days are 259 days and 433 days, respectively. Hongxing shares are obviously better than other underwear brands.

In 2020, Hongxing Co., Ltd. ROE was as high as 27.54%, and the average ROE average of all companies in Shenwan’s “clothing home textile” was -12.42%, and the median number was 3.66%. A percentage point is about 24 percentage points higher than the median.

So, how does Hongxing Co., Ltd. grow up steadily? One is channel advantages, the second is multi -brand advantage, and the third is industry advantages. The epidemic accelerates people’s demand for home service. The home economy and lighting out, healthier and more comfortable to boost the home service industry, the outbreak of market scale has grown, and the penetration rate of home service will further increase in the future.


E -commerce channels make good contributions

Since its establishment in 2004, Hongxing Co., Ltd. has been focusing on the research and development, design, production and sales of home clothing. The main products include home clothing, underwear and other related products.

In the first half of 2021, the retail sales of clothing products nationwide were 487.46 billion yuan, an increase of 37.4%over the same period last year, which was slightly increased compared to the same period before the epidemic. As an important market segment in the clothing industry, the home service market has not yet fully developed and has a strong driving force for growth. In other words, Hongxing shares are in a high -speed development track.


On the other hand, Hongxing Co., Ltd. has launched the Internet sales in advance, benefiting from the development of e -commerce development. In the new crown epidemic, the track advantage and channel advantages have resonated. This is the main reason for Hongxing’s shares to cross the epidemic cycle.

Data show that from 2018 to 2020, Hongxing Co., Ltd. online sales+online direct sales volume accounted for 61.45%, 58.11%, and 69.36%(Note: other revenue of the company also come from online, The actual online sales proportion is higher than the above data). In the first half of 2021, the total sales of Hongxing’s online sales were 389 million yuan, accounting for 75.31%of the total revenue, which has always shown an upward trend (Figure 3).

Data source: prospectus

In 2020, Hongxing’s online sales accounted for nearly 70 %, which is an important reason for revenue to achieve double -digit growth.

Affected by the epidemic in 2020, the sales of Hongxing’s offline distribution channel model was about 244 million yuan, a decrease of 100 million yuan from 343 million yuan in 2019, a year -on -year decrease of 29%. At the same time, Hongxing’s online sales in 2020 exceeded 780 million yuan, an increase of 200 million yuan from 585 million yuan in 2019, an increase of 33.3%year -on -year, which is enough to reach the impact of the decline in offline channel sales.

In addition, in the first half of 2021, Hongxing Co., Ltd. closed 16 newly opened directly -operated stores in accordance with commercial positioning, and the sales amount of offline stores was 1.95 million yuan, an increase of 1.38 million yuan year -on -year. Among them, the average sales of single -store stores for more than 12 months of opening increased by 1.63 times year -on -year. In 2020, the sales amount of other channels of Hongxing shares was 101 million yuan, an increase of about 28.1%over 78.8 million yuan in 2019.


In 2020, the scale of online sales channels was about three times offline, and the growth rate was 62 percentage points more.

Compared with their peers, Hongxing’s online sales channels are displayed. Consultation of clothing listed companies in the 2020 report can be found that the costume home textile company with operating income of more than 10 billion yuan has declined without exception, which has a greater relationship with their sales depending on offline channels.

Due to the high online proportion, Hongxing Co., Ltd. eats the bonus of e -commerce, and has successfully avoided the epidemic black swan; in addition, even if the online channels are working, Hongxing shares pay attention to “multiple legs” walking. Tmall (including Taobao), a subsidiary of Alibaba Group, is part of The agency channels mainly rely on Vipshop. This decentralized layout reduces the risk of online channels.

The 2021 interim report showed that Hongxing’s online direct -operated and agency revenue of the online business was 359 million yuan, accounting for nearly 70 % of the operating income ratio in the first half of the year. Among them, online direct sales revenue exceeds 200 million yuan (Tmall/Taobao channel income is 150 million yuan), online sales revenue is 159 million yuan (Vipshop channel income of 140 million yuan), and the proportion of income on overall online channels The proportion is 51.36%and 40.9%, respectively. Others are online distribution and distribution revenue accounted for online channels, with a total of 7.74%of the income.


Multi -brand strategy, well -known IP in hand, more reasonable revenue structure


China has gradually become one of the world’s largest clothing consumer markets. From January to June 2021, the retail sales of clothing products was 487.5 billion yuan, an increase of 37.4%over the same period last year. Compared with the same period before the epidemic, it increased slightly. The industry’s growth rate is generally stable. The improvement of residential clothing consumption level has brought about the growth of the domestic clothing industry market. The sales of the home clothing industry increased from 30.2 billion yuan in 2019 to 54.9 billion yuan in 2020, an increase of nearly 50 %, and it was a rapidly growing segment of the large clothing industry.

As an important market segment in the clothing industry, the home service market has not been fully developed and has a strong growth momentum. The main product of Hongxing’s shares is home clothing. The company has formed misplaced competition with other underwear brands in inspired by competitive incentives.

In 2020, Hongxing’s home service revenue revenue was 927 million yuan, an increase of 11.28%year -on -year in 2019, accounting for more than 80%of the total revenue (Figure 4). In the first half of 2021, the revenue of home service was 397 million yuan, accounting for about 77%of the total revenue ratio.

Hongxing Co., Ltd. is a recruit in the capital market. It just landed on the Shenzhen Stock Exchange in July 2021, but its brand has a strong influence in the clothing industry.

At present, Hongxing’s main products include home clothing, underwear and underwear, etc., with a total of five major brands. The respective brands have different product lines. Underwear and underwear.


The “Fenteng” brand has the longest history. It always adheres to the concept of “letting Fenteng”. The product covers the levels of consumption levels and people with different ages. Kean’s “product interior underwear and vests are mainly underwear, and the brand characteristics are more young. The main audience of “Fenteng Home” is a fashion person who pays attention to the quality of life and style of life and yearning for healthy and beautiful home. For the first -tier to third -tier cities, it is slightly different from other brands from the country to five -tier cities.

The brand characteristics of “Marsa” and “Thousand Line Arts” products are more distinctive, and they are mainly international fashion trends such as Britain and Japan and South Korea.


In addition, Both the Malenass and Fenteng brands do home service, but the brand culture of Malenass is to shape the self -confidence and elegance of women in the new era, inspire more women in the new era, discover the beauty of their own, discover the beauty of life, courageous pursuit, and pursue it. Enjoy life. Mainly facing female customers who require the quality of life for emerging middle -class women, white -collar elites, etc.; they are separated from the user base of the Fenteng brand. The price range of the Malenasa brand is from 189 yuan to 1669 yuan, and the lower limit and upper limit are significantly higher than the Fenteng brand. A higher price means a better level of gross profit.

Under the multi -brand and multi -product operation of Hongxing, the composition of income has also gradually optimized, changing the major situation of home service. In 2017, the revenue of home service was 567 million yuan, accounting for 87%of the total revenue; from 2018 to 2020, home service accounted for 84.2%, 82.6%, and 82%; in the first half of 2021 The proportion of serving in total income gradually decreases (Figure 5).

In the first half of this year, the growth rate of Hongxing’s home service revenue fell to 4.63%; fortunately, the revenue of underwear and underwear product revenue reached 37%, which “pulled back” the overall revenue growth rate to 12%. Performance fluctuates. In addition, the overall gross profit margin of underwear and underwear products was slightly higher than that of home clothing, reaching 42.28%in the first half of the year, which is about 1.45 percentage points higher than the 40.83%gross profit margin of the home service.

Based on some consumers’ preferences for IP, Hongxing shares began to launch cooperative home service. The company has obtained the use of the use of “LINE Cartoon Image” and “Snoopy” series cartoon image. Clothes.

In addition, Hongxing shares also obtained the use of Miffy & Friends character/illustration permits in 2020, as well as the use of the national tide trademark “Dunhuang Museum” and Dunhuang theme gallery. Through cross -border brand cooperation, Fente conducted the entire network advertising and brand activities to promote a wider recognition of the Fenteng brand, thereby achieving brand strategic goals.

Live broadcasting e -commerce has shined in recent years. Hongxing Co., Ltd. has reached strategic cooperation with well -known anchor Wei Ya to promote product promotion through anchors such as Weiya, Sydney, Lie’er Baby, and increase brand awareness.

Hongxing’s sales rate was 18.95%in the first half of 2021, which was 2 percentage points higher than 16.92%in the first half of 2020, but at the same time, the gross profit margin also increased from 39.93%to 41.35%(Figure 6). Therefore No decline.

Hongxing shares implement multi -independent brand operations, cooperate with well -known IP and head anchors, reach more potential users, take root in the clothing industry industry, and the main business home service is also on a high -growth segmentation track. The company’s growth is tested in the epidemic; at the same time, the sales channel is transferred to the e -commerce platform in time, and the size of the home service is relatively loose and standard, which is more conducive to online sales and future growth.

As of October 15, the P / E ratio of Hongxing Co., Ltd. PE (TTM) was 18.6 times, and the average price -earnings ratio of clothing home textile companies was 20.74 times. Essence


Data source: wind

Data source: wind

Data source: wind

Data source: wind