On January 8, 2024, Peacebird took the lead in releasing the first 2023 performance forecast in the textile and apparel industry, and the company is expected to achieve a net profit attributable to the parent company of 4about 1.5 billion yuan, an increase of about 125% year-on-year, or will achieve the previous equity incentive target. In addition, the day after the announcement, many shares in the textile and apparel sector were actively traded.
*: Photo.comPeacebird's net profit attributable to the parent company increased by 125%.
On January 8, 2024, Peacebird (603877SH) announced that it will increase its performance in 2023, and the company expects to achieve a net profit attributable to shareholders of listed companies in 2023 of 41.5 billion yuan, compared with the same period last year, is expected to increase by 23 billion yuan, an increase of about 125% year-on-year; It is estimated that the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses in 2023 will be 2About 7.5 billion yuan, compared with the same period last year, it is expected to increase by 30.2 billion yuan.
Peacebird said that the main reason for the growth of performance is that the company will firmly promote organizational reform in 2023, strengthen brand power and product power, strictly control retail discounts, accelerate the closure of inefficient stores, and focus on improving the company's operating quality. As a result, the company's operating income decreased by about 9% year-on-year, but the gross profit margin of sales increased by 6 percentage points year-on-year, and operating expenses decreased by about 9% year-on-year, which contributed greatly to profit growth.
In terms of accelerating the closure of inefficient stores, Peacebird added a net of 462 physical stores in the first three quarters of 2021 and a net decrease of 350 physical stores in the first three quarters of 2022. In the first three quarters of 2023, there will be a net decrease of 103 directly operated stores under the company's brand Peacebird Women, and a net decrease of 183 franchised stores; Peacebird Men's directly operated stores decreased by 44 and franchised stores decreased by 17; There was a net decrease of 40 directly operated stores and a net decrease of 121 franchised stores; The number of mini peace directly operated stores decreased by 31 and the number of franchised stores decreased by 47. The total number of directly operated stores decreased by 217, and the total number of franchised stores decreased by 394, a total net decrease of 614.
Although the number of Peacebird's physical stores showed an increasing trend in 2021, Peacebird's 2021 annual report disclosed that the company was improving the quality of store operations, focusing on store efficiency growth and profitability improvement, expanding stores with high quality and prudently, and accelerating the adjustment of inefficient store closures. This is also confirmed by the rate of store reduction in the past two years, and in the first three quarters of 2023, the gross profit margin of Peacebird's offline sales increased by 6 year-on-year36 percentage points.
Peacebird belongs to the FMCG apparel industry, and one of the major factors closely related to profitability is inventory. While the inventory occupies the company's working capital, it will also incur warehouse leasing costs, management costs, etc. In 2021, Peacebird publicly issued convertible bonds, and the total amount of funds to be raised will not exceed 800 million yuan, of which 65 million yuan will be used for the digital transformation project of science and technology, and it is planned to achieve more "accurate" and "faster" customer demand insight and reach through the implementation of the project, so as to solve the industry problem of "high inventory and high shortage".
At the end of each year from 2020 to 2022, Peacebird's inventory balance was 240.2 billion yuan, 260.6 billion yuan, 219.7 billion yuan, although the decline in the balance of inventory commodities is limited, but the proportion of inventory commodities aged within 1 year is %, and the provision for inventory price decline is 27.3 billion yuan, 16.5 billion yuan, 13.1 billion yuan, a significant decrease.
Peacebird said that the improvement of inventory management is mainly due to the strengthening of commodity production and marketing planning management, so that the inventory of new products in the current year has been gradually optimized, and at the same time, the digestion and processing of old products out of season have been strengthened.
Equity incentives may meet the target again
In October 2021, Peacebird issued the "Ningbo Peacebird Fashion Apparel Co., Ltd. 2021 Restricted Incentive Plan (Draft)", which shows that the company intends to grant 552580,000 restricted** shares, no reserved portion.
The restrictive ** restriction period granted by the incentive plan is 12 months, 24 months, and 36 months from the date of completion of grant registration, and the proportion of lifting the restriction in each period is %, respectively, and the performance appraisal year involved is from 2021 to 2023, and the performance conditions for lifting the restriction are that the year-on-year growth rate of operating income or net profit in the assessment year is not less than 15%, for example, the performance appraisal target of the third release restriction period is "based on net profit in 2022, The net profit growth rate in 2023 shall not be less than 15% or based on the operating income in 2022, the growth rate of operating income in 2023 shall not be less than 15%".
From 2020 to 2022, Peacebird's operating income was 938.7 billion yuan, 1092.1 billion yuan, 860.2 billion yuan, the year-on-year growth rate was respectively. 34%、-21.24%；Net profit was 70.7 billion yuan, 67.7 billion yuan, 18.4 billion yuan, with a year-on-year growth rate of 3013%、-4.25%、-72.76%。
According to the operating performance, Peacebird stepped on the performance assessment target in 2021, but failed to meet the target in 2022. According to the performance pre-increase announcement, Peacebird may exceed the performance appraisal target in 2023.
The textile and apparel sector is actively trading
Peacebird is the first company in the textile and apparel industry to release a 2023 performance forecast, the next day after the announcement, the textile and apparel sector was actively traded, and many shares of stock prices **, in addition to Peacebird, Shenzhen China A (000017SZ), leading shares (600630SH) stock price is up and down.
From 2020 to 2022, the operating income of Shenzhen China A was 11785750,000 yuan, 16,524660,000 yuan, 44476220,000 yuan, the year-on-year growth rate was respectively. 51%；The net profit was 437570,000 yuan, -163960,000 yuan, -798230,000 yuan.
Shenzhen China A has been losing money for two consecutive years, and according to the third quarter report of 2023 that has been announced, Shenzhen China A will achieve operating income of 34,850 in the first three quarters of 2023260,000 yuan, a year-on-year increase of 13364%, net profit 613050,000 yuan.
The independent brand business of the leading shares includes the operation of knitting, clothing and home textile products based on brands such as three guns, elsmorr, and goose brands, and the traditional sales season is autumn and winter, and the company's core products are three guns of underwear.
The foreign trade business of the leading shares is mainly to undertake international orders, and the export business has formed three modes of processing with supplied materials, processing with imported materials and general **, and has formed a certain scale controllable production base, with the main markets being Europe, America, Japan, Southeast Asia, Hong Kong, etc.
From 2020 to 2022, the operating income of leading shares was 325404280,000 yuan, 294949930,000 yuan, 219436220,000 yuan, net profit was -29145740,000 yuan, -30321480,000 yuan, -52206240,000 yuan. In the first three quarters of 2023, the loss of leading shares narrowed significantly, with a net profit of -191760,000 yuan.