On October 30, 2021, Weixing Co., Ltd. (002003) issued an announcement that: Sunshine Insurance Fangyuan, Xinpu Investment Guijiang, Shanghai Guotai Junan Asset Management Xiao Ying, CITIC Securities Feng Chongguang, CITIC Securities Wang Yanan, Orient Securities Shi Hongmei, Orient Securities Zhao Yuefeng, Yansheng China Fu Yu, Yansheng China Peng Junbin, Industrial Securities Global Fund Tong Lan, China Life Security Fund Song Yilu, Baoying Fund Chen Ruojin, Baoying Fund Hong Qi, GF Securities Asset Management Wang Sha, Tianying Fund Meng Hui, Yongchang Securities Hu Tianya, Chen Wenfei of Huaxia Life Insurance, Chen Xiaofen of Changyuan Asset Management, Li Kejing of Red Pomegranate Asset Management, Song Chengcheng of Tongfang Yiheng Fund, Wang Bingqian of Yingke Innovation Asset Management, Zheng Chunming of Ping An Life Insurance, Wang Nan of PICC Hong Kong Asset Management, Yu Zhonghua of China Overseas Fund, Ma Qiwen of Essence Securities Asset Management Department, Hu Yunpeng of Orient Securities, Wang Shujuan of Orient Securities, Liu Jie of Ping An Dahua Fund, Peng Bangtai of Huatai Berry Fund, Ouyang Haoyu of Jianxin Pension, Chen Wen of Industrial Securities, SomersetLilian Tai, Everyone Assets Qian Yi, Gopher Asset Tian Yiling, ICBC Credit Suisse Qin Cong, Huaan Fund Zhang Luan, China Merchant Fund ChangNing, Mars Asset Fan Weiwen, Harvest Fund Wu You, Jushan Asset Li Xiaozhen, Taixin Fund Chen Yining, CMB International Dai Xiaoxi, Tangrong Investment Yang Zhiyu, Silver Shark Investment Wu Wenqiao, Sunshine Insurance Sun Dong, Ceibus Fund Liu Weiwei, Yuanhao Investment Zhang Wei, Xinpu Investment Li Lei, Xinpu Investment Zeng Xuwei, Xinpu Investment Jiang Rui, Sunshine Assets Wu Yelin, ABC Huili Fund Zhou Yu, Zhongying Yili Suhui, Ningyin Wealth Management Liu Ye, Shengang Securities Weng Jiali, One01 James Zhang, Huaxia Future Capital Zhang Liqi, Huaxia Future Capital Wang Yinuo, Huaxia Future Capital Yang Jun, Panjing Investment Qin Jinfeng, Shanghai Guotai Junan Asset Management Yang Kun, Taiping Asset Management Zeng Mengya, Rongtong Fund Sun Weidang, Guandao Asset Management Wu Yutong, Quartet Capital Cai Han, Zhonggeng Fund Chen Tao on October 29, 2021 to investigate our company.
The main contents of this survey are:
Q: What is the reason for the improvement in the company's gross profit margin?
Answer: There are mainly the following reasons: first, the embodiment of scale effect; second, thanks to the company's refined management, focusing on intelligent manufacturing, so as to achieve cost reduction and efficiency; third, due to the large increase in raw material prices, the company has made a moderate price increase in some products.
Q: Is factory production affected by power curtailment and production restriction policies?
Answer: The power cut and production restriction policies have a greater impact on printing and dyeing enterprises, which will have a joint impact on the apparel industry, so there will also be a possibility of indirect transmission to the apparel accessories industry. From the company's own point of view, the current government's power rationing has little impact on the company's production and operation, and it can meet customer requirements through the reasonable allocation and adjustment of the order production cycle.
Q: What are the company's expectations for the future?
A: In terms of buttons, the company has been the industry's largest comprehensive production and marketing scale of enterprises; zipper, started late, mainly born from the button customer group, to the high-end strip zipper-based, service to clothing brand customers, has been expanded to bags, sports and leisure products and other fields, has now developed into the largest scale of domestic strip zipper scale enterprises. With the improvement of its comprehensive competitiveness, the company's leading position in the industry will continue to strengthen. Apparel and luggage accessories industry As a subdivision of the daily consumer goods industry, the market demand exists, and the company will maintain a steady growth trend. In addition, it should be noted that the amortization of expenses formed by this equity incentive plan may affect the company's profit in individual years.
Q: What was the revenue of overseas business in the third quarter?
A: The company's performance at home and abroad in the third quarter was good, of which the revenue growth rate of overseas business was faster than that of domestic business.
Q: What is the competitive landscape of the industry?
Answer: Clothing accessories are non-standardized products, with obvious seasonal and fashion characteristics; there are fewer large-scale enterprises, more workshop-style enterprises, and fierce market competition. With the continuous development of downstream brand clothing enterprises, the requirements for upstream suppliers have gradually increased, so that the industry concentration of apparel accessories is also further improved. After years of development, the company has formed a strong comprehensive competitiveness, and the market competitive advantage is more obvious.
Q: What is the market share of the company and YKK?
A: Since apparel accessories belong to the branch industry of textile and apparel, industry statistics are relatively lacking, and accurate data cannot be obtained. From the perspective of sales scale, there is still a certain gap between the company and YKK, but the two companies have their own advantages.
Q: What are the company's advantages over YKK?
A: Compared with this, the biggest gap lies in the accumulation and popularity of the brand. However, the company's zipper has formed a strong comprehensive competitive advantage in terms of diversity of product categories, fashion, novelty and innovation ability of styles, rapid response to the market and sales service, and production guarantee.
Q: How is the company's cooperation with emerging companies such as Xiyin?
A: The company and Xiyin are still in the early stage of contact, and have not yet formed an influential revenue. The company's production model is to set production single, while the new retail model requires suppliers to carry out a certain inventory, which requires the company to adjust the production mode. The company is optimistic about the future development prospects of Xiyin and the new retail model, and is also actively exploring and thinking about the future layout.
Q: What is the company's share of luxury brand customers?
A: At present, the company's share of luxury brand customers is relatively small, and the overall cooperation trend is better. With the deepening of cooperation between the two sides, the company's comprehensive competitive strength has gradually been recognized by customers, and the number of orders will also increase. The whole process takes a certain amount of time to implement.
Q: What was the sales growth of buttons, zippers and other clothing accessories in the first three quarters?
A: The overall revenue in the first three quarters increased by 30.54%, zippers and buttons basically maintained a growth rate of about 30%, and other clothing accessories showed a significant growth trend due to the small base, mainly due to the expansion of new categories such as webbing.
The main business of Weixing Co., Ltd.: resin buttons, natural material buttons (wood buckles, real shell buckles, fruit buckles, horn buckles), laser engraving buttons, injection buttons, metal buckles, ABS electroplated buckles and other types of buttons and zippers and other clothing accessories production and sales.
Weixing shares 2021 third quarter report shows that the company's main revenue of 2.371 billion yuan, up 30.54% year-on-year; net profit attributable to the mother of 399 million yuan, up 15.55% year-on-year; deducted non-net profit of 388 million yuan, up 79.3% year-on-year; of which in the third quarter of 2021, the company's single-quarter main revenue of 888 million yuan, up 29.13% year-on-year; single-quarter net profit attributable to the mother of 163 million yuan, up 65.4% year-on-year In a single quarter, the non-net profit was 156 million yuan, up 64.32% year-on-year; the debt ratio was 31.99%, the investment income was 10.2772 million yuan, the financial expenses were 8.5161 million yuan, and the gross profit margin was 40.54%.
A total of 5 institutions have given ratings in the last 90 days, 4 buy ratings and 1 overweight rating; the average target price of institutions in the past 90 days is 10.58; the Securities Star Valuation Analysis Tool shows that Weixing Shares (002003) good company rating is 3 stars, good price rating is 3 stars, and valuation comprehensive rating is 3 stars.