No loss to Mido and Semir casual wear Giordano’s increase in shareholding by major shareholders

The news of Giordano’s acquisition has not yet been exhausted, and news of the increase in holdings by major shareholders has again hit.

Recently, New World Development Cheng Yu-tung once again increased the holding of Giordano International's 2 million shares at the venue. The average stock price per share was 6.43 Hong Kong dollars, involving a total investment of 12.86 million Hong Kong dollars, while the proportion of Zheng’s holding long positions also increased from 19.15% to 20.09%. It consolidated its position as a single major shareholder.

The relevant person in charge of the Giordano Investor Relations Department and the New World Development Insider all told the reporter that Mr. Zheng’s increase in his shareholding was his personal act and it was inconvenient to comment on this.

Chong Consultant light industry researcher Xiong Xiaokun said that in recent years, Giordano has increased the layout of the mainland China market, the rapid expansion, coupled with rising raw materials, labor, logistics and other costs this year, making it start to face a certain cash flow pressure, Zheng Yuxi's increased holdings Conducive to the cash flow pressure.

In the past few months, Giordano has been in the rumor of being acquired, among which the Japanese fast-moving apparel brand Uniqlo and the parent company INDITEX Group, the parent company of ZARA, the world's largest apparel group, have all rumors with Giordano. However, it seems that Zhengzhou Yu, the controller of New World Development Chairman and Chow Tai Fook, further gripped Giordano at the same time as this “sweeping scandal”.

In May of this year, Cheng Yu-Tung purchased a total of 218 million Giordano in OTC transactions through its wholly-owned Chow Tai Fook, equivalent to 14.58% of the issued share capital of this stock, and the average transaction price per share was 4.81 HKD. The funds involved amounted to 1.05 billion Hong Kong dollars. On June 21st, 16.3 million Giordano shares were bought at an average price of 6.65 Hong Kong dollars per share, and Cheng Yu-tung’s shareholding ratio increased to 19.15%.

After the acquisition, Zheng’s position ratio has reached 20.09%, and Giordano’s second to fourth shareholders are institutional investors, so no one can shake Zheng’s position.

For Giordano, who has a tight cash flow, every increase in Cheung Yuk’s shareholding has caused his stock price to soar. On the same day when it first joined the stock market in May, Giordano’s share price rose 3.67% against the market, and this small increase in holdings caused Giordano’s share price to soar by 5.68% on September 15 to close at HK$6.14.

Zheng Yuxi had previously publicly stated to the media that Giordano as a long-term investment does not rule out that if the price is right, he will increase his stake to over 30%.

Some industry insiders told reporters that Zheng Yuxi’s increasing holdings can be described as justified. “Although Giordano achieved good performance for half a year, he still lags behind his major competitors, Mebon and Semir, and holdings can both stabilize stock prices and supplement cash. flow."

In the interim results announcement released by Giordano recently, Giordano Group’s interim sales revenue was HK$2.649 billion, an increase of 24% from HK$21.3 million in the same period last year, and Giordano’s interim net profit was HK$346 million.

After reviewing the interim results of Meibang Clothing, the reporter found that the operating income of Smith Barney for the first six months of the year was 3.795 billion yuan, an increase of 49.31% year-on-year; and that of Semirwear also reached 3.009 billion yuan, a year-on-year increase of 36.64%.

Industry analysts believe that because Giordano's leisure apparel industry has two distinctive features: rapid change in customer demand and high cost constraints, which requires companies to respond quickly to changes in customer demand, but at the same time to meet these costs at a lower cost Demand, "Giordano's ability to organize and operate in this area remains to be improved."

Some analysts also believe that Giordano needs to further expand its sales channels, such as strengthening cooperation with distributors, wholesalers, and authorized manufacturers, or speeding up the operations of online businesses, while Giordano’s overall rate of return is low. Inefficient use has also become a factor restricting its development.