Semir’s acquisition of Korea SE market now why not buy it

recently, the traditional garment industry to seek the story of industrial innovation frequently staged.

In addition to Semir

apparel announced equity Korea business ISE, guirenniao also recently announced the investment of 20 million euros acquisition of Spanish football economy company "BOY"; previously, Carolina textile and "Thai" signed a strategic cooperation, to jointly research and production of smart bedroom products; search in particular to 324 million yuan of its own funds strategic stake in the Amoy brand clothing department of the United States, the United States holds 25.2% of the total equity of clothing.


about clothing industry in recent years, insiders said, "the development of China garment enterprises in the first stage, from 90s to 2010 of last century, the stage of the apparel industry showed a demand driven background, market demand, the emergence of a lot of brand; the second stage from 2010 to 2014, due to the industry – boom many enterprises are entering the industry, traditional clothing consumption channels by street shops and shopping malls evolved into a business platform and the shopping center formats, this is a competition era. Small scale, local brands will gradually withdraw from the stage in the competition, the garment industry into a centralized, personalized era."

on the capital market, in July 17th last year, more than 3 months of suspension hundred round pants industry resumption, announced that intends to 1 billion yuan acquisition of a wholly-owned Tesco global cross-border electricity supplier, the expansion of the online business. After the resumption, the stock price continued skyrocketing hundred round pants industry, winning the 7 limit.

in contrast Semir clothing, resumption of the stock index has completely ignored the A hit a new high, the stock price did not rise sharply. The same is the investment in cross-border electricity supplier, Semir clothing and hundred round pants industry in the end of


first look at the investment background. In a wholly owned acquisition of universal Tesco, net profit per round pants industry fell 23.78% and 40% respectively in 2012 and 2013 year. Hundred round pants industry was clearly said that the acquisition is to find new profit growth point, the acquisition of universal Tesco to help build its online and offline resources linkage, digital marketing and supply chain optimization combining domestic three-dimensional cross-border collaborative apparel retail ecosystem.

Semir announced before the investment, operating results in 2014 operating income of 8 billion 147 million yuan, an increase of 11.70%, net profit of $1 billion 92 million, an increase of 21.09%. Meanwhile, the company’s 2014 fiscal year, up to $4 billion in cash.

look at the amount of investment. Semir invested 115 million yuan shares of ISE, even the future for the establishment of joint venture company invested hundreds of millions of dollars, compared to the company’s account of liquidity, the investment is only a drop in the bucket. But one hundred round pants industry in the acquisition of 100% stake in Tesco global, the company is in the net to accelerate the decline stage, for the investment of 1 billion yuan, the market there have been many voices questioned the high premium.

finally see the investment effect. In October 2014, one hundred round pants industry Tesco global completion of the acquisition, by merging the global Tesco.

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