How long does Youngor persist after consuming fat?

Younger seems destined to become a model for the transformation of China's manufacturing industry. However, under the conditions of rapid capital growth, how long will Younger's success last?

“In the capital market, the largest addition to the fertilizer jacket was worn, but the skeleton of the body was still small. Although equity investment and real estate injected the fastest fattening factor, it is regrettable that the fat increase is more fat than muscle. ."

This is a comment of Younger on the outside world after Youngor's frustration with the stock market and real estate market in 2008. Li Rucheng, who had been relying on clothing, equity investment and real estate "troika," did not expect to encounter "Waterloo" in 2008. Because of the mistakes in equity investment, Youngor's 2008 net profit fell by 36.05% year-on-year, and provision for impairment losses on assets increased 6254.33% year-on-year.

If you use the word "frustrated" to summarize Younger's last year, by 2009, Youngor seems to have restored its former glory. Since the beginning of 2009, the stock market and property market have been flying together, and Youngor has made "a heavy blow" in equity and real estate investment. In June and July, Youngor won a piece of land in downtown Ningbo with 8,707 yuan/square meter, and won the title of “land king”; invested 180 million yuan in Zhejiang’s first domestic property insurance company—Zheshang Property Insurance Co., Ltd. Invested 590 million yuan to subscribe for 42.9 million shares in the first public offering (600376.SH) non-public offering of shares, which accounted for 3.73% of the total share capital after the first public offering of shares in non-public offerings...

Is this "won't you forget the pain," or is Younger's new round of growth begun?

“From our research, the sales of the company's real estate before the Spring Festival were not very good, but after March, the company was not as pessimistic as it was before, and we saw that the capital market was getting better this year and it began to participate. This round of investment is still The continuation of the strategy.Overall, the company is optimistic about the market and the entire macro economy." A brokerage researcher who recently went to Youngor research told the "talent" reporter.

This may just be superficial. Behind the large equity investment by Youngor, the local investment environment in Zhejiang is a topic that cannot be circumvented. In the corporate world of Zhejiang, a new trend is that capital investment has become the new darling, but like IPO, private placement and other investment, the threshold is high, generally only large companies such as Youngor qualified, of course, this is not so simple.

“Many big companies in Zhejiang have the game of tractors when investing.” A Zhejiang local entrepreneur revealed to the “talent” reporter. The so-called investment “truck” is a large company dragging a number of unqualified small companies to buy investment targets in the name of a large company, and finally reselling a portion of the equity to a small company at a price higher than the purchase price. In Zhejiang, this type of money-making and risk-free model is very popular. “Yangalor does not know whether or not to do so, but does not rule out this possibility.” The entrepreneur said.

In fact, although equity investment is one of Youngor's "troikas," it is sometimes seen more as a "sideline business" because of the volatility of the securities market. “Yagor, in terms of business, is mainly textile and apparel and real estate,” the researcher said. As a young man who started as a traditional textile and clothing industry, real estate business has become the focus of the company's growth with the expansion of the real estate market in recent years.

“From the perspective of our research, the company has spent a relatively long period of time on textiles and clothing, has a complete, self-sufficient industrial chain, and has a relatively flexible internal operation. It does not need to invest too much money, but its profit margin is relatively low. It can provide a stable cash flow for the company, and the real estate business needs more money than textiles and clothing."

In the first quarter of 2009, Youngor Real Estate made a profit of 1.5 billion yuan and net profit of 134 million yuan. Haitong Securities predicts that the annual real estate business income of Youngor will reach 4.39 billion yuan, and net profit will be 966 million yuan, equivalent to 0.43 yuan per share.

In fact, this round of Youngor's uptrend is still driven by real estate business, the company's real estate is the regional leader. "The company will rely more on the development of the real estate industry in the later period," the researcher speculated.

However, when the future growth accumulates, the risks also come together. In the first half of 2009, under the easing of macroeconomic policies, the national real estate market rebounded strongly. The real estate markets in major cities in China all greeted rising prices and prices. Some cities’ real estate prices have even reached or exceeded 2007’s The highest level. Such spurt has also attracted people's concerns about the property bubble. In fact, the regulation of the real estate market has begun.

“Yangor was once again a 'king of the king' at this time. In fact, the risk is very big, and it is a bit like a bloody knife. Younger seems to have always been like this, and the challenge is always its own limit.” The entrepreneur said.