Daphne Wish logistics assets integrated into problems

Recently, Daphne International (00210.HK) Chairman of the Board Chieh in the “Forbes” interview revealed, the ongoing acquisition negotiations, are interested in the acquisition and logistics-related assets. Chen Yingjie said that in China there is the opportunity to acquire logistics assets, Daphne will acquire any target and “business related.”

fact, Daphne in 2002 began to spare no effort to self-built logistics system, covering more than 30 provinces, municipalities, and formed a long-distance distribution to the city, a short delivery to the store logistics and distribution center.

industry analyst at Guotai Junan International Clothing Cheung Pang Hong Kong, said in an interview with reporters, Daphne and rare move, is for their own development needs. “When bigger shoe size after facing manpower and logistical challenges, especially as Daphne this year to maintain more than 20% annual sales growth of enterprises, logistics must keep running fast.” Daphne 2011 sales amounted to HK $ 8.6 billion, an increase of 29%.

According to Peng Hong Xiang introduction, Daphne overwhelmed by the move, but also to accommodate its transformation into a sales-oriented model. It is understood that Daphne had produced products are the first to look at the sales, once the sales decline, they put stocks sell at a discount, which is a direct result of the decline in gross profit margin Daphne.

It is reported that in 2010, Daphne began to rival Belle “steal the division”, in order to ensure timely updates in store merchandise, reduce inventory costs and increase delivery speed, the product produced, directly to the country, in the regional distribution centers aggregated through a unified logistics center delivery. Peng Xiang told reporters in Hong Kong, Daphne transformation into a sales-oriented mode, the gross margin would have been significantly improved, from HK $ 3.8 billion in 2010 jumped to 5.2 billion Hong Kong dollars.

the other hand, subject to the sluggish economic environment, this year’s overall impact, shoe huge pressure on the stock, but also makes the shoe sales positive change in the original model. According to Daphne 2011 Annual Report, the amount of inventory from 10.84 million in 2010 rose to 2.059 billion Hong Kong dollars.

Investment Advisor in the light researcher Zhu Qing Hua analysis, “Daphne inventory pressure, thus intentionally slowing down the rate of expansion shop, in order to reduce operational risk. These extra funds for investment in the logistics chain, not only conducive to the logistics system more smoothly, but also conducive to better allocation of corporate funds. ”

However, Peng Hong Xiang believes that Daphne Although this will help to further improve the logistics system, but the face of Daphne already has a logistics system integration difficulty is still large. And Daphne respect for the acquisition matters under negotiation, still unsure next plan, the effect remains to be seen.

talking about Daphne earnings outlook, ZHU Hua believes that this year China’s development will not be too optimistic about the shoe, while the domestic economy is still remains in the doldrums, the overall development of the shoe facing great pressure; the other hand, labor, logistics, shop rental costs continue to rise, the cost of shoe facing great pressure, especially small and medium sized shoe, the pressure to survive will face great challenges.