Bagir Share Discussion Threads

[moneymunch] 30/10/2018 08:37

Bagir's medium and long term prospects with Ruyi on board will be transformational for all concerned and will no doubt propel Bagir into the big time as the US market is expanded and the Chinese markets are opened, but near term, confirmation of Chinese regulatory approval and the receipt of the full $16.5m cash will see Bagir's share price re-rate significantly imho as Bagir embarks on its one way trajectory from small cap tiddler to mid cap leading player. Gl ;-)

ps One day closer to transformational deal news, expected "shortly"......end of month or start of month would be timely??? ;-)

[moneymunch] 28/10/2018 08:05

ps it's not only me that views the Ruyi deal as "transformational"......DYOR.....Gl ;-)

CEO Eran Itzhak said: “Alongside our trading performance which reflects the investment we have been making in expanding our Ethiopian production capacity, we have made significant progress since the year end with the strategic partnership with Shandong Ruyi. [This will] support the growth of the business, in particular the expansion of the Ethiopian manufacturing site. This investment together with being in partnership with Shandong Ruyi will undoubtedly be transformative for Bagir.”

[moneymunch] 28/10/2018 08:01

Lol....i invested £26k in Ukog c1p where i highlighted their potential during the stellar rise in share price to double figures contrary to the opinion of the lowlife detractors at that time....Ker-Ching, and was in and out of Bloc briefly ( their RTO will happen, and those invested will do well when it does ) and now have c£60k invested here and am expecting double figures in the coming months, and a sudden and significant re-rate when the Ruyi deal and receipt of $16.5m is finally confirmed....Tick Tock BOOM!!! Gla Holders....FILL YA BOOTS from this current bargain low.....Bagir is all set for the big time under Ruyi's direction and influence. ;-)



21/9/18

The Directors believe that the investment by Shandong Ruyi, which will be targeted directly at expediting the development and expanding the manufacturing facility in Ethiopia, will significantly accelerate the timetable for the operational potential in Ethiopia to be realized, enabling the facility to attract and compete for major apparel manufacturing contracts from large international retailers which generate a level of return acceptable to Bagir. After the Shandong Ruyi investment into Bagir closes a strategic partnership will be formed between the Company and Shandong Ruyi. The Directors believe that Shandong Ruyi, as a result of its significant international textile and retail investments, is well positioned to provide the Group with significant new commercial opportunities, especially in the fields of fabric design and development, and technical innovation.

The Directors also believe that the strategic partnership with Shandong Ruyi will increase the Company's own profile and reputation which should, in turn, increase customer interest in the Group and, in particular, its Ethiopian manufacturing facility. Shandong Ruyi has committed to evaluate ways in which it can provide additional operational support to Bagir. The Directors believe that the knowledge and expertise of Shandong Ruyi and the directors it proposes will join our Board will improve the Group's operations and trading performance.

[the lah] 28/10/2018 07:46

My oh my..... Moneymunch.... Not to be trusted.... Exactly the same posting pattern as UKOG and BLOC.... both are very poor indeed..... Like that you've put in one of your stock words "transformational" in..... all be wary..... lots of posts then disappears to the next pump!

[moneymunch] 28/10/2018 07:33

21/9/18

Operational review

The Group continues to evolve its recovery plan, which commenced in 2016, comprising a cost reduction strategy and an operational strategy. The Group continues to make good progress reducing operating costs across the business. As announced on 20 November 2017, following a review, the Group identified opportunities to reduce the Group's overall operational cost base by approximately $2 million on an annualised basis. This programme was anticipated to be implemented in full during 2018.

Following further review of the Group's operations the Company has identified further scope to increase the cost reduction programme further to approximately $5.0 million of annualised cost savings in total. This is to be achieved by reducing the number of production sites from 6 to 5, increasing the focus on the Group's largest market, the USA, together with a range of further rationalisation initiatives. The expanded cost reduction programme has commenced and is expected to complete by the end of the first quarter of 2019.

The Group is focused on its three core manufacturing geographies in Vietnam, Egypt and Ethiopia. These three manufacturing facilities, in particular Ethiopia, over the medium-longer term, give the Group a competitive advantage in the production of textiles for export to the EU and US. This competitive advantage is centered on the facilities benefiting from duty free status for sales into the EU and US (except Vietnam), highly competitive production costs and local government support for the textile industry. The Company intends to reduce the number of third party production sites in Vietnam from three to two, it will continue to manufacture from its wholly owned site in Ethiopia and from its 50:50 joint venture and subcontractor in Egypt.

The Company signed a lease extension in August 2018 for the building and its facilities for the Group's 50:50 joint venture manufacturing facility in Egypt, from May 2020 to July 2022. The Company has also signed a sub-contracting agreement with its Egypt joint venture partner, for additional production capacity in the Egypt joint venture partner's wholly owned Egyptian manufacturing site, locking in capacity and production costs for 500 suits and 200 trousers per working day from 2019 until July 2022. These developments will ensure the Group's ability to fulfill volume orders from the USA from this duty free country, at competitive prices, supporting the USA market growth strategy.

The site in Ethiopia which the Group now owns in its entirety is considered by the Directors to be fundamental to the future growth prospects of the Group. The Ethiopian facility produces suit trousers, with a current production rate of approximately 2,500 trousers per day, which is expected to grow to 3,200 trousers per day by the end of the year.

The USA is the Company's largest market and the Company will increase its focus on the USA where the average transaction size is larger.

[moneymunch] 27/10/2018 11:27

Dividend Policy

The Board intends to adopt a progressive dividend policy to reflect the expectation of future cash flow generation and the long-term earnings potential of the Company.

Based on the above expectations, the Directors intend that the Company will (in accordance with the provisions of the Companies Law) pay dividends annually, made up of an interim dividend and a final dividend to be announced at the time of the interim and final results in approximate proportions of one third and two thirds, respectively, of the total annual dividend.

The Board may revise the Company’s dividend policy from time to time in line with the actual results of the Company.

Under the terms of the Debt Agreement with Bank Leumi and Discount Bank, the Company has that, except with the consent of Bank Leumi and Discount Bank, the aggregate amount of dividends which it will distribute in relation to any particular financial year will not exceed 55 per cent. of the annual net profits, save that the figure in relation to the financial year ended 31 December 2014 shall not exceed 70 per cent. (instead of 55 per cent.).

[moneymunch] 27/10/2018 11:16

Courtesy of Absolute on Lse. Gla Holders...Tick Tock Boom!!! ;-)

Bagir - Next Steps

As disclosed in our notice of EGM and Circular announcement on 3 September as well as in the EGM voting forms, the appointment of the proposed directors on behalf of Ruyi will be effective upon Admission.

Regarding your questions about the expected use of proceeds for the investment in Ethiopia and the potential synergies, this was also detailed in the circular and announcement on 3 September, and inter-alia:

The Directors believe that the Proposed Investment, by one of the largest textile manufacturers in China, reaffirms their view that the Group's first mover advantage in Ethiopia is potentially transformative to its medium-to-long term prospects.

The Directors believe that the restructuring initiatives taking place across the Group will better place the Group to take advantage of the Proposed Investment and the commercial synergies that the strategic partnership with the Shandong Ruyi Group will offer.

The majority of the Proceeds are expected to be used to expand the Group's existing manufacturing facility in Ethiopia.

The Directors have identified that some funds will be used to significantly expand the suit trouser production line and to establish a jacket production line.

The Proposed Investment will increase the Ethiopian facility's ability to produce large volume and high value orders.

The Directors believe that the expansion of the Ethiopian facility will enable the Group to take advantage of the interest in the facility from international retailers and improve its ability to compete and win major apparel manufacturing contracts.

Regards,
Bagir Group Ltd.
www.bagirgroup.com

[moneymunch] 26/10/2018 08:14

Bagir's current sales revenues are c $50m a year, and the following highlights the previous 6 months revenues as well as the potential significant increase in US sales and profit as production is ramped up at the duty free Ethiopian factory , Bagir also have factories in Vietnam and Egypt......the Chinese market could be bigger again with Ruyi on board.....Transformational deal news coming soon... Gla :-)


Bagir in H1 loss, is upbeat for US growth after Shandong Ruyi investment

21 September 2018

London-listed tailoring specialist Bagir Group on Friday reported lower revenues for the six months to June 30 and said that it swung to a loss as higher production costs hit its bottom line.

Its revenues dropped to US$24.8 million, in line with management expectations, from $28.1 million. Its adjusted Ebitda loss was $1.7 million, after it made a profit of $1.1 million a year earlier. Meanwhile, the gross margin of 6.7% plunged from 16.4% a year earlier.

But the company is working hard to improve its operations and, apart from its recently-announced plan to sell a majority stake to Shandong Ruyi for $16.5 million, it has “identified and commenced a rationalisation of operations, focusing on fewer production sites and a reduction in the operational cost base,” that should save $5 million a year.

CEO Eran Itzhak said: “Alongside our trading performance which reflects the investment we have been making in expanding our Ethiopian production capacity, we have made significant progress since the year end with the strategic partnership with Shandong Ruyi. [This will] support the growth of the business, in particular the expansion of the Ethiopian manufacturing site. This investment together with being in partnership with Shandong Ruyi will undoubtedly be transformative for Bagir.”

But what exactly happened in H1? The company “had a positive sales performance in line with management's expectations.” But the group “has continued to experience operational delays and increased production costs which have reduced profitability and gross margin,” it said.

Looking ahead, it expects “an increased focus on the US market, due to the large order sizes and the existing competitive advantage of the group's manufacturing locations as a result of being able to export goods into the US duty free.”

[moneymunch] 22/10/2018 20:11

Not too long to go before the Chinese market will be wide open to Bagir...Tick Tock Boom!!! :-)

The partnership will also see Ruyi and JD expanding their existing efforts to bring Ruyi’s portfolio brands to JD’s over 300 million customers. Ruyi already operates several flagship stores on JD.com, including Cerruti 1881, Kent and Curwen, and D’Urban, and will add stores for Sandro, Maje, Aquascutum, and its other brands on JD’s platforms.

Commenting on the partnership, Yafu Qiu, chairman of the board of Ruyi Holding Group, said in a press release: “This wide-ranging partnership agreement will help upgrade Ruyi’s capabilities across the online and offline spectrum. JD’s unrivalled expertise in e-commerce and advanced logistics capabilities makes it a great partner for Ruyi as we take a world class fashion group into the future.”

[moneymunch] 22/10/2018 09:25

Bagir next in line. Gla :-)


Gieves & Hawkes launches on JD.com

19 OCTOBER 2018BY GRACE WHELAN

Full screen

Menswear brand Gieves & Hawkes has launched on JD.com.

The bespoke British brand is part of Trinity Group, a leading menswear group based in Hong Kong, owned by Ruyi International Group. 

JD and Ruyi recently entered into a strategic agreement, focusing on fashion technology and a joint sponsorship of the British Fashion Council/GQ Designer Menswear Fund.

Vice-president of Ruyi International Group, Qiang Cui, said: “JD’s experience in marketing international brands to China’s most stylish consumers makes it the perfect partner in Ruyi’s mission to cement our place as a world-leading fashion group with the most recognisable brands.”

[moneymunch] 19/10/2018 10:21

Lol...Share Code 1 and 500!!! Gla :-)

[moneymunch] 19/10/2018 08:20

9/10/18

The Board looks forward to updating the market on the completion of the Proposed Investment shortly.

Eran Itzhak, Chief Executive Officer of Bagir, said, "As we expected, today's EGM has confirmed that shareholders of Bagir are strongly supportive of Shandong Ruyi, the global textile manufacturer and retailer, investing $16.5 million into the Company to become the majority shareholder and close commercial partner. The future potential of Bagir has as a result been significantly expanded and as a management team we are looking forward to developing the business alongside our new global partner."

[moneymunch] 18/10/2018 18:28

Lol...it's coming kk..."shortly"....:-)

[k1ngkonggb] 18/10/2018 14:56

I'll believe it when I see it!!!!

[moneymunch] 17/10/2018 06:42

Transformational deal news fast approaching....Significant re-rate more than likely. Gla holders,Bagir is all set for the BIG TIME under Ruyi's influence and direction. ;-)

[moneymunch] 16/10/2018 05:36

Huge growth potential for Bagir. Gla ;-)


JD.com signs “boundaryless retail” tech deal with Ruyi

JD.com, China’s largest retailer, has confirmed that it has signed a strategic agreement to provide e-commerce technology to Ruyi, the owner of global fashion brands including Aquascutum, Cerruti 1881, Sandro and Maje.

In a press statement, JD stated that it will deploy its full suite of “boundaryless retail” technology, including smart logistics, supply chain solutions, big data-enabled inventory management, and membership systems to establish a retail management system for Ruyi’s subsidiary brands.

In addition, Ruyi will also deploy JD’s virtual and augmented reality shopping technology in its brick-and-mortar stores, to offer customers a seamless shopping experience.

The companies will also jointly build fashion and lifestyle “future of retail” concept stores in Beijing and Shanghai first, to showcase JD’s smart retail technology as part of JD’s ‘Retail as a Service’ strategy, where it offers its technology and infrastructure to retailers and brands.

The partnership will also see Ruyi and JD expanding their existing efforts to bring Ruyi’s portfolio brands to JD’s over 300 million customers. Ruyi already operates several flagship stores on JD.com, including Cerruti 1881, Kent and Curwen, and D’Urban, and will add stores for Sandro, Maje, Aquascutum, and its other brands on JD’s platforms.

Commenting on the partnership, Yafu Qiu, chairman of the board of Ruyi Holding Group, said in a press release: “This wide-ranging partnership agreement will help upgrade Ruyi’s capabilities across the online and offline spectrum. JD’s unrivalled expertise in e-commerce and advanced logistics capabilities makes it a great partner for Ruyi as we take a world class fashion group into the future.”

[moneymunch] 15/10/2018 10:23

APPAREL

Ethiopia Wants China to Help Boost Its Textile Manufacturing Industry

A special adviser to Ethiopian Prime Minister Abiy Ahmed said in an interview that recruiting China for help will be crucial for boosting its growing textile manufacturing sector.

This is something we've touched on before—countries outside of the usual manufacturing hubs (like China and Vietnam) are increasing their presence in the international textile manufacturing game, and Ethiopia is high on that list. What's new is the way Ethiopian officials are being so up-front about their need for China, a perceived competitor, to help them get there.

According to the interview with Xiinhuanet, the adviser, Arkebe Equbay, said that China could help Ethiopia hit $30 billion in revenue from textile manufacturing in 10 years.

[moneymunch] 15/10/2018 09:13

Transformational deal news fast approaching....Gla holders...On and Up!!! :-)

[bignads] 12/10/2018 10:42

Looking back at the earlier transfers of deposit money from Ruyi to Bagir, it appears as though clearance took approx. 30 days. However, that was at the beginning of the process and all the documentation would have had to have been drawn up and submitted from scratch. In this case, the wheels were already in motion. I would expect the money to have been received by Bagir by the end of this month, possibly sooner.

[moneymunch] 12/10/2018 10:22

"focuses its energy on bringing those acquired brands to China".......Ker-Ching!!! :-)

[moneymunch] 12/10/2018 10:19

After some past difficulties, Bain stressed that Chinese companies are learning as they go and making smart adjustments when buying up foreign enterprises.

The report noted that companies are avoiding mistakes by being more rigorous and strategic in how they approach foreign acquisitions as well as more skillfully dealing with cultural issues.

"In the past, many Chinese acquirers assumed that they would need to take full control of, or at least strongly influence, the management of an acquired business," said the report.

"Now, leaders take a more sophisticated approach," the report said, citing the example of clothing giant Shandong Ruyi Technology Group which learned that "it pays to use a lighter control model." The company typically leaves the acquired company's brand management team in place, and instead, focuses its energy on bringing those acquired brands to China, according to the report.

"China's outbound boom will only continue as companies look to capture new capabilities that strengthen their domestic position while also growing overseas for a leadership position in industries in which they can gain a competitive edge," the Bain report noted.

[moneymunch] 12/10/2018 08:18

Any day now as i'm sure Ruyi will want have everything sorted as soon as possible to take full advantage of the duty free Ethiopian manufacturing base and take Bagir to another level with new business and supply contracts, making sure that their investment and profitability rises significantly in value as their expansion and development plans are implemented....News could drop next week and even Monday for all we know.....On and UP!!! Gla Holders ;-)

[moneymunch] 11/10/2018 19:15

A sudden and significant re-rate "shortly".....anyone else expecting deal news this month and a return to upward momentum in share price in anticipation??? Tick Tock............. BOOM!!! :-)