Domestic Demand Gets Warmer &Nbsp; Shoe Companies Benefit.

Whether China reconsiders exchange rate reform, or the mainland wage increase and inflation signals, domestic demand shares will undoubtedly become a beneficiary.

How to find treasure in a stock of domestic demand, the international bank and Goldman Sachs all agree that enterprises with brand advantage and sales network will become winners.

Based on these two concepts, we can select industries, and shoe companies will benefit from domestic demand.

Shoe stocks performed better this year than big ones.

Looking back to the present year, including BELLE (1880),

According to the bank's international report, the export demand of the footwear industry in the mainland is gradually recovering, but the long-term growth is slowing down.

In the upstream manufacturing and processing enterprises, the old mode of "big price low" is no longer suitable for the long-term development of enterprises. Strengthening the R & D capability, enhancing the added value and brand value of the products is the way to break through.

At the same time, actively building a strong brand and establishing a perfect retail network will be the opening stone for the downstream industry.

The bank believes that Daphne (210) has great potential in the three tier cities and rural low-end market, and has a mature market share and a relatively high growth rate in the future.

Nine, earnings per share grew fast.

As for upstream enterprises, nine Hing Holdings (1836), enterprises have the advantage of technology and brand, and the prospect of high-end retail business in the mainland is broad.

The report gave a target price of nine Hing 18.19 yuan, compared with the potential increase of about 21.26% of yesterday's closing market price. There are three reasons: first, the earnings per share of Yu Xing, Yu Xing and nine Xing, compared with footwear manufacturers, grew faster, and their P / E ratios should be higher; two, nine Hing P / E ratios were significantly lower than those of the listed companies, the group continued to develop the retail market, and their discount rates should be narrowed.

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Goldman Sachs

The fund is interested in BELLE. The market forecasts that the earnings per share of BELLE in 2010 will be 0.369 yuan and the forecast price earnings ratio is 25 times.

Goldman Sachs maintained BELLE's "buy" rating with a target price of 11.2 yuan, compared with yesterday's closing price of 10.98 yuan, with a potential increase of about 2% and less water level.

According to the bank, BELLE's current valuation seems to be still attracted by a 26% increase in earnings per share in 2011.

Optimistic

In the case of another fund, Daphne, the market forecast 2010 earnings per share were 0.438 yuan.

According to Bloomberg statistics, at present, there are 14 large companies tracked by Daphne, of which 13 have been given a "buy" rating. One recommended "hold", with an average target price of 8.99 yuan, slightly higher than the current price.

XinDa pfer business

XinDa, which has the largest share price increase since the beginning of this year, is also a Rio Tinto mainland sales network. The company predicted earlier that the same store sales growth in China and Hong Kong will double in the first quarter of this year. It is believed that the retail market will improve in the second half of the year, and the company will continue to expand its production and increase its branches. It is expected that this year will add 150 to 200 stores. The target will open 1000 branches in 2012, and the capacity will increase to 2 million pairs.

The company said it will gradually fade out of the original equipment manufacturing (business), hoping to focus on the development of the original brand manufacturing () business. Looking forward to the next one to two years, the share of export revenue will rise from 4.5% to 50%.

Compared with other mainland footwear companies, XinDa has a relatively small scale, but the valuation is also low. At present, the P / E ratio is about 14.51 times and the interest rate is about 4 per cent.