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    Textile Clothing Industry Valuation Pressure Still Exists.

    2011/2/10 13:13:00 54

    Textile And Clothing Pressure

    Investment summary:


    Last month, the overall valuation of the industry dropped sharply.

    In January 2011,

    Textile and clothing

    The overall performance of the industry is obviously weaker than the general trend, which almost completely confirms our one month investment strategy, that is, the overall valuation pressure of the industry appears, and the valuation center of brand consumption is down.

    The return on portfolio we recommended to investors last month is -12.50%, which is slightly lower than the decline in the industry index -12.00%.

    In January, the main performance of the industry was some stocks with non main business development themes and asset injection themes. Most of them were ST class stocks. Judging from experience, this is a sign that the enthusiasm of the whole industry will continue to be depressed.


    In February, the industry will still face the pressure of valuation.

    Considering the growth of the whole brand consumer companies, we believe that the current PE level of 25 times in 2011 is under reasonable valuation.

    However, judging from the current market sentiment, we believe that on the one hand, the valuation is still not low compared with the large cap and cyclical stocks. On the other hand, the first half is not the performance harvest period of the brand consumer companies, so there is still room and pressure for certain valuation to move downward.


    Investment strategy: choose high growth

    Market segmentation

    The underlying target is resistant to the downward movement of the valuation center.

    We believe that companies with relatively stable growth and certainty will not be able to resist the risk of downshifting of the valuation center at this stage.

    The choice of the target in the high growth segment market can help us to better understand the risk of the downvaluation of the industry by updating the market's understanding of the current valuation level.

    The portfolio we recommend is Rebecca (600439) (35% weight) and Smith bond (002269) (35% weight).

    Pathfinder

    (300005) (30% weight).

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