Five Effective Genes To Spin Out Cattle Stocks In Textile And Garment Industry

Over the past year, China's stock market has been ups and downs.

Those excellent listed companies in textile and garment industry are all in the capital market and become "bull stocks".

Then, "

Count the five major genes in the textile and garment industry.

Some may say that bull market is the best incubator for cattle stock; others will say that bull stocks depend on their own luck; others will say that cattle stocks have been taken care of by the main producers.

This is reasonable.

However, in 2011, there are five excellent genes in the textile and garment industry "bull market".

It's because of it.

Gene 1: intensive cultivation of first tier cities, expansion of two or three line cities

Representing Enterprises: Nine herding Kings (601566)

Market review: in the first half of 2011, 9 Mu Wang achieved operating income of 964 million yuan, an increase of 31.02% over the same period last year, and net profit of 235 million yuan, an increase of 42.39% over the same period last year.

From the perspective of income structure, men's trousers account for the highest proportion and men's trousers account for the majority.

Business analysis: Nine Mu Wang is China's leading business casual men's clothing brand.

The company has four core competencies that match the industry characteristics of men's wear:

(1) channel layout with high quality and high starting point.

The company's second tier channel is more important than that, which helps to establish brand image and lay the foundation for the smooth expansion of the three or four line market expansion.

(2) the vertical integration mode helps to improve the efficiency of the supply chain and gain better profitability.

(3) professional and good quality products conform to the appeal of men's clothing consumption.

(4) the brand influence of strong products.

The market share of men's trousers and jackets is ranked first and second in China.

Investment rating: Forecast Ltd's earnings per share from 2011 to 2013 were 0.91 yuan, 1.22 yuan and 1.38 yuan respectively, and the compound growth rate of profit in the next three years is about 30%.

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Gene two: positioning high-end, multi brand operation.

Representing Enterprises: shares of 002612

Market review: she is positioned in high-end women's clothing and has many excellent products.

Business analysis: the four advantages lie in the position of high-end high-end women's clothing market and high growth base.

Embodied in fabric, excipient selection and processing links, the final performance is the unit product cost, the single cost of Alpine is more than 360 yuan, the industry is relatively high; the two is the grasp of the trend of fashion and the ability to catch up quickly. Based on the combination of foreign fashion trends and domestic demand, the link between sales, chasing, direct shipment and national cargo pfer is better. Among them, the speed of tracking is 20-30 days, and how to adjust the distribution of goods as a national direct dress brand is also crucial to inventory control. Three, it is more suitable for domestic consumers than the international brands in terms of edition, and at least ten years of experience in printing companies. Four is sold in many high-end shopping malls in China, and it also meets the psychological needs of domestic consumers. A cornerstone is quality.

Investment rating: the main revenue in 2011/12/13 was 8.23, 11.8 and 1 billion 700 million yuan respectively. Net profit was 2.14, 3.16 and 452 million respectively, and EPS after dilution was 1.07/1.58/2.26 yuan.

At present, the stock price corresponds to PE39.3, 26.55 and 18.6 times. Although the quality of the company is good, the valuation is relatively high, giving the "prudent recommendation" rating.

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Gene three: two venture, two wheel drive

Representative enterprises: Wedding birds (002154)

Market review: good luck bird positioning in high-end business men's clothing, 2011 first half of the year to maintain rapid growth in business performance.

In the context of consumption upgrading, personalized demand and fashion suits, business men's clothing industry is ushering in the era of demand return.

On the basis of meticulous management and endogenous growth, the company will vigorously carry out extensive expansion, improve the opening speed of the news bird and Saint Angelo brand, and implement the multi brand strategy to achieve the two wheel drive of scale and gross profit margin.

Business analysis: the company's product brand can be divided into two categories: the independent brand and the brand.

Investment rating: 11-13 years EPS is expected to be 0.59/0.81/1.09 yuan, net profit compound growth rate of nearly 40%, fast growth and low valuation, maintain buy rating.

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Gene four: channel sink, bring forth the new.

Representing Enterprises: seven wolves (002029)

Market review: in the first half of 2011, the company achieved operating income of 1 billion 194 million yuan, an increase of 22.64% over the same period last year, and realized operating profit of 218 million yuan, an increase of 28.72% over the same period last year. Net profit attributable to parent company was 175 million yuan, an increase of 41.29% over last year.

Business analysis: channel integration is steadily advancing, and new channel construction is progressing smoothly.

The company steadily promotes the strategy of "wholesale" to "retail", while improving and refining the business mode of agents and distributors.

During the reporting period, the number of stores directly operated by the company increased by 51.

In the first half of this year, the company achieved a net sales of about 32 million yuan, an increase of 400% over the same period last year. In the second half of this year, the company will launch a new network sales platform, which is expected to make positive contributions to the company's net profit growth in the future.

Investment rating: the three quarterly earnings growth is expected to be 30%-50%.

It is estimated that the EPS will be 1.41/1.85/2.42 yuan in 11-13 years, and the net profit compound growth rate will be 34%.

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Gene five: keep abreast of

Representing Enterprises: YOUNGOR (600177)

Market review: YOUNGOR achieved business income of 5 billion 390 million yuan in the first half of 2011, up 0.71% from the same period last year.

Business analysis: textile and garment industry structure is straightened out, brand clothing domestic sales revenue grew steadily, an increase of 26.4% over the same period, the brand premium increased gradually, and the gross domestic product gross margin of brand clothing increased by 3.3 percentage points to 65.2% over the same period.

In the 11 half of the year, the gross profit margin of textile and apparel was 41.7%, of which the gross profit margin of clothing business was 46.5%, and the gross domestic product gross profit rate was 65.2%.

During the reporting period, the company will pfer the new Ma group, which is mainly export business (the purchase price is 70 million US dollars, and the pfer price is 80 million US dollars). After the pfer, the OEM business with lower gross margin will be further reduced.

In the first half of the year, the domestic brand clothing revenue increased by 26.4%, but because of the upgrading of the company's decoration and shop adjustment, the increase in sales cost led to an increase of 19% in domestic brand clothing net profit and slower than revenue growth. However, the adjustment of shops is conducive to the second half of the garment business and next year's efforts.

With Mr. Xu Qigang (36 years old), director and general manager of the company as vice chairman and general manager of YOUNGOR apparel holdings, the age structure of future management will be more reasonable and the strategic decision of clothing business will be more internationalized.

Investment rating: to maintain the company's 11, 12 years 1.25 and 1.37 earnings forecasts, dynamic P / E is 8.2 and 7.5 times, valuations are still at a low level, maintain buying recommendations.