Textile And Apparel "Small Dragon Stocks" Surfaced

At the beginning of the new year, with the constant consolidation of the textile and garment sector, its price to earnings ratio has reached a new low.

At the same time, the steady operation of domestic textile and garment enterprises and their ability of endogenous growth attract many investors' attention.

High quality textile and garment stocks including many Quanzhou enterprises are becoming hot topics in the industry.

Clothing sector wins the market

Over the past year, the overall decline of the market has been evident. The textile and garment industry as one of the consumer goods sector has won the whole market.

According to the latest statistics, from the beginning of 2011 to the present, the market overall oscillations downward, the Shanghai Composite Index fell 21.68%, textile

For Quanzhou enterprises, Founder Securities believes that the seven wolves are the models of domestic brand clothing. The terminal channel sales are good, the endogenous growth is multi-faceted, and the safety margin is high.

According to the relevant personages of Huachang securities, compared with international brands, the king of nine herds still has a price advantage of 2 to 3 times, thus maintaining a forecast of 0.88 yuan, 1.17 yuan and 1.57 yuan per share earnings per mu from 2011 to 2013, maintaining "highly recommended" rating.

For Li Lang, the head of northern Securities believes that as a famous menswear brand in the mainland, Li Lang has the reputation of "China Armani", and the group's goal is to increase LILANZ retail stores to 5000 in the next few years.

In the spring and summer 2012, orders for LILANZ and L2 increased by about 28.5% and 100% respectively. Both the average selling price and sales volume reached double-digit growth, which helped to make the annual performance ideal.

Dragons share continuous growth

Recently, the concept of stock dragons has been highly sought after by the industry.

It is understood that the genes of Xiaolong stocks are small cap small market value, high growth and high returns.

At ordinary times they do not show the mountains do not show water, it is difficult to find their traces on the list of prices, but a little rise every day, the accumulation is very amazing, deeply loved by the organization, especially the fund.

The industry pointed out that the reason why Xiaolong can grow up as a leader is because they are originally dragon, and the endogenous strength of "small dragon stocks" is not high growth, high capital accumulation fund, reasonable price earnings ratio, and high institutional concentration.

In 2012, in the face of the downside risks of the overall economy, brand textile and garment enterprises had better defensive capabilities.

Through the trend of the industry over the years, the performance of textile and clothing in the weak market is generally better than that of the strong market, and defensive characteristics have become increasingly evident in recent years.

Analysis of the industry, brand textile and garment enterprises, due to their different stages of development and positioning, there is a big difference, but its industry's rapid growth and sound operation, has become the target of investors tracking.

In a word, anti risk and growing quality textile and garment stocks will become the real "hidden dragon" stocks in 2012.

Local clothing stocks become "Dragons"

At present, the seven wolves and Xun Xing shares have become the "Dragons share" recommended by many organizations.

The net profit of seven wolves increased by 30% to 50% in 2011.

At the end of 2011, the company put fund-raising into the marketing network optimization project, which is conducive to consolidating the existing multi-level and multi-functional clothing sales terminal network, and further expanding the sales network extension of the company's products.

Xun Xing stock company expects net profit growth of 2011 to 20% to 50% over the same period.

As the leader of the domestic zipper industry, Xun Xing is most benefited from the background of the industry concentration increase, and the reverse trend of future performance is now available.

In addition, the relevant data show that the textile and apparel industry is currently valued at about 20 times earnings and is below the middle level in the industry.

Among them, the textile manufacturing sub industry is currently valued at a price earnings ratio of 18.6 times, and the valuation level of some key companies has reached the bottom of history.

Quanzhou clothing enterprises, the seven wolves, the current price earnings ratio of 23.79 times, the lowest level since the listing, nine Mu Wang's current static P / E ratio of 23.74 times, are at the lowest level in history, showing investment opportunities.