In Early Morning, China Fang Textile Opened And Closed Up 2.5%.

After three consecutive trading days, Hua Fang

[7.70 -1.41%] (600273) in August 9th, the stock price in early trading was down sharply. After less than 5 minutes after the opening, it fell to a sudden end. After 11 o'clock, the stock opened and went up to 8.5%.

As of 13:02, Huafang textile rose 2.56%, to 8.01 yuan, turnover rate of 10.1

Institutional review:

Hengtai securities Zhang Yuhang said that the company mainly engaged in knitted fabric, dyed fabric dyeing, dyeing, finishing and knitted apparel processing and manufacturing business, cotton price trend has been an important factor affecting the company's net profit.

Since the two quarter of 2011, due to the impact of high yield of cotton and international commodity futures, the whole cotton market has been in a weak position, and the price has dropped considerably. Textile enterprises have generally entered the business dilemma. Although Huafang textile is a time-honored brand manufacturer, it has not been able to do its best. From the mid 2011 to the 2012 one quarterly report, the four successive reports have presented a loss situation, and there is no sign of improvement at present.

Faced with the difficult situation, Huafang textile has announced in the July 20th announcement that if the industry downturn continues, new development plans will not be excluded.

In fact, the company has already had the strategy of diversified operation and development: in 2010, the company took the two top domestic shoes to protect the company's subsequent development of lithium battery enterprises, which can be seen as the first step into emerging industries.

In 2011 and 2012, Jiangsu's New Energy Company, a company owned by the company, runs smoothly. The main lithium battery products have already met the needs of many industries and are expected to break through this year.

Equilibrium point.

Recently, the company's stock price is not affected by the operation strategy, but because the Zhangjiagang municipal government's urban development plan involves the interests of the company.

The town of Tong Fang, located in the location of Huafang textile office, is located in the "Tong Qiao group", one of the "two groups" in the planning. If its large land can be revalued and collected by the government, it is expected to get considerable compensation for land price.

This will undoubtedly ease the Liquidity Dilemma that the company has been in for over a year due to the slump in the industry. It will also have a positive impact on the future development of new industries and the listing of the group as a whole.

Zhang Yuhang said that in the two tier market, the company's share price rose from July 17th to July 20th for 4 consecutive trading days, but the stock price fell again due to no substantive good announcement.

Then, on Monday and Tuesday, the company's shares closed continuously, and the stock price hit a new high since the current rally.

The amount of land compensation that the company receives will have a greater impact on the valuation of Future Ltd. At present, due to the fact that the details of the negotiations are unknown, there is still greater uncertainty.

Watch with caution.