Transformation Of Garment Industry Into The Main Line Of Investment This Year

Since the beginning of this year, the textile and garment sector has performed well, and traditional thinking has been unable to explain.

According to the weighted average calculation of the market value of the circulation market, the textile and clothing sector has ranked fourth in 29 industries since the beginning of this year.

However, whether from the plate company income, net profit growth or profitability, although there are varying degrees of improvement, but it is not enough to support the current high valuation of the spinning and weaving company. Therefore, according to traditional thinking, if we study from the income side, the net profit side or the PE/PB side, we can not give a relatively reasonable explanation for the current increase of the plate.

Transformation of mergers and acquisitions is the main line of investment this year.

There are not many bright spots in the industry.

From the industry fundamentals, the growth of household income is slowing down, the consumption intention is flat, and domestic and external demand is still in the doldrums. Most of the companies have experienced a rapid growth stage of extensive extension, and the growth rate of sub industries has slowed down year by year. The main selling pressure is bigger and the higher performance elasticity can not be seen in the short term.

The pformation of various sub industries, mergers and acquisitions flourishing, a lot of bright spots.

Plate: enter sleep monitoring,

Large household, big health and other fields;

Plate: the main direction of pformation in finance and e-commerce; leisure outdoor sector: involved in sports, culture, children, travel, electricity providers and other fields; women's wear plate: the representative of lente shares to create a pan fashion ecological circle; textile plate: Eight Immortals crossing the sea, every show.

In addition, a considerable portion of the textile industry is more difficult to reorganize due to its continuous operation, low market value and shell value.

Typical path of bull market: issuance and ESOP.

In the big background of the large number of companies running poorly in the textile and garment industry and the main business development space, the typical way of the bull market is to increase the market capitalization by means of the increase and share holding and other means of pformation and merger.

At present, a number of companies have been issued, four have launched the employee stock ownership plan with varying degrees of leverage, and three companies have suffered large scale reduction of large shareholders.

The two dimension chooses the big bull strands of the spinning and weaving board.

Dimension 1: maximization of theme flexibility.

It mainly depends on how large the space of the company's pformation is, how sexy the topics are, and whether the company is flexible enough. In pursuit of this logic, we recommend three major combinations: Wordsworth, blue, and great birds; dimension two: themes and achievements.

There are not many companies with both performance and subject matter. The company with this element will continue to usher in the "Davies double click" effect. Based on this, we have selected three combinations: Maison culture, Huafu color spinning and Luo Lai home textile.