Expert Analysis: Value Of Shares In Big Day Stock

Company Description:

Limited by Share Ltd was founded in 1987. It is the largest and largest domestic textile company in the world. Its export volume has been ranked first in the domestic textile industry since 1999, and is listed on the Shenzhen stock exchange in 2006. It is the first overall listing enterprise in China's home textile industry.

As a large household

With world-class production, such as weaving, printing and dyeing, finishing and other related production equipment, supporting thermoelectric, tap water and other related enterprises, it has formed a complete industrial chain of R & D, cotton spinning, home textiles manufacturing, and domestic and foreign sales integration. The production capacity of towel series products ranks first in the global home textile industry.

Main points of investment:

On the evening of 19, the announcement of the semi annual performance bulletin showed that the net income, operating profit and net profit attributable to shareholders of Listed Companies in the first half of the year were 2 billion 190 million, 222 million, 158 million yuan and 0.17 yuan / share respectively, with the increase of -10.04%, 17.84%, 16.44% and 13.33% respectively. EPS

Due to the disposal of PV projects (14H1 income 61 million 209 thousand and 700 yuan) and the decrease in the recognition Revenue during the Real Estate Company period, the total operating income in the first half of the year decreased compared with the same period last year. However, the net profit from the main products increased year by year and the expenses decreased year-on-year. The net profit of the parent company increased further than that of the same period last year (14H1 net profit increased by 8.96%).

Our annual performance is expected to be beautiful. In addition to the natural growth of the main business, with the end of PV treatment at the end of 2014, the performance will be dragged down. The net profit of the company's annual report will return naturally. The company's future performance elasticity is expected to benefit from the reform of the electricity system: the supporting textile main industry, relying on the group's own thermoelectric power generation capacity and the power to sell electricity, through the establishment of a new specialized sale of electricity companies, the layout of the sale of electricity, is expected to expand with the market, expand customer groups, and extend the downstream distribution channels.

As a leading enterprise in the global towel industry, its management and management capabilities are strong. The company has the objective conditions for the extension of the industrial chain under the support of the steady cash flow of the main industry.

In the short term, after the cotton price has stabilized, the demand for replenishment of the industry chain is expected to be improved, and the increase in the gross profit margin is expected. As well as the disposal of the bad assets of the PV industry, the impairment loss is expected to decrease significantly every year.

While ensuring that the status of Japan and Europe's main selling market has been consolidated, the company has focused on developing emerging markets, applying cross-border e-commerce to drive incremental orders, and continuing to promote brand building in the domestic market, optimizing the franchise development mode and enhancing the efficiency of single stores.

At the same time, relying on overseas design resources, the upgrading of high-end brand image promotes the added value of products to form a two wheel drive growth pattern of towels and beds.

As a private enterprise with a previous layout, the company will fully benefit from the resource integration opportunities expected by the power reform.

The ThermoElectron Corporation is responsible for the production demand of more than 300 industrial users in the north industrial area of Gaomi City.

In 2014, the Group invested 80 million yuan in upgrading the environmental protection facilities based on the desulfurization, denitrification and dust removal of three thermal power plants in the north of the WAN Ren thermoelectric City, the high source and the south of.

After the completion, the discharge of pollutants will be far lower than the national emission standards.

The company expects to achieve net profit of 278 million, 309 million and 347 million yuan in the 2015-17 years, with an increase of 281%, 10.85% and 12.47%, corresponding to EPS0.31, 0.34 and 0.38 yuan respectively.

The cyclical downward impact factors of the textile industry since 2010, demand at home and abroad, cost,

Upside down has been significantly weakened, and the industry as a whole has the logic of valuation improvement.

Taking into account the company's product positioning upwards to bring additional value enhancement and overseas market development and domestic market coverage, the main business growth is steady, and benefited from the divestiture of PV assets. The performance elasticity of the next 2-3 years is remarkable. In addition, the company has the resource endowment and objective conditions extended by the industrial chain, giving the 40xPE valuation in 2016, corresponding to the target price of 13.6 yuan, buying rating.

The main uncertainties are:

Overseas recovery is not up to expectations, domestic demand is deteriorating, and electricity reform is not up to expectations.

Expert tips: the stock market is risky and needs to be cautious when entering the market.