Looking For The 2016 Industry "Supply Side Reform" To Find Safety Margin

Looking forward to 2016

Anchor: increase base price and seek safety margin.

Looking forward to the 2016 industry of textile and garment industry

"Enterprise" subjectivity "differentiation.

Compared with the other sub sectors, the financial statements of the textile and garment sector are relatively good, mainly due to the fact that the overcapacity of the garment industry has been "cleared" for 2012-2014 years, and the negative impact of the financial statements is mainly reflected in 2013 and 2014.

Relative to subjective overly optimistic extension, the objective business environment has not improved significantly. The supply side reform at the industrial level is still continuing, and the weak enterprises exited quickly, while the dominant enterprises make strategic choices on the basis of their own natural resources.

Specifically, to invest logically, we are optimistic about the depth layout of excellent enterprises at the industrial chain level. The core is optimistic about the strategic layout and subjective direction choice, which will bring more clear growth logic in the next 5 years, such as Maison culture, Huafu color spinning, Huth stock, Austrian Kang Guoji, Bailong East, Jen Sheng group and George White. We also look at the layout of enterprises that have been thoroughly pformed in the new business, such as Kai Ruide, Kaiser shares, and noble birds. At present, we have confirmed the direction of the two main businesses, and the steady growth of xunxing shares, Weixing shares, good news birds, Maison, voui shares and modern Avenue are expected to explore new growth logic in 2016.

In the near future, attention should be paid to the success of the promotion, with the margin of safety, the great logic of the basic plane, and the stock of the small market value.

According to the three conditions of "stock price upside down + additional sales growth (which has been approved at a premium of less than 10%) + small market value (less than 5 billion)", we have listed three listed companies in the fixed sector. We should pay attention to 1. of the current stock price upside down: Huafu color spinning (upside down 22.90%), American bond dress (20.49%), Shenda shares (4.89%), Huafang shares (3.21%), YOUNGOR (1.89%), 2. have been approved and issued by the issuance examination committee and the securities and Futures Commission, and the premium is still within 10%.

(approved by the SFC, premium 5.70%), Pathfinder (approved by the SFC, 10.74%); 3. increased the small cap stocks approved or implemented: Xun Xing shares (4 billion 400 million market value), Mei Xinda (3 billion 200 million), modern Avenue (4 billion 700 million), and Shandong Ruyi (2 billion 700 million).

Combined with the company's strategy and fundamentals, it recommends individual stock portfolios: Huafu color spinning, Maison culture, Xinye textile, Pathfinder, Xun Xing shares, and Mei Xinda.

Huafu color spinning (adopted by shareholders' meeting, hanging 22.90%): opening the collaborative mode of cotton flexible supply chain and industrial Internet, the path of strategic development is clear, and the growth of performance is steady.

Mei Sheng Culture (issued by the securities and Futures Commission, the premium of 3.96%): Based on content, platform, realisation, investment to achieve the layout of the cultural industry chain, the most pure Disney logo.

Xinye textile (approved by the SFC, premium 5.70%, 3 billion 700 million market value): Xinjiang policy subsidies implemented, led to a substantial rebound in performance, the low cost of cotton supply advantages to ensure a strong market competitiveness of products.

Pathfinder (approved by the SFC, premium 10.74%): create "outdoor products + Travel Service + big sports" collaborative ecosystem.

Xun Xing shares (has been implemented, 4 billion 400 million market value): actively promote the second main industry (Sports) development, zipper main product structure adjustment to enhance profitability, accelerate the layout of overseas markets.

Mei Xinda (SFC approval, 3 billion 200 million): strong reversal of the main industry, business expansion can move large space.

Risk warning.

Risk of termination of non-public offering and issue price adjustment.