Sports Shoes Faucet ---- Yu Yuan Current Price Attraction

U.S. stocks continued to fail for 7 days, and 687 points were spilled overnight, and Hong Kong stocks were not immune. On Friday, the Hang Seng Index sharply lowered 1225 points. After 14991, it fell to 14399 in the afternoon, and the market narrowed slightly. It closed at 14796 points, fell 1146 points, and for the first time in 3 years, it fell through 15000 points, and traded at 69 billion 370 million yuan.

Investor confidence has not yet recovered, and there is another panic in the market. It is expected that Hong Kong stocks will remain volatile in the short term. Investors are still not eager to enter the market at this stage.

Big cities are hard to get rid of, and fund stocks continue to be sold for sale. Many shares also hit a new low throughout the year.

Earlier, Buffett, a stock god, became a shareholder in BYD (1211), proving that industrial stocks are not roaring, not necessarily the sunset industry.

Yu Yuan (0551) is another powerful industrial stock. It is mainly engaged in the manufacture and distribution of footwear products, with 430 production lines and retail and wholesale businesses.

In the first three quarters of this year, Yuyuan pure Li amounted to US $438 million (about HK $3 billion 416 million), an increase of 55.6% over the same period last year. During this period, sales of footwear continued to rise due to steady growth in footwear manufacturing and strong sales from wholesale and retail businesses in Greater China.

Although it is still adversely affected by rising raw material prices and labor costs, management is confident that the gross profit margin of the production business in the second half of this year will remain 22%, and the recent price drop has positive effects on market sentiment and its ability to maintain gross margin.

Yuyuan is in a leading position in the production of sports shoes, and the scale of large-scale production can continue to allow it to benefit from scale efficiency, and its bargaining power is strong and market share can continue to rise.

This year, Yuyuan's retail business grew by more than 70%, which helped to make greater progress in regional diversification. At present, Asia has accounted for 34% of Yuyuan's total sales, and its growth in the original manufacturing and retail business is expected to continue.

However, due to the weakness of consumer spending in the US, the manufacturing environment in recent years is likely to be more and more difficult, and orders from two major customers of Nike and Adidas are also showing signs of decline.

But at current prices, the stock value is not high, and the market expects that its compound annual growth rate in the next 3 years will still be 12%.

Plus the current P / E ratio is only 6.3 times, and the dividend yield is 5 per cent, which is attracted by industrial stocks and leading enterprises.

Yesterday's big market downturn, Yu Yuan stock price has been relatively strong, a drop of only 2.8%, at 18 yuan level obviously strong support, might as well consider buying at the current level, the target price is 20.5 yuan, 18 yuan as a stop erosion site (current price is 18.9 yuan).

As for the next the third Plenary Session of the 17th CPC Central Committee, China will study the issue of promoting rural reform and development. In fact, in 08, the state has continuously improved the policy of supporting agriculture and benefiting farmers and developed modern agriculture. The subsidy for agricultural machinery purchase has been further increased to RMB 4 billion yuan, and the funds, scope and varieties of subsidies have also been expanded.

Although the external economy is weak, the demand for agricultural products in the mainland is still high. The growth of agricultural machinery can also be seen as high.

In terms of share price movements, the current price is 0038 yuan higher than the 5.79 yuan in March this year, with a total decline of 78%. Its price earnings ratio is only 4.78 times that of 08 years, and the current price is quite attractive.

Yesterday's lowest fall to 1.06 yuan, that is, to undertake, closed at 1.24 yuan, only a slight drop of 0.01 yuan, the volume can also be seen, can consider the current price to buy, Bo 15% return, the target price of 1.43 yuan, down 1.05 yuan to stop corrosion (the current price is 1.24 yuan).