Brand Clothing Valuation Downlink &Nbsp; Company Stock Entered Reasonable Allocation Interval.

In January, the brand clothing sector, which has experienced a collective decline, has recently returned to the perspective of brokers.

Recently, a number of securities research institutes released the textile and garment industry research report, pointing out that with the downvaluation of the brand clothing listed companies, the company's stock prices gradually entered a reasonable allocation interval, brand clothing plate will usher in a wave.

Cost pressure pmission smoothly

In 2010, the Shanghai and Shenzhen 300 index rose 11.51% in the whole year, while the A share textile and apparel industry achieved a cumulative increase of 7.51%, which is higher than the former 19%.

In the textile and garment subdivision industry, the textile sub industry has risen by 3.49%, and the clothing sub industry has increased by 12.51%.

For textile and garment enterprises, the strong growth of domestic demand in 2010 made it unnecessary.

Bargaining power is a major advantage of brand clothing listed companies.

Guoxin Securities believes that in the coming year, A brand clothing companies will expand substantially, and the industry investment choice will be differentiated.

Positioning in the low-end brand clothing will fully benefit the rapid development of China's small and medium-sized urbanization, related companies such as Mei Bang dress, search on special, Saturday, Hinur and so on; positioning in the high-end brand clothing will benefit from the domestic first class consumption upgrading and share improvement, related companies such as Meng Jie home textiles, Pathfinder, Luo Lai home textiles,

Securities companies believe that another important aspect of brand clothing listed companies is the construction of e-commerce platform.

Since the entry of e-commerce in China in 1997, and after a long period of development, it has been developing rapidly in recent years.

From the statistics and forecasts of AI consulting, the growth rate of online shopping in China in the past 2008-2010 years is 128.5%, 105.2% and 89.4% respectively.

The proportion of online shopping pactions in total retail sales of consumer goods also increased year by year, 1.2%, 2.1% and 3.2% respectively.

Huachang Securities believes that clothing products are more vulnerable to the impact of e-commerce in the low and middle end clothing market with low market concentration and low brand loyalty. However, the Brand Company independently build e-commerce trading platform (independent sales B2C), compared with the sales of many C2C models, and has the advantage of channel configuration and product line.

For enterprises themselves, online shopping can accelerate the digestion of inventory and speed up product circulation. Of course, it also requires enterprises to have more advanced supply chain management capabilities.

Overvalued risk release

In the research report, Huachang Securities pointed out that the early brand clothing was highly concerned by the market with good consumer attributes, and the valuation was once high.

The mainstream brand clothing, such as seven wolves, wedding birds, American bond and Saturday's price earnings ratio also reached 31 times, 31 times, 37 times and 36 times in 2011. The new listed companies in search and Hinur reached 58 times and 32 times the highest respectively, and the Pathfinder of gem was 62 times higher.

Therefore, in the case of market decline or small and medium stock valuations downward repair, brand clothing valuation decline is inevitable.

But after the crash, the valuation of brand clothing companies has already dropped, and the average price earnings ratio in 2011 has dropped to 20-25 times.

Many brokerages believe that the brand clothing industry has experienced a sharp drop in January, and the risk of overvaluation has been released to a certain extent, thus raising the investment rating of A share related listed companies.

Huatai Securities gives the brand clothing industry "overweight" investment rating, recommends investors to intervene in the low valuation of the industry leading shares; Guoxin Securities prudently recommend positioning in the high-end brand clothing, related companies such as Meng Jie home textiles, Pathfinder, Roley home textiles, fuanna, Kaiser shares, etc., Guo Yuan Securities recommended textile and apparel industry rating, optimistic about the brand and high-end technology advantages of listed companies, recommended to seize the three or four category of blank market search for special high-end technology fabrics, high-end functional fabric manufacturer Jia Linjie, with stable gross margin and revenue growth rate is higher than the industry average level of Jiangsu broad-minded.