This industry leader has been mercilessly abandoned, and this year it has become 80 times big bull stock!

category:Finance
 This industry leader has been mercilessly abandoned, and this year it has become 80 times big bull stock!


The typical one is Shenzhou International. Shenzhou International was not recognized by the capital market at the beginning of its listing in 2005, and fell to HK $0.5 during the financial crisis in 2008. In 2005, the net profit of Shenzhou International was only 351 million yuan, but in 2019, the net profit of the company was 5.095 billion yuan, an increase of about 12 times compared with ten years ago.

The stock price of Shenzhou International reached a record high in November. Since its listing in Hong Kong stock market in November 2005, the stock has risen nearly 80 times, becoming a bull stock.

E-commerce is the driving force for growth

The East is not bright, and the west is bright. Because of the strong brand awareness, the online revenue of leading companies has increased rapidly, offsetting the impact of the epidemic. In the first half of this year, bosdens full brand online sales revenue was about 540 million yuan, up 76.4% year-on-year. The self operated and wholesale revenues from online sales are about 250 million yuan and 290 million yuan respectively. Among them, the online retail amount of bosdens down jacket business increased by more than 35% on a year-on-year basis this year, the omni-channel sales volume of bosden brand exceeded 1.5 billion yuan, and the online retail amount of bosden, the main brand, recorded a year-on-year increase of more than 25%, ranking first in the domestic clothing category for two consecutive years. In addition, during 618 this year, bosdens sales increased by more than 100%.

Li Ning recently released the operating data of the third quarter of 2020, which shows that from the perspective of retail flow, the online flow of the third quarter achieved a growth of 40-50%, significantly faster than that of the first half of the year. Zheshang Securities believes that the growth of Li Ning online is mainly driven by online activities such as super brand day from August to September, Dunhuang dashiu (online sales of the series), and 99 Shopping Festival.

Performance continued to go bull, textile sector bull stocks emerge in large numbers

Shenzhou International is the largest vertical integrated knitting leading enterprise in China. The company mainly manufactures knitwear for customers by OEM and ODM. The sum of orders from the top four customers in 2019, including Nike, UNIQLO, ADI and puma, accounts for about 86% of the companys sales.

Shenzhou International was not recognized by the capital market at the beginning of its listing in 2005 because it was regarded as a sunset industry and the track was not good. It fell to HK $0.5 during the financial crisis in 2008. In 2005, the net profit of Shenzhou International was only 351 million yuan, but in 2019, the net profit of the company was 5.095 billion yuan, an increase of about 12 times compared with ten years ago.

The valuation of Shenzhou International also rose sharply with the companys performance. From 2006 to 2009, the companys valuation (PE) has been around 5 times, the lowest in 2008 was around 2 times. However, since 2010, the companys valuation has been rising, especially since 2019, the market has regarded the company as a scarce leading supplier, and the valuation has reached 35 times. The valuation level of the company is six times higher than that at the beginning of listing.

Bosden has been soaring for three years in a row, and it has risen nearly 470% since the beginning of 2018. In March 2018, bosden put forward a brand-new brand strategy of focusing on the main channel, shrinking diversification, and reshaping the brand image of the worlds best selling down jacket expert. Soochow Securities said that bosden tried high-quality and high unit price extremely cold series in the winter of 2017 (the unit price was close to 2000 yuan), and obtained a very high sell out rate in the winter of 2017, which made the company realize that bosden brand still has a strong market influence, and has strengthened its confidence in building a new brand through product design and process upgrading, matching with new marketing methods.

Li Ning has risen nearly 22 times since its listing in 2004. According to the annual report of 2019, the net profit of Li Ning is 1.5 billion yuan, while that of 2003 is only 100 million yuan. The net profit of Li Ning has increased 14 times since its listing. Anta sports has also increased 20 times since it was listed in 2007. According to the annual report of 2019, Anta Sports net profit is 5.6 billion yuan, while the 2007 annual report shows that Antas net profit is only 540 million yuan, and the profit during the period has increased more than 9 times.

Huge space for long-term growth

Guoxin Securities believes that at present, China is not only the worlds largest clothing consumer market, but also the worlds largest textile and clothing supplier. However, in the market value of leading enterprises in the global textile and clothing industry chain, Chinese enterprises currently account for less than 5% of the market value of the top 20 enterprises.

Guoxin Securities Analysis believes that in the past decade, both supply and demand sides of Chinas textile and clothing industry are in the environment of reshuffle after dividend subsided. Under the opportunities and challenges, a number of leading enterprises with competitive advantages have emerged in China. Under the test of this years epidemic situation, international competitiveness has initially appeared, and we are optimistic about the future. Under the new pattern trend of double circulation and internal circulation, Chinas excellent leading enterprises will be able to make progress Long term growth space. Dongfang Securities believes that after the three quarterly reports, there are three trends in the textile and clothing industry in the post epidemic era: first, leading enterprises accelerate online layout and digital empowerment. In the first three quarters, the proportion of e-commerce of brand clothing companies has generally increased rapidly. Second, the offline operation of leading enterprises is more in pursuit of quality and sustainability. The epidemic has accelerated the clearance of inefficient stores in the whole industry. In the future, attention to business quality will become the norm. Third, leading enterprises pay more attention to the efficiency of the cost investment, the proportion of online marketing is increased, the online marketing traceability is strong, the target customer positioning is more accurate, and the investment efficiency is relatively high, which is becoming the first choice of the companys marketing methods. Source of this article: Yang Bin, responsible editor of securities companies in China_ NF4368

Guoxin Securities Analysis believes that in the past decade, both supply and demand sides of Chinas textile and clothing industry are in the environment of reshuffle after dividend subsided. Under the opportunities and challenges, a number of leading enterprises with competitive advantages have emerged in China. Under the test of this years epidemic situation, international competitiveness has initially appeared, and we are optimistic about the future. Under the new pattern trend of double circulation and internal circulation, Chinas excellent leading enterprises will be able to make progress Long term growth space.

First, leading enterprises accelerate online layout and digital empowerment. In the first three quarters, the proportion of e-commerce of brand clothing companies has generally increased rapidly.

Third, leading enterprises pay more attention to the efficiency of the cost investment, the proportion of online marketing is increased, the online marketing traceability is strong, the target customer positioning is more accurate, and the investment efficiency is relatively high, which is becoming the first choice of the companys marketing methods.