Home Textiles Plate Valuation Into A Downward Channel

According to the weighted average method of Wind total market capitalization, the home textile sector returns were ranked in 2010 and 2011.

Next year, in the context of raw material price stability, the price increase has been weakened, so sales growth is the key to the growth of next year's performance.

At present, 60% of the sales of home textile industry come from sales promotion, and some middle and low grade enterprises are even up to 80%.

Differ

From 2010 to 2010 this year, the highest to more than 40 times to this year's high hitting 36~38 times dynamic till next spring and summer.

According to the weighted average method of Wind total market capitalization, the yield of home textile sector ranked first in the textile and clothing industry in 2010 and 2011.

Under the background of this year's big bear market, the home textile plate is the only sector that achieves positive returns in the spinning and weaving industry.

Since then, the market has already predicted that the growth rate of orders for home textile enterprises in spring and summer will slow down under macroeconomic factors such as macro-economic depression, high inflation and low price effect. The actual situation is also in line with expectations (however, the growth rate of order volume is still more than 40% over the same period), and the trend of home textile enterprises is weak.

However, the author still thinks that the home textile sector will gain a higher yield in 2012.

The stock price catalyst mainly comes from the continuous improvement of the industry boom, the expansion of the leading edge of the listed companies, the high performance growth rate, the sustainability and the high gold content.

At present, the three driving force to promote the sales growth of home textile enterprises is investment promotion, promotion and group buying.

These factors will continue to exert force in 2012.

Channel is still the top priority for home textile enterprises to occupy the market share.

Both Luo Lai and Meng Jie adopt the business mode of "joining the main business and supplemented by direct operation". Fuan's direct store has the highest proportion, and comes from its "art home textiles" business philosophy. However, after the listing, it also attaches great importance to the development of franchise channels.

Therefore, successful investment helps to enhance the sustainability of home textile enterprises' sales.

This year, the main reason for the good development of the industry is: first, the investment intensity is higher than expected. After the three companies went public, they used capital advantages to grab the high quality franchisees.

Secondly, enterprises require franchisees to accelerate the opening of stores, encourage new franchisees to open two stores, and open stores for old franchisees, while giving decoration, advertising and goods support, and throw away the gap between the second tier home textile enterprises.

The first camp's home textile enterprises have more investment pressure than other home textile enterprises due to their own channels, brands and capital advantages.

Next year, in the context of raw material price stability, the price increase has been weakened, so sales growth is the key to the growth of next year's performance.

At present, 60% of the sales of home textile industry come from sales promotion, and some middle and low grade enterprises are even up to 80%.

Unlike the clothing industry, frequent promotions will dilute brand influence and lower brand height. The characteristics of the home textile industry are that sales volume will be reduced by half if sales are not promoted.

Therefore, effective promotion and promotion can not only promote the rapid increase of sales volume, but also will not affect the brand image.

Roley is the best example.

In the promotion of Luo Lai, the popular products (ordinary four piece sets) are generally 2~3 discount, and the real products (four piece sets, quilt core and pillow core) are 7~8 folded. Every year, the company opens a new store, celebrates the sale, sells decoration and holidays, and adopts a variety of promotional tools to pull sales, but the product reputation is still very good.

Because the core competitiveness of the company is not only the operation strategy of multi brand matrix, but also its fast market reaction ability.

At present, apart from Luo Lai, the proportion of fuanna and Meng Jie group purchases is relatively low, and the majority of them are scattered. The reason is that group buying is not sustainable.

Three home textile enterprises have group buying departments, but the most successful business is Luo Lai, whose group buying department was established in 2007, when sales were only more than 1 thousand yuan, and has increased to 300 million yuan.

As companies continue to tap new customers in the party, government, military, educational institutions, monopoly industries, enterprises and institutions, and business super sales, large numbers of new customers follow.

Group buying is also a new channel to rapidly expand sales scale. At present, fuanna and Meng Jie are trying to make these two blocks stronger.

Since the listing, investors have always thought that the valuation of home textile plates is high, but the sustained high growth of the performance of home textile enterprises has proved the driving force of its high valuation.

Investors have begun to question whether the valuation of the home textile plate has entered the decline from a dynamic PE of more than 40 times in 2010 to this year's 36~38 times dynamic PE to the next year, and the answer is affirmative.