Market style switching, undervaluation & a good opportunity for the layout of high-quality targets in the third and fourth tier of high growth has come
Since October 2021, the large consumption group of Zhejiang merchants launched two special reports in succession, recommending the main line of the “small and beautiful” target with low market attention at that time (the third and fourth tier subdivision leaders with high growth rate), the performance of the target of each sector has gradually verified our recommendation logic.
After the new year of 2022, the market style has changed significantly, and investors begin to look for undervalued, low attention and high growth targets. Based on the fundamental qualitative and quantitative analysis of all consumer companies (screening indicators include peg forecast in the next three years, growth expectation in 2022, whether the company has performance reversal opportunities, etc.), we screened out a group of key targets with undervalued value, low attention and high growth for investors’ attention.
Investment advice
(1) textile and clothing: high quality manufacturing “small and beautiful” and high brand clothing α Class object. For example, Zhongwang Fabric Co.Ltd(605003) , Zhejiang Xinao Textiles Inc(603889) , virgin, Huafu Fashion Co.Ltd(002042) for textiles and Biem.L.Fdlkk Garment Co.Ltd(002832) , Baoxiniao Holding Co.Ltd(002154) for clothing.
(2) light industry and home furnishing: the target of the inflection point of cost decline & demand recovery and profit. For example, Suofeiya Home Collection Co.Ltd(002572) , Qumei Home Furnishings Group Co.Ltd(603818) for home lines, and Healthcare Co.Ltd(603313) , Shenzhen Yuto Packaging Technology Co.Ltd(002831) for high-quality manufacturing lines.
(3) home appliances: the cost pressure is relieved, the performance elasticity is shown, and the “small and beautiful” standard is manufactured with high quality. Home electric faucet α Attribute Hisense Home Appliances Group Co.Ltd(000921) , Hangzhou Robam Appliances Co.Ltd(002508) , and bottom valuation reversal Zhejiang Three Stars New Materials Co.Ltd(603578) , Shanghai Highly (Group) Co.Ltd(600619) .
(4) commercial retail: cross border e-commerce, high-quality service providers operating on behalf of others, and new growth targets of gold jewelry. Such as cross-border track service provider Guangzhou Jiacheng International Logistics Co.Ltd(603535) , beauty brand operation group Syoung Group Co.Ltd(300740) , beneficiaries of aesthetic awakening consumption trend Guangdong Chj Industry Co.Ltd(002345) , and the most enterprising jewelry leader Chow Tai Seng Jewellery Company Limited(002867) .
(5) food and beverage: the business performance of beverage channel is high and flexible, and the high growth of food industrialization continues. Such as Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) fine wine service provider and Shanghai Hi-Road Food Technology Co.Ltd(300915) leading brand of vegetable fat and cream.
Risk tip: the epidemic situation outside China is repeated, and the capacity expansion is less than expected; International trade friction intensifies
