Stable Growth Of Domestic Apparel Business

With the adjustment of capital market, the downturn of the real estate industry and the growing shortage of consumer confidence in China, the company has come to the point where choices need to be made. After all, the best period is over, and the rest will be more difficult.

From the perspective of existing businesses, the growth of domestic clothing business is stable, but the cultivation of new brands and new markets will take some time. The development prospects of the export market will depend on the running in effect with the new Ma company; the real estate business will face more difficulties in 09 years; and for the once brilliant equity investment business, the company also intends to fade away.

So in the short term, the company is facing more difficulties than opportunities.

From the valuation point of view, since nearly 4 of the income comes from real estate, we use the NAV valuation method to evaluate the value of the company.

We find that the volatility of equity investment price and house price is highly sensitive to the value of the company, while the change of textile and apparel business performance has a much smaller impact on the company value.

Consider the pessimistic situation: if the equity investment target price falls to 0, and the house price falls by 30%, the value of the company is about 3.04 yuan; while under the optimistic situation: the price of equity investment is doubled, and the house price rises 50%, the value of the company can reach 13.45 yuan.

Editor in chief: Hao Ling