First of all, we need to understand that the real meaning of investing** is to find quality companies with sustained growth potential and low valuations. In the A** field, Biyin Levin and SAINT ANGELO, as well as the H-share Bosideng and Anta, these companies not only performed well in their respective fields, but also showed sustained and rapid growth momentum.
These surviving and growing companies are not accidental or short-lived successes. They are all focused on their core business, committed to producing high-quality products, and striving to enhance the brand influence. In an ever-changing market environment, they are always keen on insight and adapt their strategies to market demands.
In addition, these companies have shifted from a simple store expansion model to a model that relies more on organic growth in a single store. In the first half of 2019, the growth rate of single-store sales of Biyin Levin and SAINT ANGELO exceeded 40%, while Bosideng's single-store sales doubled. Behind these endogenous growths, it reflects the enhancement of their product power and brand influence.
At the same time, Jinhong Group is going through a special stage, that is, the promotion of the potential energy of the Teenie Weenie brand. After experiencing the huge debt pressure caused by the merger and acquisition, the company has now shifted its focus to the development of its main business. Starting from 2023, the offline channel will be more transformative, and we are optimistic about the improvement of product power and terminal store sales, which will further promote the improvement of brand power. It is worth mentioning that both Bosideng and SAINT ANGELO participated in the additional issuance of Jinhong Group, which also injected new vitality into the future development of Jinhong.
However, due to consumer concerns and a lack of confidence in the business model of the apparel industry, the current valuations of these high-quality companies appear to be quite attractive. Biyin Leving, SAINT ANGELO and Jinhong Group, their valuations are 14 times, 10 times and 9 times respectively compared to the 2024 performance expectations. This means that, from a valuation perspective, there is a large space for them. Moreover, once the results of the first quarter of 2024 are realized, the stock price is expected to usher in direct momentum.
As a necessity of life, the market demand for clothing has always existed. However, over the past decade, it has become increasingly difficult for new market players to enter the industry. At the same time, those who are not focused enough or change their strategies frequently are gradually being eliminated from the market. In this context, we firmly believe that companies that focus on their core business and continue to innovate and build their brands will have sustainable vitality and growth.
To sum up, it is no accident that Jinhong Group was recommended at this time. It is based on an in-depth analysis of the company's future development prospects and an accurate grasp of market trends. We believe that Jinhong Group will stand out in the future market competition and bring rich returns to investors by virtue of its excellent product strength, brand influence and channel advantages.
A shares