Footwear Sales In China Are Low And Risk Of Rising Costs

< p > if the per capita income is no longer growing faster, the company's revenue growth will continue to maintain a low level, and profit margins will still be affected by employee expenditure and rent growth, and future earnings will not be optimistic.

Increasing online sales may reduce the cost of rents, but perhaps only for medium and low end products.

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< p > > future a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > industry company still has to face the dilemma of slowing sales growth and rising expenditure, production growth will slow down, so as to accelerate the reduction of previously stored stock, and the average selling price will also be lowered, thereby stimulating sales.

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P (XinDa) (0738 HK), driven by sales of high-end goods, will continue to grow ahead of the market in terms of future revenue growth.

At the briefing, the management revealed that there was a slow-moving inventory of about HK $30 million. If it could not be sold again, it might be necessary to reduce the inventory value. However, the group would sell its property for profit or offset the impairment expenses.

The company is less affected by slower growth in disposable income of residents.

At present, the valuation of the company is not high, the dividend payout is stable, and the stock price growth in the future will lead the industry.

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< p > BELLE (1880 HK) operating capacity is good, although the income and profit growth began to change from the first half of 2010, and the income growth follows the market slowdown, but the operating profit rate can still be controlled not to fall sharply, and the cost control ability is strong. I believe that the footwear business earnings will be slowed down by the slow growth of the income, and the number of units will decline. The movement of a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" products may increase, and the overall profit is expected to have a high number of units. The same quarter sales in the third quarter have not yet improved, the assessment will continue to decline.

If the same store sales growth picks up, the market will raise its valuation.

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< p > Daphne (0210 HK) in the 13 quarter of the 13 quarter, same store sales fell 18%, revenue still fell sharply, and the number of stores began to decrease. However, in the interim results, the group still failed to control the cost well. It was believed that its products were low in price and needed a certain amount of sales to support fixed expenses (such as rent and employee expenses). If sales volume was insufficient, the profit margin would be greatly affected.

Unless there is a significant improvement in the sales of the same store, the company will probably regress substantially in the next few years.

Although the share price has fallen for a long time, valuations are still low, as expected profits will fall sharply, and it is still not the time to invest in the stock market, because the cost control has not improved.

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< p > at present, if we invest in footwear companies, we still have to face the risk that the growth of the whole shoe retail market will continue to slow down and the cost is still rising. We believe that if the retail data is better, the market will have the confidence to give a higher valuation. Investors should pay attention to the risks when the < a href= "//www.sjfzxm.com/news/ index_s.asp" > investment < /a >

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< p > to learn more about the investment value of footwear companies, please pay attention to BELLE International (1880 HK), Daphne (0210 HK), XinDa (0738 HK) < /p >