Study On Investment Value Of HeiLan Home Company

The apparel industry is a traditional pillar industry in China and plays an important role in the economic development of our country.At present,our country has become the largest garment producer and exporter in the world.Although the growth of China’s garment industry has been declining due to the slowdown of China’s economic growth and the slow recovery of the world economy in recent years,the textile and apparel industry,as an important pillar of China’s national economy and the main source of export earnings,has been strongly supported by the government.In 2010,the national "Twelfth Five-Year Plan" put forward the grand goal of building China into a textile power by 2020,and at the same time proposed "to develop and expand a number of large textile enterprises and groups with strong intellectual property rights,strong brand and resource integration capabilities.Increase market concentration of textile and apparel brand operators,and form 20 brand apparel textile enterprises with a marketing network covering the whole country and an annual sales revenue of more than 10 billion yuan." This shows that the leading domestic garment enterprises will become the main target of national industrial policy,with great potential for future development.Because the leading domestic garment enterprises are mostly listed companies,,there are also many investment opportunities for investors.This article selects the domestic leading men’s clothing enterprises Heilan home Co.Ltd.to carry out a case study of the Investment Value of Listed Companies.On the basis of studying the theory of related investment value analysis.this paper analyzes the investment value of Heilan Home Company by the top-down fundamental analysis.Firstly,this paper analyzes the macro environment of apparel companies and the growth,periodicity and competitive environment of the men’s clothing industry.Secondly it analyze the company’s fundamentals.Using the SWOT analysis method to judge the company’s industrial competitiveness and strategic choices.Meanwhile taking the Company’s financial annual reports for the past five years as the object,select the relevant financial indicators to evaluate the company’s solvency,operational capability,profitability and growth expectations.Thirdly through analyzing the historical financial data to predict the future earnings and dividend growth of the company,using the DDM and the P/E ratio model to estimate the intrinsic value of the company’s equity.Finally,we come tothe conclusion that The share price of Heilan Home is seriously underestimated by the market.The company’s shares have long-term investment value.Investors are advised to increase their holdings.In the end,according to the situation that the value of Heilan Home Company is underestimated,this paper puts forward corresponding countermeasures and suggestions from the perspective of capital market operation,hoping to help Heilan Home raise the investment value of the company and maximize the interests of the shareholders.