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In the early June, BELLE (01880) rose from 7.6 yuan to the current 9.75 level, rising by 27.8%, and it had a big win over the 8.4% index of the Hang Seng Index.

The main increase was followed by the Hang Seng Index, plus a sharp upsurge in the previous wave of consumer stocks.

At the company's operating level, BELLE's sales performance declined as the main footwear and sportswear production and distributor in the mainland. In the first quarter of June, the domestic retail sales data showed that footwear sales in the same store decreased by 1.8%, while that in sports and clothing stores increased by 15.3%.

In August 5th, the company warned that footwear sales in the same store continued to decline in the first half of the year, or there was a decline in the number of units. The stock price fell 1.72% and fell four days on that day.

In the mainland

As the growth rate slows down and retail businesses are hit by the electricity supplier, the slowdown in retail business growth is becoming normal. BELLE's strategy is not to close stores, but it will slow down the pace of opening stores, which will reduce capital expenditure to a certain extent.

On the other hand, the proportion of sports apparel business revenue will gradually increase to 38% or 40%, offset the slowdown in some shoe market, and will study the development of O2O (online to offline) mode, I believe this will have a positive impact on BELLE against the impact of e-commerce.

In terms of valuation, BELLE's current P / E ratio is at 14.435 level, lower than the median of 15.36, which is relatively low.

Overall, BELLE, as a blue chip, belongs to the retail industry. The bad news has already been basically reflected in the price. Although the profits or slipped in the first half of the year, the company's focus on improving the sportswear business will help to restore the profit in the coming half year.

On the technical side, the stock price presents a fairly healthy wave pattern. KDJ spreads upward and RSI is at a relatively healthy level of 64. If it can follow the big market down to 9.58, it can be bold.

Positive investors can also consider buying at current prices, with the target position looking for a high level of 10.16.