Under The Negative Factors, Brand Service Enterprises Are More Growing.

1. In February, the export growth rate of textile and garment industry slowed down sharply, and the proportion of textile and clothing cumulative exports continued to decline, reaching about 13% level.

Fluctuations in growth rate are related to the Spring Festival. We believe that with the gradual arrival of the peak season of industrial sales, the growth rate is expected to pick up in March.

However, the slowdown in export growth is still hard to reverse.

The accelerated depreciation of the US dollar is the main reason for the acceleration of RMB appreciation.

It is possible for exporters to negotiate with dealers to replace the US dollar settlement with other currencies such as the euro, to a certain extent, to relieve the pressure of appreciation.

We find that the rate and magnitude of the decline in export growth seem to be larger than that of domestic demand, leading to a decline in overall demand.

Even at a time when production growth is slowing down, the situation of supply exceeding demand has not been effectively alleviated.

The most important manifestation is that the growth rate of clothing PPI and CPI has significantly lagged behind the level of the whole country and other industries.

The hang ups between clothing PPI and CPI indicate that dealers are forced to give up some profits in the retail chain, and the reason why it is so important is that their competitors are numerous.

While export growth has slowed down, we have also observed a slowdown in the growth rate of major textile products, especially yarn and cloth products.

In addition to the larger fluctuation in the output of western style clothing, the output growth of other products is more stable.

Silk production increased even to a certain extent.

1. In February, due to the impact of off-season production and sales, coupled with the combined effect of the decline in export growth, the demand for major textile materials was weak and prices continued to slump.

And entering the March, with the advent of the peak season, prices rebounded.

From the financial data published by the annual report, the textile companies are obviously affected by the negative factors of the industry. The brand clothing enterprises show stronger growth and compression under the background of many unfavorable factors.

Investment income is still the main reason for the substantial increase in the performance of some enterprises, of which investment income accounts for more than 20% of net profit accounted for about 24% of enterprises.

We continue to give neutral ratings to textile enterprises in the middle reaches of manufacturing, while brand clothing companies that have the ability to control downstream channels continue to increase their ratings.

Continuous recommendation companies: good news birds (002154), seven wolves (002029), Weixing shares (002003), Rebecca (600149).

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