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The Textile Industry Is Optimistic About The Winners In The Industry.

2008/9/8 10:57:00 12

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Development Trend Of Garment And Textile Industry

In the first half of 08 years, the listed companies in the textile and garment sub sectors showed a downward trend of profit and income growth, and the profit fell by about 50% of the total industry.

The main reason for the decline in profits is that the increase in the ratio of fees to fees is obvious.

China Daily reported that the average gross margin of textile and garment industry remained stable, but other profitability indicators declined, and the overall profitability of the industry improved. The main industry contributed and cash content increased in the same period last year.

The internal differentiation of textile and garment sub sectors is becoming more and more significant. The deficit has increased further, mainly concentrated in export processing enterprises, while domestic clothing brand clothing enterprises are eye-catching, profits continue to grow at a high speed, and a few companies with relatively monopoly advantages in the subdivision industry have also achieved good profit growth. Moreover, the leading companies with comprehensive advantages have also shown a strong ability to resist risks in adversity.

In the first half of 08 years, the profitability of the chemical fiber sub industry plummeted, mainly due to the increase in oil prices caused by the rise in oil prices, and the downturn in the polyester industry and the spandex industry, the sharp rise in raw material prices or the sharp decline in product prices led to a significant reduction in the profitability of the industry.

Industry profitability, debt paying ability and asset operation capacity indicators showed a downward trend compared with the same period last year.

We believe that polyester industry is difficult to change in the short run, and the cyclical characteristics of viscose and spandex industry are still very obvious.

In 2008, the domestic textile industry has been tested for a year. The acceleration of RMB appreciation, the increase of production costs and human costs, the domestic macroeconomic regulation and control, and the subprime lending of the United States have all deepened and intensified all negative factors. Most of the listed companies listed the negative factors in the above industries as the main reasons for their decline in business or growth.

At present, the measures to deal with the pressure of Listed Companies in textile industry include slowing down new investment, controlling expenses, expanding the upstream and downstream industries, diversifying business, adjusting profit patterns, penetrating from pure production and processing to more profitable brands and retail links, increasing investment in research and development, and maintaining the original profit level or raising profitability through continuous new product development.

We believe that the industry will experience a process of benign pformation and survival of the fittest through industrial pformation and upgrading in the short and medium term.

For most enterprises, controlling cost, adjusting product structure and changing profit pattern is an important part of their future management.

Based on the good industrial foundation, self adjustment ability and international competitiveness of the domestic textile industry, we are cautiously optimistic about the industry's predicament.

From the valuation point of view, the current 08 year dynamic P / E level of the textile industry has been lower than the lowest level of the market and industry index, and the overall market P / E rate is still higher than the lowest level of the market.

The valuation of key industries in the industry has been below or near the lowest level.

We believe that the space for further decline in the textile industry is relatively limited. In particular, the investment value of the brand retailing companies which are mainly domestic brands in clothing sub sectors is much more obvious.

At present, the industry maintains a "neutral" rating.

We should focus on the winners in the industry adversity (1) the leading brands of retail enterprises (2) with the relative monopoly advantages.

(3) a leading company with comprehensive advantages such as industry chain, internal management, cost control and diversified investment.

The space for their future growth is wider.