May: Weaving Plate Is Relatively Strong.

The EU is China's largest export market for textiles and clothing, accounting for over 20%.

From the beginning of June 25th to the end of the year,

At present, there are second risks in the European and American economies, but the employment rate indicators have stabilized and are showing signs of improvement.

As the employment rate improves, consumer demand will gradually pick up, and clothing demand will be dominated by rigid demand growth, which will also guarantee the export volume of domestic textile and garment enterprises in the future.

The recent RMB exchange rate reform has been put on the agenda. It is expected that there will be a slight appreciation in the year.

For the textile industry, the appreciation of RMB is a big blow to small and medium-sized enterprises, but has a relatively small impact on large enterprises with stable customers and bargaining power.

At present, 80% of domestic textile and clothing exports are settled in US dollars, and the appreciation rate of RMB will have a serious impact on the export of domestic textile and clothing.

The excessive appreciation will make the majority of the small and medium-sized OEM export profits significantly diluted or even losses, which will affect the export enthusiasm of enterprises.

Large enterprises have a long-term stable customer base. After the appreciation of the renminbi, enterprises can generally reach an agreement with their customers to reduce the impact of RMB appreciation.

If large enterprises push new products, they will make up for the impact of RMB appreciation and even benefit production orders to large enterprises.

Domestic sales as main driving force for textile growth

Demand for textile and apparel is strong this year. On the one hand, it benefited from nearly 20% growth in exports, mainly because domestic sales grew by more than 25%.

Domestic clothing consumption growth began to outstrip exports in 2007, and has maintained more than 20% growth since then.

With the increase of domestic residents' income level and the acceleration of urbanization process, the growth momentum of textile and clothing domestic sales will continue in the next few years.

In the context of foreign economic trend is still unknown, and the appreciation of the renminbi is expected to strengthen the background, domestic sales growth will become the main driving force for the development of China's textile and garment industry.

Light industry and heavy stocks

Due to the difficulty of overall investment opportunities in the market, we should focus on Fu Anna, Luo Lai home textile and Dayang creation according to the individual stock management mode, industry status and market trend.

1, fuanna is a well-known domestic high-end brand home textile enterprise, 97.41% of its revenue comes from the domestic market, as of May this year, there are 1338 terminal stores.

The company plans to add 180 brand Direct stores in the next two years, and plans to add 300~400 stores every year, while developing second brands.

Gross profit margin was 46.66% in the first quarter of this year, 3.67 percentage points higher than that in 2009, and the net profit of the company is expected to be about 47 million 800 thousand yuan, an increase of 42% over the same period last year.

2, Luo Lai home textile company ranks first in the home textile industry market share, and has a relatively complete industrial chain structure, and 98.01% of its income comes from the domestic market.

Because of the larger profit margins of the direct battalion, in recent years, the company has intensified the construction of the direct channel, inclined to adopt the direct mode in the central cities, and joined the surrounding cities, increasing the number of Direct stores in the process of developing new markets, and increasing the proportion of direct sales in total sales.

After the completion of the R & D center, the R & D strength will be further enhanced, and the added value of products and the continuous introduction of new products will not only bring about the growth of sales revenue, but also predict the gross profit margin will increase.

3, the business of Dayang genesis is mainly foreign trade. At present, the gross profit margin of foreign trade is only about 20%, while the gross profit margin of its own brand creation and Kamen is 40%~50% and 30%~40% respectively.

In order to reduce the impact of ineffective exports, the company develops low-end brand network direct selling and single volume single cut business, from export to domestic market pformation, in order to change excessive dependence on foreign markets, reduce the impact of future RMB appreciation on the company's operation, and enable the company to enter a new growth stage.