The Fundamentals Of Textile And Garment Industry Are Still In Boom.

　　 In July, portfolio returns exceeded industry index 3.42%. Our portfolio allocation in July Wedding bird (25.98, -0.12, -0.46%), Weixing share (22.77,0.57,2.57%), Lu Tai A (9.05, -0.10, -1.09%) and Huafu color spinning, among which, Weixing shares were affected by medium-term performance exceeding expectations, and achieved 33.61% positive returns this month. Due to the boom in domestic sales and exports, and the low price reserve of raw material prices, some production enterprises exceeded expectations. In July, the company led the sector.

The fundamentals of the industry are still in boom. Export growth and performance growth of production enterprises have reached a relatively high level. The annual export growth rate is expected to be around 15%, which is expected to exceed 10% of the expected market expectations in the early stage. The retail sales of brand domestic enterprises are still at a high level, and the order data of autumn and winter are more optimistic than that of the first half. Good consumer confidence index and terminal retail data provide a good foundation for the 2011 spring and summer order meeting held in 9 and October.

In August, maintain the industry "neutral" rating: (1) the previous July plate performance exceeded the Shanghai and Shenzhen 300 (2850.829, -25.61, -0.89%) index 15.4 percentage points, the plate relative to all A shares value premium reached the highest level of history; (2) production enterprise performance growth in the historical phase to high point, July experienced a round of inflation; (3) the brand clothing enterprise currently in 2010 dynamic PE is more than 30 times, in the process of large market adjustment, the valuation further promotion of less dynamic. Investment portfolio: due to the pursuit of relative returns, based on the fundamentals of listed companies, taking into account the expected performance, valuation, and issuance of the interim report, we suggest that in August, the investment portfolio will be configured as a good bird, Weixing stock, and Rutai A. Huafu color spinning Give 25% weights respectively.