Textile And Clothing: Export + Domestic Sales High

In July, portfolio returns exceeded industry index 3.42%. In July, our investment portfolio was good news 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 them, Weixing shares were affected by medium-term performance exceeding expectations, and achieved 33.61% positive returns this month.

Because For the domestic market And exports are booming and raw materials. Price Rising middle and low price reserves made some production enterprises more than expected. 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, the "neutral" rating of the industry was maintained in August. (1) the former July plate exceeded the Shanghai and Shenzhen 300 (2850.829, -25.61, -0.89%) index 15.4 percentage points, the plate premium valuation reached the highest level compared to all A shares. (2) the growth rate of production enterprises was at a historically high level, and July experienced a round of inflation. (3) the brand clothing enterprises are generally more than 30 times the dynamic PE in 2010.

Investment portfolio: due to the pursuit of relative return, based on the fundamentals of listed companies, taking into account the expected performance, valuation, issuance and other expectations, we suggest the August portfolio allocation. Wedding bird Wei Xing shares, Lu Tai A and Huafu color spinning respectively give 25% weight.