Guotai Junan: Demand For Textile And Clothing Will Remain Strong In The Second Half Of The Year.

July 2010 China clothing And the export volume of textiles in the month of 19 billion 928 million US dollars increased by 26.23% compared with the same period last year, an increase of 10.37% over the month of June. Textile exports amounted to $7 billion 278 million and clothing was US $12 billion 650 million. 1-7 Chinese clothing textile The total export volume was $106 billion 86 million, an increase of 22.9% over the same period last year.

Export growth in 1-7 months is mainly driven by demand from the United States and Southeast Asia. In the 10 years and 1-7 months, the total export volume of garment and textile industry to the EU increased by 19.5%, the total exports to the United States increased by 29.9%, increased by 26.9% to Southeast Asia, and increased by 0.8% to Japan.

Export growth will come mainly after September. European Union With further improvement in US demand, exports to the EU are expected to remain on a year-on-year growth rate, and growth in exports to the US and Japan will be lower than the two quarter.

On the whole, the monthly export data will decrease, which will remain at about 20% year-on-year.

The total retail sales of clothing and textiles in July were 38 billion 800 million, up 24.2% over the same period last year, down 6% from June. In 1-7, the total retail sales of clothing and textiles reached 313 billion 200 million yuan, up 25.1% over the same period last year.

Industry demand is strong, and textile and clothing output is growing faster. It is expected that industry revenue will continue to maintain a relatively high growth in the second half of this year. However, profit margins will decline as a result of factors such as raw material prices and rising labor costs.

The Shanghai Composite Index has fallen by 18.95% since the beginning of this year, and the Shanghai and Shenzhen 300 has dropped 18.33%. The textile and garment sector is up 5.32%. The latest Shanghai Composite Index has an overall P / E ratio of 19.79 times, and the Shenzhen composite index has a 46.94 P / E ratio. The overall price earnings ratio of the textile and garment sector is 42.44 times higher than that of the big market, slightly lower than that of the small and medium-sized board.

We believe that the industry demand boom will continue in the second half of the year. We expect annual exports to grow by 20% over the same period last year, while domestic sales will grow by 25%, but profit margins will decline. Considering that the valuation of the industry is higher than the market, it maintains a "neutral" rating of the industry.

This month's monthly report focuses on the planned shares allotment, the expansion of production capacity, the button industry leader Weixing shares, and the zipper industry leader in the zipper industry, whose revenue growth and profit margins increase. The recommended varieties include Rutai A Huafu color spinning.