High Quality Textile And Garment Retail Enterprises Will Develop Rapidly In The Opportunities.

Industry strategy: we always believe that textile and garment retail enterprises have short and medium term investment value, so they should adopt buy and hold strategy:

It is understood that textile and garment retail enterprises 8/9 month orders will meet market expectations, the growth rate has reached or even slightly exceed the level of 3/4 months;

The Mid Autumn Festival is linked to the national day, and the market is in good condition.

We think the future.

We believe that the textile and garment retail enterprises have been at the time when the market thought that the upper limit of reasonable valuation should be bought and held. The decline is the opportunity to buy, unless the company's management strategy is not in line with the prevailing market conditions.

Since the beginning of this year, the textile and garment retail enterprises have experienced a substantial increase, and the dynamic P / E ratio is 30-45 times, and some of the mediocre enterprises also get an overvalued value. We believe that the textile and garment retail sector will be differentiated in the future. Only those enterprises with high quality and sustained growth can maintain the current valuation level.

Because of the soaring raw materials, labor costs and appreciation, we believe that gross margins of export and manufacturing textile enterprises will decrease, only trading opportunities.

Recommended portfolio: still recommended to focus on seven wolves, Weixing, Luo Lai, Fu Anna, Meng Jie, good news birds and other companies, Hong Kong stocks recommended Anta and BELLE.

Industry perspective

Exports and domestic sales of textile and garment industry have maintained rapid growth.

In 1-8 months, textile enterprises above Designated Size realized 27665 yuan in revenue and 125 billion 200 million yuan in total profits, while the growth rate of 24.3% was lower than that of 50.7%, but the gap had narrowed.

The growth rate of domestic textile and garment retail remained at a high level. The total volume of wholesale and retail clothing and textiles increased by 23.8% in the first half of August. In the first half of July, the total retail sales of apparel retail sales increased by 22.1% in the first half of the year, all near the highest level in history.

In the 1-8 months, the total export volume of textiles and clothing increased by US $125 billion 200 million, an increase of 23.8% over the same period last year, of which textiles and clothing exported 505 and 74 billion 700 million US dollars, respectively, up 31.4% and 19.2% respectively, which is close to the golden age of 03-07.

We believe that domestic sales will continue to maintain rapid growth in the 4 quarter, and export growth will drop. The gap between the total profit growth and revenue growth will continue to narrow in the future.

With the increase of income level, the consumption intention of domestic residents keeps rising.

The rigid demand for textile and apparel in Europe and the United States is strong, but the obvious growth is hard to come up. The export growth in the 4 quarter has dropped month by month.

As cotton prices skyrocketed, leading to the rise in chemical fiber prices, and labor costs continue to rise and the impact of appreciation, the 4 quarter gross profit margins continue to decline, the industry's total profit growth may drop rapidly, and the gap between income growth will be further narrowed.

The cotton price has gone up crazily, and the fund has played a larger role. It already has certain financial attributes and brings great difficulty to the price expectation. We believe that the price of raw materials, including cotton, will still rise in the face of the peak season in October, including cotton, which will bring great adverse effects to the operation of the enterprises.

Industry strategy: we always think that textile and clothing retail enterprises have short and medium - and long - term investment value, and should adopt buying and holding strategies:

It is understood that

The Mid Autumn Festival is linked to the national day, and the market is in good condition. Consumption is expected to continue to flourishing during the two sessions; {page_break}

We believe that the future growth of textile and garment retail will continue.

We believe that the textile and garment retail enterprises have been at the time when the market thought that the upper limit of reasonable valuation should be bought and held. The decline is the opportunity to buy, unless the company's management strategy is not in line with the prevailing market conditions.

Since the beginning of this year, the textile and garment retail enterprises have experienced a substantial increase, and the dynamic P / E ratio is 30-45 times, and some of the mediocre enterprises also get an overvalued value. We believe that the textile and garment retail sector will be differentiated in the future. Only those enterprises with high quality and sustained growth can maintain the current valuation level.

Because

Recommended portfolio: still recommended to focus on seven wolves, Weixing, Luo Lai, Fu Anna, Meng Jie, good news birds and other companies, Hong Kong stocks recommended Anta and BELLE.

Industry perspective

Exports and domestic sales of textile and garment industry have maintained rapid growth.

In 1-8 months, textile enterprises above Designated Size realized 27665 yuan in revenue and 125 billion 200 million yuan in total profits, while the growth rate of 24.3% was lower than that of 50.7%, but the gap had narrowed.

The growth rate of domestic textile and garment retail remained at a high level. The total volume of wholesale and retail clothing and textiles increased by 23.8% in the first half of August. In the first half of July, the total retail sales of apparel retail sales increased by 22.1% in the first half of the year, all near the highest level in history.

In the 1-8 months, the total export volume of textiles and clothing increased by US $125 billion 200 million, an increase of 23.8% over the same period last year, of which textiles and clothing exported 505 and 74 billion 700 million US dollars, respectively, up 31.4% and 19.2% respectively, which is close to the golden age of 03-07.

We believe that domestic sales will continue to maintain rapid growth in the 4 quarter, and export growth will drop. The gap between the total profit growth and revenue growth will continue to narrow in the future.

With the increase of income level, the consumption intention of domestic residents keeps rising.

The rigid demand for textile and apparel in Europe and the United States is strong, but the obvious growth is hard to come up. The export growth in the 4 quarter has dropped month by month.

As cotton prices skyrocketed, leading to the rise in chemical fiber prices, and labor costs continue to rise and the impact of appreciation, the 4 quarter gross profit margins continue to decline, the industry's total profit growth may drop rapidly, and the gap between income growth will be further narrowed.

The cotton price has gone up crazily, and the fund has played a larger role. It already has certain financial attributes and brings great difficulty to the price expectation. We believe that the price of raw materials, including cotton, will still rise in the face of the peak season in October, including cotton, which will bring great adverse effects to the operation of the enterprises.