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Textile Machinery: Industry Upward Cycle To Guide Stocks To Go Higher

2011/4/30 15:26:00 46

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Manufacturing Industry Of Textile Machinery Industry

Yesterday, the A share market dropped sharply in the sharp fall, and the Shanghai Composite Index [2887.04 -1.31%] broke the support of 2900 points.

But the disk shows that the standard shares [8.34 -3.58%], ZOJE shares [7.69 0.92%], Jingwei Textile Machinery [15.05-0.73%] and other textile machinery stocks are still relatively tough, ZOJE's Japanese K-line chart has more long-term buying trend, so how do we view this information?

Increase in cost and speed of textile mechanization

From the perspective of industry development, the demand for downstream is still optimistic.

According to statistics, from 2004 to 2010, the annual average compound growth rate of the net fixed assets of clothing and footwear industry in China was 40.64%. In 2010, China's clothing shoes and hats

manufacturing industry

Actual investment in fixed assets amounted to 137 billion 90 million yuan, up 32.96% over the same period last year.

Still maintained a relatively high growth rate.

It can be seen that the investment in fixed assets of clothing and footwear industry is still in the high growth trend in the future, which opens up the room for the growth of textile machinery.

Moreover, in recent years, the cost of manpower has increased rapidly.

The average wage of the workers in the clothing and footwear industry was 1000 yuan / month / person.

But with the pressure of inflation and the structural changes of migrant workers in recent years, the average wage of workers in clothing and footwear industry has increased rapidly to 1500 yuan / month / person, or even higher.

For enterprises in clothing and footwear industry, the trend of using machinery instead of manual labor is very obvious.

Because a factory of 1000 people will pay more than 6 million yuan per year just because of the increase of manpower cost.

In this context, these clothing and footwear industries will start to use machinery in large quantities instead of manpower.

It is worth noting that large textile machinery is replacing small and medium sized enterprises.

Mechanics

The trend of the textile industry is becoming more and more obvious. Taking textile long cars as an example, at present, the production capacity of long textile cars is 2.5 times that of the short ones. The labor force of long vehicles is shorter than that of the short ones, and the labor force of the 10 thousand cars is 80 or so. If only 20 people are required to use long cars, the reason for saving so much labor is that the short cars need artificial winding, while the long cars can automatically machine the yarn, and the long vehicle technology content is obviously higher than that of the short ones, which further aggravates the trend of textile mechanization.

The upward industry cycle gives high growth expectations.

At the same time, the structure of international textile equipment has changed significantly. Germany's 100 Fu, SINGER and Japan SINGER have been closed down. During the financial crisis, major manufacturers of Du Kepu and heavy machinery are also laying off workers. This shows that China has become the only production base in the world and will become the leading position in the world's textile equipment industry, which will also promote the prosperity of the textile machinery industry.

However, the global textile giants are facing the trend of rising labor costs. Under this background, China is not only exporting textile and clothing, but also selling textile machinery.

Taking industrial sewing machines as an example, in 2010, the structural pformation of China's industrial sewing machine exports accelerated. The proportion of automatic products in industrial sewing machines increased from 42% last year to 48% this year, and the proportion of exports from 45% last year to 52% this year.

From the export market, China's industrial sewing machine export market mainly concentrated in Brazil, Singapore, India and other regions in 2010.

In 2011, the market export growth of Brazil, Singapore, Russia and Turkey was gratifying.

Because of this, China's textile machinery industry has experienced a strong rebound trend in recent years.

Still in industry

Sewing machine

For example, in 2008, industry revenue fell 24.96%, profits fell 73.62%, revenue in 2009 fell 2.78%, basically stopped, and profits grew 26.75%.

In 2010, revenue grew by 48.02%, and profits increased by 147.49%.

A strong recovery is a foregone conclusion.

The performance of the listed companies is also showing a significant upward trend.

In 2010, the main business growth of standard shares and ZOJE shares was 101% and 124% respectively, while Duke F De's growth rate was 2009. In 2010, it was -42.70% and -11.17% respectively, while heavy machinery companies were -32.05% and -21.00% respectively, showing a downward trend.

This has further confirmed the upward industrial cycle of China's textile machinery industry.

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Pay close attention to leading varieties of industry

From past experience, once the industry has entered a strong rise cycle, the profitability of the industry's leading stocks will continue to soar, so that long-term funds will be favored. ZOJE's recent Japanese K-line chart is the best explanation.

Therefore, in the operation, investors are advised to take an active interest in ZOJE shares.

At the same time, Jingwei Textile machinery, standard shares and founder motor [15.96 -5.00%] and other stocks can also be tracked.

Among them, Jingwei Textile Machinery's profitability elasticity expectations are also more optimistic, not only textile machinery, but also trust company equity, therefore, it is recommended that investors actively follow.