The Steady Increase In The Domestic Textile Market Will Increase The Export Growth In The First Half Of The Year.

The amount of textile and clothing exports in April was greatly increased.

According to statistics from the General Administration of customs, China's textile and apparel exports totaled 68 billion 500 million US dollars in 1-4 months in 2011, an increase of 27.39% over the same period last year.

Among them, textile exports amounted to $28 billion 931 million, an increase of 34.05% over the same period, clothing and accessories.

Export growth in the first half of this year will exceed the same period last year, but the growth rate will decrease in the second half.

The 2 quarter of 2011 will be

The advantages of the complete industrial chain continue to guarantee the order of textile and clothing in 2011.

Although the price increase of domestic exports by 20% to 30% is generally unacceptable to foreign businessmen, some European and American customers have begun to reduce their purchases in China, and some low-end goods will be purchased more from Southeast Asia. However, China has a complete industrial chain advantage.

Therefore, we think that the pfer of orders is limited. Under the influence of the domestic textile industry chain advantage and the rigid demand of Europe and America, foreign countries have greater dependence on Chinese products. In 2011, domestic textile and garment exports will continue to grow.

In 2011, the adverse factors such as rising raw materials and labor costs will polarize enterprises in the industry, and "order to large enterprises" will make leading enterprises more interested in the quality of orders.

At present, labor costs rise 20-30% will affect 70% of the textile and garment industry.

The gradual rise of cotton prices in the industrial chain will enable many small and medium-sized enterprises to withdraw from the market competition.

In the future, in the era of high cotton prices, the structural readjustment of textile industry is inevitable. After a big shuffle, the enterprises will be polarized and the industry will appear "strong Heng Qiang, and the weak will be eliminated".

Advantageous resources will accelerate to large enterprises.

Orders are concentrated on large enterprises, and large enterprises' market discourse power is increased.

As far as the current situation is concerned, the large textile export enterprises generally reflect the good order in early 2011, and have made preparations for expanding production.

In addition, SMEs do not dare to take orders, large enterprises have larger order options, and order quality is valued by these enterprises.

Focus on yarn, grey fabric and fabric leading enterprises.

Looking forward to 2011, we believe that the domestic market of textile and apparel industry will continue to maintain steady growth under the environment of domestic consumption upgrading.

On the export side, although the overall export growth of the industry will slow down in the second half of the year, this is not an order problem. Rather, most of the small businesses are forced to reduce the quantity of orders from the cost of raw materials. This will lead to the concentration of orders to large export enterprises, and the leading enterprises in various sub sectors will have more opportunities to choose orders.

In 2011, leading enterprises in various sub sectors will have more opportunities for profit growth.

Therefore, we believe that we should focus on the leading enterprises in various sub sectors of the textile industry in 2011.

Notable listed companies are: Lu Tai A (000726), Huamao share (000850), Xinye textile (002087), Huafu color spinning (002042), Weixing stock (002003).

Risk warning: in the future, the excessive appreciation of RMB will engulf enterprises' order profits, and the future global economic trend will directly affect the order quantity of enterprises.