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High Quality Textile And Apparel Retail Enterprises Have Both Offensive And Defensive Capabilities.

2011/6/14 16:03:00 51

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Offensive And Defensive Business For Textile And Apparel Retailers

Industry strategy: high quality textile and garment retail enterprises have strong growth performance, and plate valuation advantage is obvious (seven wolf 11 years dynamic price earnings ratio of 23 times, Semir and nine herdmen about 25 times, Luo Lai, fuanna and Meng Jie three home textile enterprises 30 times, Weixing 15 times), and cotton price decline is conducive to business operation, in the current market downturn, the retail sector is offensive and defensive;

Recommended portfolio: we continue to recommend high-quality textile and apparel retail businesses:

Seven wolves

, Luo Lai, Fu Anna, Meng Jie, Wei Xing, Semir and nine Mu Wang, in addition, Yantai spandex aramid 1414 industrialization project put into operation, Aramid 1313 continues to sell well, it is also noteworthy.

Industry perspective

Cotton continues to be a key factor affecting the industry in the second half of the year: the price of textile raw materials fluctuates basically with cotton prices, and the cotton prices since the middle of March have dropped, leading to the shift of the whole raw material price center, and the gross profit margin of manufacturing enterprises has also decreased. Before the price stabilizes, the whole industry chain is hard to return to normal; however, the price reduction of raw materials is obviously beneficial to the operation of textile and garment retail enterprises, on the one hand, the cost pressure is reduced, which is conducive to the stable and improved gross margin and, on the other hand, helps consumers to increase their purchase intention, thereby promoting the growth of sales volume;

Cotton prices may stabilise in the 4 quarter. We believe that the operational range may be around 20 thousand yuan: cotton prices will be determined in the new supply and demand situation before and after October, taking into account the degree of consumer acceptance.

industry chain

In terms of operation and state policies, we believe that the possibility of fluctuations in the future will fluctuate at around 20 thousand yuan.

The policy will play a larger role in the operation of the industry in the second half of the year: national industry.

Transformation policy

In the real operation stage, the export tax rebate rate may be marked below. The management may also strengthen the enforcement of the original policies such as labor contract law, environmental protection, energy consumption and so on, so as to promote the industrial pformation. Besides, exchange rate fluctuation will also affect the operation of the industry.

Although policy adjustment may lead to damage to the export manufacturing enterprises in the short term, it helps to regulate the order of market competition and prevent excessive competition, which is conducive to the long-term development of large and medium-sized enterprises.

We still maintain the expected growth in industry efficiency: the export growth rate is around 15%, and domestic revenue growth is about 25%.