Textile And Apparel: A Successful Ending In The First Half Of The Year &Nbsp; A Decline In The Second Half Of The Year.

In the first half of the year, the export volume of textile and clothing increased significantly.

According to statistics from the General Administration of customs, China's textile and apparel exports totaled US $111 billion 725 million in the first half of 2011, an increase of 25.74% over the previous year, of which 45 billion 902 million US dollars in textile exports, an increase of 28.80% over the same period last year, and exports of clothing and accessories reached US $65 billion 823 million, an increase of 23.69% over the same period last year. This result is in line with our expectations. The main reason for the substantial increase in export volume is:

stay Raw material Under the environment of rising prices and labor costs, domestic export enterprises have increased the prices of export products, and the prices of export products have increased considerably, resulting in a substantial increase in export volume.

Export growth in the first half of this year exceeded the same period last year, but the growth rate will slow down in the second half. The 2 quarter of 2011 will be the peak delivery period of the highest price of textile and garment products. This is due to the fact that most of the products delivered in the two quarter were signed at the time of high cost of raw materials. Therefore, we believe that the export volume of domestic textile and garment will continue to increase substantially in the first half of this year, and the growth rate will continue to exceed that of the same period of last year. However, in the second half of this year, the export products will decline in the case of raw material prices, and the growth of export volume will slow down.

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 spanfer 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.

Rising costs will polarize the industry. " Order Centralization of large enterprises makes 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.

Continue to focus on yarn. Grey 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, Huamao shares, Xinye textile and Huafu color spinning.

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.