Textile And Apparel: Home Textile Industry Is Thriving In Garment Industry.

The growth of national income will bring long-term prosperity to the industry.

The "12th Five-Year plan" plan proposes to speed up the growth of urban and rural residents' income, especially for urban residents' per capita disposable income and per capita net income of rural residents, which will increase by more than 7% annually.

Drawing lessons from Japan's "national income doubling plan" in 1960s, China's future clothing consumption will not only increase in the first tier cities, but also in the two or three tier cities, which will last more than 10 years.

Demand: the growth rate of the world economy may be slower than that of 2010, and the decline of external demand will become a threat factor in the second half of the year. Domestic retail sales of textile and clothing will maintain a good upward trend, but the downward trend of consumer confidence indicates that social consumers are not worried about the future.

Supply: cotton prices fall

The impact of stock prices is relatively small; the growth rate of fixed asset investment has remained stable; rising costs, rumors of possible adjustment in export tax rebates and the pressure of RMB appreciation have made the textile industry unpredictable.

The listed companies in the textile industry can be divided into

And home textile five sub sectors.

Except for home textiles in the early stage of brand development, the rest belong to long developing and mature industries.

In the cotton spinning, wool spinning, dyeing and silk industry, companies with better operating conditions often maintain a price earnings ratio of about 15-25 times, but most companies have poor profitability and high P / E ratio.

At present, the industry's growth rate is high, policy stimulus factors and prospects are optimistic.

Clothing industry listed companies can be divided into outdoor, business men's clothing, fashion leisure and women's shoes four sub sectors.

The profit rate of the industry is generally higher than that of the textile industry, and the outdoor and fashion leisure industry is in the growth stage. The industry has the highest growth rate and the highest growth rate, but the valuation is high. The women's shoes and business men's clothing industry are in a period of intense competition, the valuation is low, and the performance stability of the leading companies is the best.

In the textile industry, we focus on the leading enterprises that can pfer price increases and have pricing power. In the clothing industry, we focus on brand reputation, grasp certain channel advantages and enterprises with good channel strategy.

According to the life cycle of each sub industry, the enterprises belong to the growth stage, pay attention to their growth, belong to the mature enterprises, pay attention to their performance stability, finally consider the valuation factors and risks, choose seven wolves, Luo Lai home textiles, Semir clothing, Pathfinder and Lu Tai A.