Under The Economic Downturn, The Textile And Garment Sector Has Become A Capital Haven.

Because of market to domestic

Amid the gloom of the market, the textile and garment sector is on the rise.

Benefiting from the optimistic expectation of the concept of "big consumption" in the second half of the year, the textile and garment sector rose 3.42% in July, ranking fifth in the major sectors.

Under the "escort" of domestic demand, a number of data show that the textile and garment industry has a good overall trend in the first half of the year, home textiles,

A share market pressure capital hedge "big consumption"

In August 5th, S & P lowered the U.S. sovereign credit rating from "AAA" to "AA+", causing a great shock to the global capital market.

The Dow Jones industrial average index, the Nasdaq composite index and the standard & Poor's 500 index fell 5.55%, 6.90% and 6.66% respectively in August 8th.

The demand for safe haven also pushed gold up 1800 US dollars per ounce, or 2.93%, to a new high.

As a part of the global capital market, A shares are hard to be independent, and the market is rapidly moving into the bottom area.

In addition to the negative impact of the external market, CPI did not usher in an inflection point in July, but also led to the market's concern about slowing economic growth and tightening capital market.

At present, inflation is still high, and the economy is in stagflation in the small cycle.

The three factors, such as the performance of Central News, the cost of capital and the external market, affect the short-term trend of the market.

While waiting for the external capital market to stabilize A share market, based on its defensive characteristics and performance support, "big consumption" stocks are against the market.

In the "big consumption" concept plate, the textile and garment sector rose 3.42% in July, ranking fifth in the major sectors.

Home textile stocks are particularly prominent.

For example, the home textile (002293) has increased by more than 15% since July, and the share price has increased from 77 yuan to 87 yuan, and the trend is obviously stronger than the market.

There are men and women's share of seven wolves (002029), which has risen from 34.10 yuan in July to around 38 yuan, and has risen by more than 14%.

The textile sector also has the trend of independent "Bull Stock". San Mao Pai Shen (000779) has attracted much attention in recent years, and has gone out of a small upsurge of 9 consecutive days. The stock price has risen more than 25%, and the share price center has risen from 11 yuan to about 15 yuan.

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Exports to good price earnings ratio reasonable textile and garment sector "blowing warm wind"

The textile and garment sector is highly sought after in the stock market, which depends on the double benefits of export data and low price earnings ratio.

According to the data released by the website of the General Administration of customs, 1-7 months, China's foreign trade import and export value was 2 trillion and 22 billion 550 million US dollars, up 25.1% over the same period last year; exports 1 trillion and 49 billion 380 million US dollars, up 23.4%; imports 973 billion 170 million US dollars, an increase of 26.9%.

In July, China's import and export value was 318 billion 770 million US dollars, an increase of 21.5%; exports of US $175 billion 130 million, an increase of 20.4%, a historical monthly high; imports of US $143 billion 640 million, an increase of 22.9%.

Among them, in 2011 1-6, China's textile and apparel exports grew by 25.74% year-on-year, and clothing exports totaled 65 billion 800 million US dollars, up 23.7% over the same period last year, while clothing imports grew by 70.2% over the same period last year, much larger than the export growth rate.

In July, China's textile and apparel exports were 25 billion 996 million US dollars, an increase of 25% over the same period, an increase of 13.53% over the previous month.

In the research report, CIC pointed out that the domestic market of textile and apparel industry continued 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, the order will be concentrated on large export enterprises, and the leading enterprises in various sub sectors will have more opportunities for profit growth.

Benefiting from good export data, recently, Xun Xing shares, China Textile shares, yeco technology, Jiumu Wang, Huamao shares and other stocks have gone out of a wave of strong upward trend.

In addition, the average price earnings ratio of the textile and garment sector is lower than the historical average and the stock risk is small.

Since July, GF Securities, Everbright Securities, state securities, credit securities, CITIC Securities and other brokerages have published several research reports, giving "holding" evaluation to the clothing and textile industry.

Everbright Securities and GF Securities are 10 consecutive "buy" ratings in 27 days.

Similarly, under the background of the global economic downturn, fund managers' enthusiasm for holding cyclical stocks has declined, and the enthusiasm of the defense sector, especially the "big consumption" class, is rising.

Merchants bond and bond securities investment fund recently bought 3 million 340 thousand shares of nine herd king, and bought Lukang Technology (601599) 370 thousand shares.

Roley home textiles (002293), the first circulation shareholder, Fu Guo Tian Hui holds 2 million 80 thousand shares in the first quarter, and has increased to 2 million 680 thousand shares in the two quarter.

Outstanding achievements in production and marketing

In addition to the two tier market, the textile and garment industry has been doing well in the near future.

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In terms of investment, according to the National Bureau of statistics, investment in fixed assets in various industries (1-6 months in 2011), the investment amount of chemical fiber manufacturing industry was 30 billion 280 million yuan, an increase of 53.3% over the same period last year, ranking second in all industries.

And textile and clothing, shoes and hats manufacturing industry ranked fifth, 96 billion 445 million yuan, an increase of 42.3% over the same period.

With the rapid growth of investment, the demand for textile and clothing has also maintained a high growth trend.

According to the data released by the National Bureau of statistics, the total retail sales of consumer goods in the first half of this year amounted to 8 trillion and 580 billion yuan, up 16.8% over the same period last year.

Among them, clothing, shoes and hats and knitwear retail sales totaled 372 billion 700 million yuan in 1-6 months, an increase of 23.9% over the same period last year, which is 7 percentage points higher than the total retail sales of consumer goods.

The higher growth rate of retail sales of textiles and clothing has weakened the market's concern about the possible divergence in volume and price.

At the same time, the recent sharp fall in raw material prices will help to alleviate the cost pressure on the upstream manufacturing side of the industry, and as the price of products is gradually accepted by consumers, the overall profitability of the industry will be significantly improved in the strong domestic demand.

Take fuanna (002327) as an example, in July 6th, the board of directors of fuanna decided to carry out stock option incentives for 166 people, and the total number of stock options was 2 million 335 thousand.

At present, fuanna has more than 1200 outlets in the country, and the key investment areas are mainly arranged in Beijing, Tianjin, Shanghai, Chongqing and Shenzhen with brand consumption ability.

Semir clothing (002563), which announced its semi annual report in August 11th, achieved a business income of 3 billion 9 million yuan in the first half, an increase of 36.64% over the previous year, and a net profit of 437 million yuan to shareholders of the parent company, an increase of 29.83% over the same period last year.

Basic earnings per share of 0.69 yuan.

After the successful listing of Semir clothing, its brands' popularity and influence were further enhanced, and the marketing channel development was more smoothly. The average unit price of the products increased year by year.

Semir apparel said that the second half of this year will further expand channels, strengthen product development and marketing innovation, and maintain the leading position in the industry.

In the first half of the year, the performance was good, and many brokerages were optimistic about Semir clothing (002563).

Galaxy Securities is expected to rely on the first tier cities to increase its layout and extend to the three or four tier cities. Semir brand is expected to maintain 700-800 stores a year in the next few years.

China Merchants Securities believes that in the next 1-2 years, the growth of fashion and leisure industry will be more obvious than that of business casual and formal clothing, and the space in the medium and long term will be broader.

Haitong Securities's textile and garment industry researcher Lu Yuanyuan pointed out that at present, the export situation of the industry is steady, and the trend of industrial orientation from export to domestic sales is more and more obvious.

Meanwhile, domestic consumption demand was strong. In the first half of this year, the total retail sales of China's textile and apparel reached 372 billion 700 million yuan, an increase of 23.9% over the same period last year, which is 7.12 percentage points higher than the year-on-year growth rate of 16.78% of the total retail sales of consumer goods.

Lu Yuanyuan judged that clothing prices would be easier to be accepted by consumers in the short and medium term, and then the sales volume would gradually rise, and the final price would go up to boost the total growth.

Lu Yuanyuan believes that the recent rise in textile and garment sector is relatively fast, and it is recommended to pay close attention to listed companies with valuation advantages in the near future.

And in the choice of investment in the field of subdivision, CITIC Securities released research report is more optimistic about the development prospects of brand men's clothing.

China's brand clothing consumption is in a high growth cycle, and the competition pattern of men's clothing industry is relatively stable. The mainstream brand has obvious advantages, and the concentration degree is expected to further improve.

Men's clothing company's channel expansion is more stable than that of casual wear companies, but because of its high brand loyalty and low price sensitivity, the menswear company has formed a very high profit level.

At present, the valuation of the brand clothing sector is 35 times the price earnings ratio, and the men's clothing industry is 26 times, and the valuation has advantages.

Shi Hongmei, a researcher in the textile and garment industry of Orient Securities, said that in the weaker market, the brand clothing enterprises have highlighted their defensive investment value.