Textile And Clothing: Economic Downturn &Nbsp; Brand Clothing Defensive Will Highlight

Weekly market review

This week, A shares were not affected by the sharp rise in European and American stock markets, and continued to decline. As of Friday's close, the Shanghai Composite Index closed at 2482.34 points, and Shenzhen Securities Index closed at 10878.23 points. This week, the Shanghai Composite Index, Shenzhen stock index and Shanghai and Shenzhen 300 fell 0.62%, 0.13% and 0.62% respectively.

This week, Everbright textile and garment sector fell 0.66%. Spin Plate fell 0.69%, the clothing sector fell 0.63%, and the market is basically flat. Most of the stocks this week showed a trend of concussion, with no obvious highlights. The outstanding performance of the mid - market stocks is relatively good, with the highest gains of meinda and VICCO, and the recent decline of Meyer, which has been badly affected by the negative news, is much larger this week.

In view of the European debt crisis has not yet been eradication and domestic inflation remains high, A shares are difficult to get out of the obvious rise. The textile and garment sector, especially the clothing sector, is still one of the preferred sectors for weak market investment. We continue our recent investment logic and recommend that we should deepen the domestic market, have higher brand bargaining power, and have less influence on clothing sales and home textile enterprises.

　 Industry news developments:

(1) Kai Jie digital knitwear and Hundred round trousers industry (2) the export price of footwear products in Wenzhou, Zhejiang increased steadily in 1-8 months; (3) the US retail sales growth in September 16th was no better than expected; (4) Hong Guo international carried out the battle with IPO in Hongkong to the three largest female shoe giants facing the capital war; (5) TOYOTA textile intends to expand its seat business to the European market; (6) XTEP's first half year inventory reached 887 million, with an increase of over 9; (7) Japan's UNIQLO wants to be promoted to the world's largest retail clothing brand, and wants to open new stores in China every year. (100) net profit in the fiscal year has declined; (IPO) industrial textiles have become a new growth point in the textile industry; (E) Everbright Securities "brand dress Summit Forum" was successfully held in Shanghai. The first application will be held in September 16th.

　　 Dynamics of listed companies:

(1) Fu Anna: the subsidiary company is completed. Business circles Change grade procedure; (2) Pathfinder: agree to grant the reserved option in batches; (3) Fung bamboo textile: capital increase Shanghai Xingye venture capital; (4) Xinye Textile: sign mutual insurance agreement; (5) Hua Fu color spinning: change part of the implementation location of the investment project; (6) Xinhua Kam: major asset reorganization framework plan and postponed resumption.

　　 Industry data summary:

Raw materials: grade 328 cotton spot: 19709 yuan / ton (0.45%); American cotton Cotlook A:122.30 cents / pound (1.79%); viscose staple fiber: 19700 yuan / ton (1.03%); polyester staple fiber: 14000 yuan / ton (2.04%).

US Department of Agriculture: the US Department of Agriculture released the world monthly report on cotton supply and demand. Compared with last month, global data in 2011/12 only made minor adjustments. Output has risen slightly, global consumption has not changed, and Global trade has declined slightly. The end of the world inventory is expected to be 11 million 300 thousand tons, slightly lower than the previous month, higher than the initial inventory of 18 percentage points.