Will The Real Role Of Clothing Be Lost?

Can the concept of "clothing" in the two tier market continue to play a role of "avoiding the cold"? From the "green door" after the eleven long holiday to the whole month before winter, this question really puzzles investors.

In October 10th, the first trading day after eleven long holidays, in the face of two positive data of the number of tourists and sales, textile and clothing, retail and other consumer sectors were the top ones. The valuations of the related stocks moved downward. In October 11th, when the Huijin announced that the four major lines of stock were stimulated, A shares only had a half day tour, and then the oscillation went down, and the textile and garment sector achieved a 14 month low.

However, the industry analysts believe that, after the adjustment of other industries valuation decline faster, textile and clothing plate has a correction of relative valuation risk, but considering the high quality company performance certainty high, the future plate still has a high defensive.

"Rising and falling effect"

Five successive negative plates

Great wisdom trading data show that in October, the textile and garment sector has been falling for two consecutive days, which is truly "open green".

In October 10th, the textile and garment sector index fell 12.88 points to 2909.51 points, or 0.44%, while the Shanghai Composite Index fell 14.43 points to 2344.79 points, or 0.61%.

In October 11th, the A share market appeared an unthinkable trend, which opened sharply in the early morning due to Huijin's holdings of bank shares, but it was only half a day's tour. Then the oscillation went down. The day's market rose 3.73 points to 2348.52 points, or 0.16%, while the textile and garment sector index continued to drop 13.31 points to 2896.20 points, or 0.46%, the same day, the index also hit 2865.45 points, the lowest in nearly 14 months.

According to observation, the textile and garment sector index has been five consecutive Yin, as early as September 28th, 29, 30, the index fell 1.47%, 3.24%, 0.17%.

Some analysts believe that the recent decline in the textile and garment sector is the result of a relatively strong early stage plate.

"In view of the European sovereign debt crisis and the weakening of the US economy, it will take some time to solve the problem. A shares will not be able to reverse in the short term.

Huijin announced that the four major stock holdings had not effectively stimulated the market, which is a good proof.

"The analyst continued to say that" the industry's cumulative stock price rose too high, and the short-term performance was not enough to support the valuation. Combined with the trend of the broader market, the plate had the risk of downshifting in valuation.

In mid July, the textile and garment sector frequently approached the high point of the year. The recent five consecutive Yin is a supplement in technology.

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27 textile stocks go against the market.

Eye catching in cotton printing and dyeing

Although the textile and garment sector opened in October, it was "green", but it was not completely annihilated. There were 27 stocks, which were close to the market, and were close to the total 1/3.

The two types of stocks of printing and dyeing and cotton spinning were most eye-catching in the first two trading days of October.

ST crown A (000018.SZ) has risen 8.32% in nearly two trading days.

In addition, nearly two days, the market went up.

In the cotton spinning industry, 6 companies have gone against the market, of which 600273.SH has risen 9.41% in nearly two trading days, becoming the first strong stock in the cotton spinning industry.

The stock entered the main funds in October to raise funds, and obtained a net inflow of 76 million 555 thousand and 300 yuan and 13 million 987 thousand and 400 yuan respectively.

ST Myers (000971.SZ) and Huamao share (000850.SZ) have also been continuously garrisoned, with a cumulative increase of 2.84% and 1.93% respectively.

Outstanding cotton spinning stocks, 600493.SH and Xinye

Defensive effectiveness

"Cold shelters" are mostly clothing.

The textile and garment sector, especially the clothing sector, is still one of the preferred sectors for weak market investment.

Many brokers agreed to continue the recent investment logic and recommend the brand clothing enterprises that deeply plough the domestic market, have higher brand bargaining power and have less impact on sales.

Haitong Securities and textile and garment industry senior analyst Lu Yuanyuan believes that the textile and garment industry in the second half of the year price factors still exist, the autumn winter clothing profit margins and price increases more than spring summer clothing, the industry is expected to grow in the second half of the year is expected to maintain a good momentum in the first half of this year.

The time window will be the best time for the textile and garment industry to be released from the end of 2011 to the annual report.

At the company level, it is recommended to focus on the listed companies that still have the valuation advantage and future growth.

As the leader of the domestic casual wear industry, 002029.SZ announced that orders for the company will increase in 2011, so the net profit in the first three quarters is expected to increase by 30% to 50% over the same period.

The company is the founder of Fujian casual wear and the "Whampoa military academy" of garment management talents. On the one hand, the future development relies on the expansion of the provincial line in the 3 line cities, and on the other hand, it gradually improves product quality, design and brand image, giving consideration to extension and expansion and endogenous growth.

The stock has risen 0.03% since October, and attracted 577 thousand and 500 yuan and 361 thousand and 500 yuan of net inflow on October 10th and 11 respectively.

While the brand profit margin of 002154.SZ rose, the scale expansion effect was obvious. The company expects net profit in the first three quarters of 2011 to grow by 40%-60% compared with the same period last year.

In October 9th, the wedding bird said that despite the obvious increase in store rentals, the good news birds will maintain and enhance their profit margins. The next 5 years will open a new store with an average annual rate of 15%, and expand business scale.

According to the news bird company, under the situation that the rent cost is rising obviously, the good news bird will insist on the middle and top grade brand line, invest continuously in research and development, respond to the change of consumer demand, strengthen the position of the good bird as the top man's clothing, keep and improve the gross profit margin and enhance the profitability.

The stock has dropped 0.83% since October, and attracted 392 thousand and 400 yuan and 1 million 201 thousand and 800 yuan of net inflow on October 10th and 11 respectively.

As China's first outdoor brand, 300005.SZ expects net profit growth in January 2011 to be 50% to 100% in January 2011.

Since October, the stock market has risen 1.48% against the market, and has been standing steadily on the annual line, but it has a net outflow of millions of yuan of funds.

According to the information of the author, the total retail sales of outdoor products reached 7 billion 130 million yuan in 2010, an increase of 47.01% over 2009. The total retail sales of China's outdoor goods market increased from an average of 47.33% annually from 2000 to 2010.

There will be huge room for growth in China's outdoor products market, and Pathfinder will be the first beneficiary.