Clothing Industry: Short Term Correction Relative Valuation Does Not Affect Future Defensive

Two level market "

In October 10th, the first trading day after the eleven long vacation, 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, while the valuation of the related stocks moved downward; in October 11th, four gold companies were announced to increase their holdings.

However, industry analysts believe that other adjustments have been made.

"Ups and down" effect plate recently five consecutive Yin

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 went against the market to catch up with 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 has risen 8.32% in nearly two trading days, becoming the first strong stock in printing and dyeing industry.

According to observation, the stock began to rise in August 10th, and as of October 11th, it rose 32.32% in 39 trading days.

It is noteworthy that the company is a traditional printing and dyeing enterprise, but it has already faced the situation of hollowing its main business.

Due to changes in the cause and Industry Outlook of the Nanjing plant, the joint venture project has not yet been completed. The company's printing and dyeing business has not shown signs of improvement in the short term.

The company expects that the cumulative net profit from January to September will be a loss of about -1500 to -1200 million.

In addition, there were four printing and dyeing enterprises that had risen against the market in the past two days, namely, Zhonghe shares, Mei Xinda, hang min shares, and China Textile shares, which rose by 1.36%, 1.13%, 1.08% and 0.21% respectively.

In the cotton textile industry, 6 companies have gone against the market. Among them, Huafang textile has risen 9.41% in nearly two trading days, becoming the first strong stock in 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 Maya and Huamao shares were also continuously garrisoned, with a cumulative increase of 2.84% and 1.93% respectively.

Outstanding cotton textile stocks, and Feng Bamboo textile, Xinye textile, etc., nearly two days, respectively, the market rose 5.87%, 0.25%.

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Defensive and effective "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, the seven wolves announced that the order of 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.

With the increase of gross profit margin, the scale expansion effect is obvious. The company expects net profit in the first three quarters of 2011 to grow by 40%-60% over 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, Pathfinder expects net profit growth of -9 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.