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    Terminal Consumption Of Textile And Garment Industry Slipped Beyond Expectations

    2011/12/15 14:47:00 16

    Terminal consumption slipped early, brand

    clothing

    The company has high operational risk and is worth cautious.

    We believe that in the next half year, the macro economic background is not good. Brand clothing is a highly selective consumer product, and its terminal sales elasticity is relatively large. Therefore, it is expected that the growth of brand clothing terminal consumption will be more obvious in the future.

    From the recent industry and company data, the terminal downward trend has taken shape and is expected to decline further in the next half year.

    At present, the operation risk of listed companies is generally larger. Accounts receivable, inventory and other aspects have significantly deteriorated compared with the same period last year. There are more channel stocks, and orders will increase generally in the early summer of 2012. Therefore, the inventory of franchisees in the next half year will be further increased, and the higher operational risk will enlarge the impact of terminal consumption decline in the future.


    The three logic filters the investment target in bear market.

    We believe that companies with higher growth expectations next year will have relatively high space for future valuation handover, and companies with relatively small operating risks will resist.

    system

    The ability of sexual risk is strong, and the market with relatively weak elasticity is relatively small.

    Based on the above logic, we are relatively optimistic about locating in the three or four consumer area with relatively weak consumption elasticity and strong competitiveness. At the same time, we hope that the brand image will be improved, and both internal and external will accelerate.

    Grow up

    Of the city.


    Textile and garment manufacturing industry is turning out and will be difficult to invest in the future.

    With the rapid increase of labor force in recent years and the appreciation of RMB exchange rate, the cost advantage of textile and garment industry in export has disappeared.

    Since the beginning of this year, the major textile and garment importing countries such as the United States and Japan have begun to reduce the share of imports from China, which means that the trend of textile and garment manufacturing industry has gradually shifted out and has been established. It is expected that in the long run, there will be no industrial investment opportunities.


    The textile manufacturing companies with strong technical superiority and small scale are worth our attention.

    From the perspective of the current policy orientation of textile and clothing industry, technological innovation, energy conservation and environmental protection are the main themes.

    From the experience of textile manufacturing industry in Europe, all those who survive are those with strong technological superiority and relatively small scale.

    According to our research, the difficulties of textile and garment manufacturing industry are mainly from the resource gap of technology and influence. We think that breaking through the gap of technological resources is more feasible for manufacturing enterprises than two.

    Based on the above point of view, we believe that Shandong's strong technology "moat" Ruyi, Weixing shares and Xun Xing shares are worth our attention.


    Risk warning: terminal consumption fell more than expected; external demand slipped beyond expectations.

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