Textile And Garment Industry: Consumption Promotion Month Start Policy Catalyst

Industry strategy: at present, the mainstream stocks in the industry are relatively reasonable in 2012. With the April order meeting, the April promotion month and quarterly disclosure, the risk factors of stock price suppression are expected to become clearer.

Some high quality brands will be the biggest catalytic factor.

Recommended stocks in April: brand The clothing sector, the sub sectors we recommend are men's wear and high-end women's wear.

The promising companies are seven wolves, calandy Road, good bird, and Lange, and we recommend Hua Fu color spinning and Lu Tai A.

Stock price performance

This week, the Shanghai Composite Index rose 1.93%, and the textile and garment sector rose by 3%, of which the textile sector rose 3.45% and the clothing sector rose 2.65%. This week, the textile and garment sector overall outperformed the 1.07 percentage points in the market.

This week, the leading companies in the sector are: Hong Kong shares, open industries, Pathfinder The increase was 9.90%, 9.67% and 9.05% respectively. We focused on the company Pathfinder, Rebecca, fuanna, Semir costumes, nine Mu Wang, search special, cashmere industry, etc., and gained over 9.05% of the plate, 4.28%, 4.19%, 4.15%, 4.10%, 4.01%, 3.87% respectively.

　 Raw material price

Domestic cotton spot prices continued to fall: this week cotton price 328 index weekly average price of 19454 yuan / ton, Zhou Chengjiao average price fell slightly 0.26%, in April 6th, the transaction price was 19446 yuan / ton. Outside cotton Cotlook:A index this week week transaction price slightly increased 0.31%. The temporary cotton purchase and storage in 2011 ended. In 2011, cotton temporary storage and storage totaled 3 million 130 thousand tons. The total turnover in Xinjiang was about 1 million 700 thousand tons, and the total turnover in the mainland was about 1 million 420 thousand tons.

Cotton yarn price is maintained at around 31100 yuan: this week pure cotton yarn 40S index The average price of the transaction was 31100 yuan / ton, and the difference between 40S yarn and 328 price was 11646.25 yuan / ton this week, which was 49.55 yuan / ton lower than last week. This week, the price of chemical fiber products week fell to varying degrees, of which polyester staple fiber, polyester POY, viscose staple fiber and human cotton yarn 30S were up by -0.45%, -0.44%, 0% and -0.25% respectively.

Risk warning

The economic recovery in Europe and the United States has repeatedly affected export demand; consumer confidence has fallen far beyond expectations, and the risk of terminal inventory has increased.