The Quarterly Performance Of The Textile Industry Is Generally Lower Than Expected.

Up to now, most textile and apparel listed companies achievement It has been disclosed. The overall performance is slightly lower than expected for the key companies in the industry that have already released their performance. Specifically from the sub sectors, outdoors, women's wear and some brand men's clothing companies outperformed expectations, men's clothing companies overall performance in line with expectations; casual wear and home textiles growth slowed down performance is lower than expected. In addition, orders for export manufacturing companies are still poor in the first quarter, although they have improved compared with the fourth quarter of last year, but the quarterly net profit growth has dropped sharply compared with the same period last year, and the performance is lower than expected.

We believe that there are four main factors that result in the differentiation of sub sectors in the current quarterly report:

First, the different stages of the development of each sub industry's life cycle determine the external environment of the company's development. For outdoor and high-end clothing, it is still in the initial stage and growth stage of the industry, the competition pressure in the industry is relatively small, the scale of revenue is growing rapidly, coupled with the company's own level of cost control, accurate brand layout, planning ideas and sound channel development capabilities, it is also the support for the company's performance in the high-speed expansion.

Second, the spanformation from wholesaler to retailer. Through the study of the existing Brand Company's management mode and development history, we think that the final winners will be those who focus on increasing the added value of the brand and the premium capability to do retail business instead of the Brand Company that simply runs through the competition to reduce the price.

　　 Third, the level of inventory in various sub sectors is also one of the main factors that affect current performance and determine future growth. We think that the channel is high. Stock It is the overdraft of the future distribution capacity of the channel, which directly led to the lower quarterly performance of the home textile companies, and also resulted in the company's being in the process of digestion channel inventory in 2012. In line with home textiles, the overall distribution level of men's clothing industry is stable and healthy, with an average annual growth rate of 20% to 30%. channel Inventory has always been maintained in a healthy and sustainable development trend.

Finally, in the first quarter of this year, cloudy rainy days were too much, the new year was earlier, and the overall economic environment was weak, which indirectly affected terminal retail, thereby affecting the company's performance in the first quarter.

As for the future investment strategy, the terminal sales in March showed signs of recovery. We expect that the trend of recovery of clothing consumption will continue in the future under the promotion of factors such as consumption promotion month. At present, the valuation of the industry is at a historical low. With the resurgence of terminal sales, the investment value of garment enterprises will gradually appear in the future. In terms of molecular industry, men's clothing is still the most robust growth of performance. At present, the order will grow at a high speed and the annual performance can be expected.