Domestic Textile And Garment Industry Continued To Pick Up In April

Weekly market review and views

This week, the Shanghai Composite Index, Shenzhen stock index and Shanghai and Shenzhen 300 fell 2.33%, 3.43% and 2.91% respectively.

Everbright textile and garment sector fell 1.65%, of which the textile and clothing sectors fell by 1.33% and 1.90% respectively.

Domestic sales: Statistics released by the National Bureau of statistics show that in April, the total retail sales of consumer goods above the limit increased by 14.1% compared with the same period last year.

The retail sales of knitwear increased by 19.5% compared with the same period last year, and the growth rate was 0.1 percentage points higher than that in March.

According to the data released by the national business confidence center of China, 50 key large enterprises showed that the growth rate of garment retail sales in April increased by 9.7 percentage points to 16.48% compared with March, and the rebound trend was obvious. The retail sales volume increased by 12.74% over the same period last year, not only significantly higher than that in March, but also 0.7 percentage points higher than that in the same period of 10 years.

We believe that the rebound in domestic sales growth in April, especially the sharp rise in retail sales, mainly benefited from the Qingming, May 1 holiday effect and seasonal promotions. It is estimated that the growth of retail sales over the quota in May is expected to maintain the April level.

We remain relatively optimistic about domestic sales. With the promotion of holiday effect and discount sales, the sharp rise in retail sales shows that domestic demand is still in force, which is consistent with our previous judgment that "the worst moments of brand clothing are basically the past, and terminal sales are better than month to month".

Considering the modest increase in clothing prices in the second half of the year (the average increase in prices of the main and listed companies in autumn and winter is about 5%), the growth of retail sales will mainly come from the contribution of self weight. It is estimated that domestic sales will increase by about 20% year-on-year.

Export: according to the data released by the General Administration of customs, China's exports increased by 6.9% over the same period in 1-4 months, of which the export of textiles and clothing increased by 0.48% (-0.25%, 1.02%) in the same period of April.

Clothing exports decreased by 5.4% (Textiles -4.1%, clothing -6.4%), a negative growth again; the 111st Canton Fair textile and garment exhibition hall exports (closing 5.4) turnover volume of 2 billion 290 million US dollars, increased by 0.3%, down 12.3% compared with the same period last year, of which the European and American markets continued to be weak, and orders were short (86.3%) and small characteristics; emerging market orders grew faster.

We believe that the single month exports in April and the Canton Fair's orders are all negative growth, indicating that the progress of economic recovery in Europe and the United States is still uncertain. The short and small characteristics of the orders mean that most European and American enterprises are cautious and wait-and-see about the economic recovery. It is estimated that the export situation in the two quarter is still not optimistic.

News of industry companies:

(1) the export volume of the 111st Canton Fair dropped by nearly 5%, and the export of textile and clothing decreased by 12.3% compared with the same period last year. (2) the home textile enterprises expanded their online business opportunities, and red Fuji entered into e-commerce in an all-round way; (3)

(5) the US sales increased by 95.7% compared with the same period last year; (6) the sales of major apparel retailers in the United States in April were worse than expected; (6) the YGM trade purchased the British fashion brand, the gatesdan, with 15 million pounds; (7) the initial application of the "bird and bird" shares was not passed; (8) the market participants said that the import quota of 1 million tons of cotton had been issued, and that the Chinese enterprises were divided into 780 thousand tons. (780 thousand) in the first quarter, the same store sales resumed a positive growth, and the first quarter of the global shops increased; (ZARA3800) the largest store in China was stationed in Yichang to speed up the sinking of the channel; (Lu) Lu Tai A planned to buy back B shares and continued to suspend the business; announced the termination of children's clothing business, business time is only one year; (4) 1-4 months, China's total imports of cotton 2 million 77 thousand and 400 tons

Industry data summary:

Raw materials: grade 328 cotton spot: 19294 yuan / ton (-0.18%); American cotton CotlookA:93.35 cents / pound (-4.70%); viscose staple fiber: 16250 yuan / ton (0%); polyester staple fiber: 11100 yuan / ton (-0.63%).