Men's Clothing In Textile And Garment Industry Is Steady And Overall Is Slightly Lower Than Expected.

In the two quarter of 2012, the sales of clothing terminals improved slightly compared with the first quarter. We expect to track in the first half of 2012. Textile and clothing The company's revenue and net profit growth are generally lower than expected. In the molecular industry, the growth of men's clothing companies is still the most stable. Home textile companies did not improve significantly due to the terminal demand, and the income was not up to expectations, resulting in a high cost rate and lower than expected performance. Casual wear companies are facing double extrusion from international brands and e-commerce brands, and there is pressure on channel memory and performance is lower than expected, but locating low level market is better. Textile manufacturing companies, which are low in demand and low in raw material prices, will not lead to order prices, coupled with a high base in the first half of last year.

It is predicted that the net profit of the newspaper will grow faster, and the growth rate of more than 30% companies will be: the card slave Road (47%), the Pathfinder (41%, the tax rate adjustment, and the two quarter sales are not ideal, the cost will rise). Lancy (41%) seven wolves (40%), good bird (40%), search at (40%), nine Mu Wang (30%).

The company expects to grow between 10%~30%: fuanna (23%) and American bond (13%).

It is estimated that the companies with 0%~10% growth rate are: Meng Jie home textile (7%), YOUNGOR (6%), property settlement progress is lower than expected, and the north area contracting group buying business affects the growth of clothing sector, on Saturday (0%).

Expected growth rate of less than 0% of the company has: Semir clothing (-40%, negative revenue growth, more inventory, price increases, business costs rise), Lu Tai A (-29%, orders prices fell), home textiles (-19%), the growth rate of revenue is not as expected, high speed extension and expansion and personnel reserves lead to higher cost, government subsidies less than the same period last year.

　　 Trend Outlook

In the second half of the year, the growth rate of outdoor Pathfinder is still ahead. In the second half of this year, we will increase sales promotion efforts to solve the problem of the two quarter sales outfall. Menswear growth is relatively stable, but due to the slightly higher inventory in the autumn and winter last year, the growth rate in the second half of this year may be slightly slower than in the first half. The performance differentiation of home textiles and casual wear for young people is still great. The growth rate of the year-on-year growth rate has obviously rebounded until the fourth quarter. Textile manufacturing sector, global cotton is still oversupply, through the promotion of cotton prices to stimulate the possibility of product price increases, the industry inflection point postponed, need to continue to improve downstream and overseas demand.

In the long run, the high price of domestic clothing affects the growth of sales volume and increases the fluctuation of the industry. The high rate of increase is largely due to the low efficiency of the channel, including the many agency links, high market points, low inventory turnover and high taxes and fees. With the concept of domestic consumption becoming more mature and rational, online shopping is developing rapidly, and international brand channels sink and reduce channel links. Clothing market The average markup rate has a downward pressure, forcing domestic brands to enhance channel efficiency.

　　 Investment suggestion

Recommended seven wolves and nine herd kings, the growth rate of China News performance is relatively high, and the turnover rate of inventory and accounts receivable has not significantly deteriorated, and the operating cash flow is stable. The increase rate is more reasonable than the brand positioning and market position. The Pathfinder industry is still growing rapidly, and the expansion of Pathfinder in the next two or three years will help to further enhance market share.