Analysis Of Investment Strategy In Textile And Garment Industry

Market review in July

July Spin The clothing industry was lower than expected by the announcement of the performance of the newspaper, the overall performance was significantly weaker than the market, the Shanghai Composite Index fell 5.19%, Shenzhen composite index fell 4.52%, Shanghai and Shenzhen 300 fell 5.11%, and shwan textile and clothing index fell 7.62%. Among them, the textile manufacturing sector dropped by 10.13%, and the apparel home textile sector dropped by 5.66%. The biggest companies in the world were the leading industries, leading shares, public shares, Pathfinder, and search companies. The top companies were Thailand shares, Vico essence, 100 yuan trousers industry, Shenzhen textile A, and dream home textiles. From the relative valuation of the sub block, the textile manufacturing sector was valued 0.91 times in 2011, far less than 1.18 times the historical average; the relative value of apparel textile in 2011 was 1.12 times higher than that of the historical average 0.92 times.

　　 Key data tracking

1) in the first half of the year, the sales growth rate of hundreds of large retail enterprises in China dropped sharply; 2) the gap between the sales volume of clothing sales of the major large retail enterprises in the country in the first half of 2012 was significantly lower than that of the beginning of last year; 3) the sales situation of 50 large retail enterprises in June was better than that of the previous period, and the July survey was reviewed.

1) good news birds (300005): 5, June, terminal sales resumed 20%-30%, small non reduction July ended, stock price suppression factor reduced 2) AOKANG International (603001): channel and brand's first mover advantage to build enterprise moat, gross profit margin in the next few years is rising channel August investment strategy

Textile manufacturing: export demand has been sluggish. The scissors gap between domestic and foreign cotton prices has narrowed but is still high. Textile manufacturers' performance in the first half of the year is generally not ideal. It is recommended to prevent textile manufacturing enterprises from reporting landmines and maintain the "neutral" rating of the plate. Clothing home textiles: the plate was restricted by the short term effects of the weather factors in the first half of last year and the high base last year, and the performance of listed companies was generally lower than expected. corporate performance Rather than ideal, we propose to guard against the risk of "Davies double kill" which was lower than expected in August. However, in the process of macroeconomic downturn, the consumer industry has a certain resilience in the horizontal industry comparison. We believe that in this year's gloomy market environment, the leading brand clothing enterprises with outstanding performance have excellent investment value, and we should pay close attention to the leading companies in the sub industries, which are determined by the growth rate, and maintain the "recommended" rating of clothing textile.

As the consumer market is getting warmer, we are still optimistic about the brand clothing enterprises that are relatively robust and risk resistant. According to the industry, it is expected that the growth of men's wear will be more determined, and the performance of the industry can be guaranteed. The outdoor industry is in a period of rapid expansion, and the leading companies are expected to get the acceleration of exceeding the industry's growth rate. The home textile industry has a smaller base in the second half of the year, and the three quarter reports or annual reports are expected to be flexible. Recommended company: Nine herd king. Seven wolves Pathfinder, AOKANG international, good news bird, and fuanna.