Clothing Industry: Slow Growth Has Not Seen A Marked Improvement.

Main points of report

Summary of China Daily & investment suggestion

In the first half of the year, the overall trend was not optimistic. The problems such as increased inventory pressure, rising cost and other problems and profits declined. Due to insufficient demand and high base in the first half of 2011, the performance of the semi annual report slowed down.

From the perspective of the development of the sub sectors, the outdoor industry and high-end brand home textiles still maintain a relatively high growth rate.

Mid end brand

Industry competition is more intense. At present, from the extension expansion to the meticulous management endogenous development stage, the current development is more robust.

Domestic leisure brands are hit at the two ends: the impact of the international fast fashion brand is upwards, and it is affected by the electricity supplier. It is worth noting that the leisure brands rooted in the three or four line cities are gratifying, especially the three or four line economic impact.

Textile manufacturing industry is squeezed by the profits of the upstream and downstream industries, with low profit margins and greater cost.

There is no marked improvement in terminal demand.

We remain cautious in the second half.

We propose to focus on brand retailers with good fundamentals, better annual performance, better growth and low valuation.

Data tracking

Macro data:

An increase of 1.8% over the previous year, the lowest in 30 months.

Among them, clothing prices rose 3.3% over the same period, clothing prices rose 3.6% over the same period last year.

In August, the HSBC manufacturing PMI index was 47.8, down 1.5 percentage points from last month, a 9 month low.

Raw material prices continued to pick up in August, but the growth rate generally slowed down.

Consumption Retail Data: in July, the retail sales of clothing enterprises above the limit reached 46 billion 410 million yuan, an increase of 20.1% over the same period, a decrease of 5.5 percentage points.

Export data: in July, the export volume of China's textiles and garments reached $23 billion 910 million per month, a decrease of 8.2% over the same period last year.

Among them, the growth rate to Hongkong was 3.3%, an increase of 2.1% over the same period last year, and the growth rate of exports to Japan, the United States and the European Union decreased by 6.4%, 21.8% and 53.91% respectively.

Main news

India and other countries have stepped up textile exports, and foreign brands and capital plans have entered the Chinese apparel retail market.

Lifting of non tradable shares in the past year

Last month's market review

In August, the textile and garment industry fell 3.85, while the Shanghai and Shenzhen 300 index fell 5.55 in the same period, and the textile and garment sector won 1.70 percentage points.