Concerned About The Healthy Growth Of The Textile And Apparel Industry'S Earnings Report, Steady Business Waiting For The Industry To Rebound.

A week's main review: 1, industry tracking: (1) in August, the total volume of business increased by 13.2%, and the growth rate of textile and clothing grew by 21.1%, up 2.7 percentage points from the previous month.

Review of China Daily Performance: Textile

The growth rate of earnings and performance in the newspaper continued to slow down, and the overall performance was slightly lower than expected.

The performance of various sub sectors has been divided, and some enterprises' earnings have deteriorated: Men's wear is growing healthier, the overall financial situation is relatively healthy, performance is in line with or slightly exceeding expectations, net profit growth of high-end women's clothing has slowed down compared with the first quarter, but is still growing at a relatively high level, and the performance is consistent with expectations. The demand for domestic textile industry's terminal demand has slowed down, but the channel inventory has been gradually digested in the near future. The shipping rate has been recovered in 7 and August, and the performance of casual wear enterprises is in line with or below expectations; the export manufacturing enterprises are generally lower than expected, and both income and net profit are negative growth.

3. On September, 4-5, the SW Securities Institute held 2012 consumer products industry seminar and a public company exchange meeting in Shanghai.

Our textile and Garment Group invited Lu Zhenwang, an e-commerce strategy expert, as well as senior executives from Luo Lai home textile, Mei Bang dress and Semir fashion company to exchange with investors.

2, company tracking: (1) Luo Lai home textile tracking: the company has implemented multi brand strategy since 2004, and now has established a matrix management mode consisting of nearly 20 brands, such as Luo Lai, Sheraton, Disney, and Shang ma ke.

In 2011, the total sales revenue of the company was 2 billion 380 million yuan, of which the main brand of Luo Lai was about 1 billion 800 million.

At present, the more successful mode of opening a store includes 4 modes: single brand opening shop, single brand opening shop, multi brand open shop, multi brand open shop and so on.

Mei Bang clothing tracking: at present, women's clothing accounts for about 40-45%, Tagline has certain development prospects; MC operation team is more stable, product positioning is clear, focusing on business fashion.

In the second half of the year, the company is expected to control the volume of production, appropriately reduce the volume of futures, and increase the volume of monthly supplement.

The basic work includes: upgrading of store image, improvement of franchisee's operation, standardization of stores such as props and display, short selling of goods, improvement of proportion of supply chain in late stage, and integration of suppliers.

After the gradual recovery of terminal demand, the effectiveness of basic work is relatively obvious.

Semir's clothing tracking: the decline of the performance of China Daily is mainly due to the fact that the flat effect of extensive growth mode has not kept pace, and that Future Ltd should pform from extensive management to meticulous management.

At present, the flat effect is about 15 thousand, and the famous brands in the first tier cities are about 3-4. Therefore, there is still much room for growth in terms of efficiency. Future efforts will also focus on improving sales capabilities, product capabilities and supply chain capabilities.

Last week

The trend of clothing sector is slightly weaker than that of the market.

Textile and apparel index rose 4.84% last week, down 0.73% from the Shen Wan A index.

Among them, the textile manufacturing index rose 5.24%, relative to Shen Wan A index fell 0.33%; clothing home textile index rose 4.53%, relative to Shen Wan A index fell 1.05%.

Industry basic data: (1) the total volume of 1-8 months increased by 14.1% year-on-year, of which the textile and garment industry increased by 17.5%.

2. CPI rose 2% in August.

Among them, cities rose by 2.1%, rural areas rose 1.8%, food prices rose by 3.4%, and non food prices rose by 1.4%.

Last week, the price of cotton and chemical fiber mixed with each other: domestic 328 spot spot edged up 0.6% last week to close at 18631 yuan / ton, Zheng cotton main contract rose 0.4%, reported 19595 yuan / ton.

Polyester staple fiber rose 0.2% to 10720 yuan / ton, viscose staple fiber fell 1.3% to 15500 yuan / ton, nylon sliced flat 20300 yuan / ton.

Our view: pay attention to healthy earnings, healthy growth and low valuation of the company, waiting for the industry boom.

Recently, the textile and garment sector valuation has undergone a larger adjustment, including a more pessimistic forecast for the growth rate of orders, but at the same time, the safety margin of the industry has been gradually strengthened.

Short term valuations need to be catalyzed by events and closely follow the final outcome of the order; long-term leading white horse has the opportunity to invest in value and wait for the industry to rebound.

Recommend high quality men's clothing leading seven wolves, nine Mu Wang, good news birds, and potential growth stocks Shanghai Jahwa and long Zi shares.

At present, the wedding bird is at the bottom of valuation.

Still in the development stage of the life cycle of the industry, the long-term prospects are promising. The home textile share price of Luo Lai has a larger pullback rate, giving better opportunities to intervene, and recommending appropriate attention.