Investment Strategy For Textile And Apparel Industry In The Fourth Quarter Of 2012

Textile and apparel industry's investment strategy for textile and apparel industry in the fourth quarter of 2012: return to underestimation

Manufacturing industry in the short term, as the textile manufacturing sub industry's dependence on exports is large, so the development of the industry is mainly determined by the export situation.

In the long run, the rise in manufacturing costs caused by the development of the country is hard to reverse. From the industry as a whole, the decline of the textile industry in the long and medium term will inevitably be inevitable.

Now the main factors that affect China's textile industry are export environment and raw material prices, global consumption has not yet recovered, and domestic and foreign prices of cotton prices have been swallowed up by corporate profits, and the overall situation of the textile industry is not optimistic.

The enterprises that mainly produce high-end textiles still have the possibility of obtaining relatively high profits and expanding production. However, due to the global consumer demand, especially the demand for high-end clothing materials, it will not be very vigorous in the short term. The scale of such enterprises will not grow too fast, so the valuation of the two tier market will not be too high.

Considering the market share, gross profit margin, revenue growth and valuation of products, we recommend Lu Tai A, Huafu color spinning and bar Jie stock.

The growth rate of per capita disposable income in the home textile industry is lower than that of the economic growth rate, which is far lower than the growth rate of the government consumption, and the threat of medical insurance and pension insurance gap. The consumption capacity and consumption intention of the residents are not strong. The growth of clothing consumption has declined over a long period of time. Especially after last year's wide range of price increases and extensive channels to expand the market, the consumption stagnation and high inventory, the growth of the income and profits of the apparel home textile industry has slowed down, and the development of the industry needs to wait for substantive problems to be solved.

Despite the difficulties, the apparel home textile industry still has the opportunity, because the clothing consumption is relatively rigid, and consumers have higher requirements for individuation, so long as the design is proper and managed properly, any brand or company may suddenly rise suddenly.

But even the best industry can not avoid the declining environment of consumption growth, so we should look for companies with lower valuations at this time.

In view of the high inventory and high homogeneity, we recommend companies with unique superior products and emerging industries, and stocks with relatively low P / E ratio, such as seven wolves, nine herd kings and searcht.

The predecessor of seven wolf companies was Jinjiang Heng Long Clothing Co., Ltd., which was established in December 1989 by Jinjiang County People's Government Jin Zheng (89) No. 241st. In June 1993, it was renamed as Fujian seven wolf garment industry Co., Ltd.; in June 2001, the Fujian seven wolf garment industry Co., Ltd. was approved by the Jinjiang foreign economic and Trade Commission (2001) 218, and in July 2001, the Fujian wolf garment industry Co., Ltd. changed to the seven wolves industry Limited by Share Ltd of Fujian in accordance with the law, approved by the people's Government of Fujian province.

Approved by the Securities Regulatory Commission of China, issued by the Securities Commission No. [2004]115,

On July 2004 22, the company publicly issued 25 million shares of RMB common stock (A share) to the public.

Approved by [2004]79 on the Shenzhen stock exchange, it was listed on the Shenzhen stock exchange in August 6, 2004.