Q3 Inventory And Receivables Increase Pessimism In The Textile And Garment Market

Market review last week. Last week, A shares fell, the Shanghai Composite Index fell 2.92%, and the Shanghai and Shenzhen 300 fell 3.63%. Yes Textile and clothing Plate, the overall loss of the overall market, textile and garment sector overall decline of 4.72%, of which apparel home textiles decreased by 5.45%, textile manufacturing fell 3.88%. Most of the companies announce three quarterly reports, while the profit statement basically maintains a high net profit growth. However, the income side, such as the United States and the [17.70 -0.84% share, is not satisfactory in the single quarter; the receivable and inventory in the balance sheet, the operating net cash flow in the cash flow table and other indicators are not satisfactory, the market is more pessimistic about the future, and the share price continues to fall.

Industry key data. The 328 grade cotton spot price averaged 18701 yuan / ton last week, 0.05% higher than the previous week; the international Cotlook A index 83.24 cents / pound, up 0.31%; polyester short 10846 yuan / ton, fell 1.65%; sticky short 14226 yuan / ton, fell 1.41%; 32S all cotton yarn 25618 yuan / ton, slightly dropped 0.01%; CG-C32 gray cloth yuan yuan / meter, slightly increased.

domestic Cotton price Still small, still depends on storage and support. 26 days, the total amount of storage and storage has reached 1 million 544 thousand and 400 tons. Internationally, the international cotton price rose sharply last week due to the market's worry over the quality of the southeastern cotton area in the United States. But last week, the price dropped.

Last week's important announcement and recent follow up. [27.75 0% shares, research report]: performance growth is in line with expectations, and winter stocking has led to a substantial increase in inventories. Another 24 days of research: next year, the channel is still in a period of rapid expansion. Mary Mary will intensify efforts to estimate the opening of about 150 new businesses. The income tax will increase by 2500-3000 million next year due to the expiration of the income tax. Q3 net profit growth is affected by the impairment of assets impairment, and the growth rate is in line with the expectation of asset impairment. The performance is in line with expectations. The assets are responsible and the cash flow chart shows that business is steady; the robust characteristics are more significant in the three quarterly reports; the seven wolves: the performance is in line with the expectation and the cash flow is generally good; searching for the [24.80 0.08% shares, the research report]: the construction of the big store has driven the high performance growth; the Rutai A[6.23 -0.32% shares bar Research Report: Although the capacity is driven but the selling price is sluggish, the profit decline pattern continues; the Bailong East [7.80 0% shares bar Research Report]: the futures loss, the low price of the product, the low price of the product, and the high cost of the cotton use lead to the decline of the net profit [14.30 [14.30. King of nine

We maintain the industry's "prudent recommendation" rating. Three the general phenomenon of quarterly reports is the increase in inventory and accounts receivable. In the three quarterly report, this phenomenon is essentially a result of poor retail sales. In the case of listed companies that are mainly franchising, the decrease in dealer sales leads to insufficient funds and motivation. For the listed companies, the accounts receivable (which are relatively good) or the increase in the company's inventory is due to the initial delivery of goods to the listed companies. The improvement of annual report data still depends on whether terminal retail can turn better.

Last week, we split the performance of the portfolio, the relatively recommended varieties in the short term - [39.11 0.67% shares of research, [10.51, 0.10% shares, research report, AOKANG international [21.72 -1.45% share research report]. Lancy The seven wolves belong to a relatively long line. The news birds will reduce the scale of financing, and will strive to complete public growth in the near future. The valuation is at the bottom of history. AOKANG has low valuation and rapid expansion in 12 years, and its performance has been determined. The investment logic of both LAN Zi and Carlo NDI road is the same, and both revenue growth and profit growth are in line with expectations. The annual profit forecast has not been adjusted. After the completion of the seven wolves, combined with the order meeting, cost control, interest income, the 13 year growth rate is most determined.