Exports Of Textile And Clothing Industry Remained Weak In June.

Review of plate performance. The Shanghai Stock Exchange Composite Index rose and rebounded on the A stock market, while the weekly total rose 1.61%, while the spinning and weaving sector increased by 0.24%, with manufacturing up 0.51%. clothing Home textiles fell 0.06%, significantly weaker than the market. The three companies led by the plate were Meng Jie. Home textiles Busen shares and jfeida have led the top three companies, Thailand, shares, and technology. Hong Kong stocks, led by Daphne (China daily performance is expected to fall), nine Hing Holdings (2013Q2 performance decline significantly), Tai Fung bed products; led to Anta sports, Lufu group, Changxin international.

Industry important data: (1) 328 level Cotton spot Weekly average price 19274 yuan / ton (-0.06%); international Cotlook A 92.84 cents / pound (+0.48%); inside and outside cotton price difference 3396 yuan / ton (-2.08%); polyester short 9990 yuan / ton (+0); sticky short 13400 yuan / ton (+0.22%); KC32S pure cotton yarn: 26269 yuan / ton (-0.04%). As of July 12th, total reserves of 2 million 866 thousand and 100 tons were accumulated. In the short term, domestic cotton prices will remain weak in the short term under the Chinese government's planned regulation. The international cotton price will be suppressed because of USDA's increase in global output and end inventory, and it will not increase significantly in the short term. (2) exports: the export volume of textile products increased by 5.25% in the month of June, and the trend of weak recovery continued. (3) domestic sales: 50 large retail enterprises Apparel Retailing The volume increased by 11.1% in June compared with the same period last year.

A, H shares and overseas important announcements and important news. (1) Huafu color spinning: the growth rate of China Daily's performance has been raised to 100-130%, as sales volume has increased by 20%+, and the cost has gradually declined. (2) Pathfinder: net profit increased by 63% in the interim report. The main reason was 15% tax rate, which was 25% in the same period last year. (3) Changshan shares: China Daily net profit loss of 34 million yuan -3600 million yuan. (4) investor relations announcement: Weixing shares were operating normally in the first half of the year, and orders slightly improved, but not obvious. At present, the net profit is still between -15% and 15%. (5) 1000 2013H1: shareholders' share of profits is expected to decline by 10%-15%. (6) Daphne: 2013H1 is down 9.2% in the same store, and the performance of mid - market is expected to drop. (7) nine Hing Holdings: 2013Q2 revenue fell 1.2%. (8) Sasa International: 2013, the first quarter, the turnover increased by 20.1%.

(9) BELLE International: 2013Q2 has a slight increase in the same store. shoes Increase by 0.5%, exercise Clothes & Accessories Increase by 2.5%). (10) mutual Spin In the 2013 fiscal year, revenue increased by 3.6%, sales increased by 11.3%, and shareholders' net profit increased by 3.59%.

Maintain a neutral rating. For the brand clothing, both the terminal demand and the Q2 performance report show that the fundamentals of the industry are not good enough. We also hold a conservative attitude towards the upcoming spring and summer order growth in September. In the general direction, we still believe that the industry lacks a catalyst for the upgrading of the industry. "We have no doubt that the industry will not be a catalyst," she said. But the key is that some stocks that have been adjusted and whose performance has already considered the economic impact has been lowered to a low level. We believe that the degree of concern should be improved. For production enterprises, from the view of orders and raw material prices, Q3 performance is not a big problem, and there is no bad short-term fundamentals. It is still necessary to observe whether 2013Q4 and 2014 can continue to improve.

From the perspective of the recommended target, considering the whole second half of the year, the first choice of the industry is Lu Tai A (industry leader, undervalued value), Semir clothing (to the end of inventory, GXG disagreement), followed by Rand's share (growth, undervaluation), Huafu color spinning, fuanna (stable performance, low storage pressure, undervalued), and Laurie home textiles (less stock pressure, undervalued under strict control costs). The Pathfinder and search in the good China Daily do not rule out short-term performance beyond the recommended targets in the second half of the year.