Economic Slowdown, Brand Clothing Continues To Grow Steadily

In the first and second half of the year, the trend of RMB appreciation and industrial income growth continued to slow down, while the industrial value and industrial growth continued to decline. In the first quarter, April, may, first half, July and August of 2008, the industrial added value of the textile industry increased by 12.7%, 12.2%, 12.1%, 12.7%, 10% and 8.9% respectively, continuing the downward trend. Domestic sales outlook: the brand clothing will continue to grow, and the per capita clothing consumption of residents will grow steadily. Urbanization will lay a foundation for the continued growth of domestic brand clothing. From January to June 2008, the per capita clothing consumption expenditure of urban and rural residents in China was 623 yuan and 115 yuan, respectively, with a year-on-year increase of 9.17% and 8.31%. In the first half of 2008, China's clothing consumption market was 455.2 billion yuan, with a year-on-year growth of 10.5%. According to the national retail sales data of large shopping malls, the retail sales of clothing increased by 11.89% from January to June 2008, and the retail sales increased by 20.91% year-on-year, and the volume and price continued to grow steadily and rapidly. Even if the export volume gradually slows down, the export pressure will slow down in 2009. from January to August 2008, the cumulative export of textile and clothing was 118.94 billion US dollars, a year-on-year increase of 9.1%, and the growth rate was 10.1 points lower than that of the same period last year. From January to July of 2008, the import volume of US textile and clothing from the world decreased by 5.05% year on year, and the amount decreased by 3.02% year on year. In the first seven months of 2008, China, Mexico, India and Vietnam accounted for 32.5%, 5.6%, 5.9% and 5.7% of global textile and apparel imports from the United States, respectively. The economic recession in Europe and the United States will reduce the growth rate of export volume and increase the pressure of product price rise. The annual export value in RMB will show negative growth. The situation will be more severe in 2009. The determined negative growth and uncertain growth rate will fall back. Investment strategy: the continuous recession of European and American economy and the establishment of appreciation trend of standard domestic brand clothing companies will make the growth of export companies overshadowed Shadow, relying on exports to enhance the company's value expectations gradually reduced. The domestic clothing industry can still maintain a growth rate of more than 10%, the sales revenue of brand clothing companies will maintain faster than the industry growth rate, and the net profit growth rate of 10% - 15% can still be maintained in the economic downturn cycle. It is suggested that domestic brand clothing companies such as Meibang clothing, baoxinniao and qipilang can be equipped as standard.