Special Topics On Reform Of State-Owned Enterprises In Textile And Garment Industry

　 Investment suggestion

Affected by the macroeconomic downturn, the improvement of industry fundamentals and the deepening of government anti-corruption efforts. Spin clothing The industry will be difficult to pick up in 2014. It is expected that the industry's annual growth rate will remain at a low double-digit level. The "transformation + reform" type of companies will be an ideal investment target this year. The reform of state-owned enterprises, which is advancing in full swing, will improve the institutional and institutional constraints to a certain extent. In the short term, it will help to improve the profitability of state-owned assets, which is conducive to merger, integration and transformation in the medium and long term. The textile and garment industry is a competitive industry. It will first benefit from the improvement of the efficiency and valuation level brought about by the reform of state-owned enterprises. We will mainly recommend Shenda shares and leading shares.

　 Main points

A runaway horse can be a thousand li: in the context of China's economic slowdown, the necessity of strategic transformation has become a consensus. Revitalize the stock economy is an important way to improve the efficiency of production factors and sustainable development. Assets Operational efficiency bears the brunt. It is imperative to reform state-owned enterprises to overcome institutional constraints and enhance operational efficiency. The reform of state-owned enterprises is to remove the reins of state-owned enterprises and make them become real ones.

Looking at the economy, competitive enterprises first benefit: textile and clothing as a typical competitive industry, the degree of marketization of the industry is much higher than the overall market, a large number of high-quality private enterprises continue to promote the industry's innovation and development, and the state-owned enterprises in the industry have an open mind and a high willingness to reform. Before the textile and garment industry started the reform of state-owned enterprises, the resistance is relatively small. With a large number of private listed companies as a reference, the success rate of SOE reform is relatively high. We judge that textile and clothing will become the first benefited sectors under the reform of state-owned enterprises.

The layout of the whole country, Shanghai first: from the perspective of the policy landing speed, Shanghai has undoubtedly become the forerunner of the current round of state-owned enterprise reform. The Shanghai municipal government issued the "20 reform of state owned assets in Shanghai" in December last year, and promoted the landing of relevant policies, and put forward specific measures such as classified management, strengthening incentives and so on. Judging from the degree of marketization and the degree of economic openness, Shanghai also has a high degree of marketization and an open mind, which provides a good soil for the smooth progress of SOE reform, and is conducive to reducing the resistance to policy implementation.

The textile industry reform target, the first Shen Da, leading: the two controlling shareholders are Shanghai textile (Group) Limited company, the actual controller is the Shanghai SASAC. Shenda's main business is engaged in import and export trade, automotive interior decoration and new materials; leading shares own rich brand resources, three guns, civilian light and other long established brands. At present, the basic performance of Shenda shares is superior to that of the leading shares. Will the SASAC take the Shenda shares with better performance as the Shanghai state assets textile assets integration platform and treat the leading shares of poor performance as shell resources? Of course, this is only our guess. Let's wait and see.

Risk warning: State-owned enterprise The time, intensity and progress of the reform policy are difficult to grasp; the growth of company performance is general; the future asset integration is hard to predict.