Prospects For Recovery Are Promising For Textile And Apparel Stocks

Yesterday (March 5th), red beans, seven wolves, big southeast, Shandong Ruyi, etc. Spin clothing Stocks have been trading, South spinning shares, far east shares rose more than 7%; Phoenix Bamboo textile rose more than 6%.

Put aside the market factors, this is the textile and apparel stocks in recent years, a large number of cases of soaring volume. Behind this, it reflects the prospects for the recovery of textile and garment industry.

Multiple positive factors gather together

According to statistics, affected by the slowdown in economic growth, in 2013, the retail sales of clothing commodities of all the major retail enterprises in the country increased by 5% over the same period last year, and the growth rate was 7.3 percentage points lower than that in 2012. In fact, clothing and textile enterprises have been in the cold winter for several years, but this situation is improving now.

Since February 2014, the RMB has continued to depreciate. Since the Spring Festival, the RMB has depreciated by 0.3% against the US dollar, 1.1% on shore and 1.6% on the spot. The low RMB exchange rate will open a window of growth for the textile enterprises with relatively high export volume, which is embodied in the two indexes of the quantity of the optional order and the quality of the order.

According to the latest data from the General Administration of customs, China exported about 28 billion 617 million US dollars of textile and clothing in January 2014, an increase of 15.9% over the previous year, a record high. Among them, export textiles amounted to 10 billion 537 million US dollars, an increase of 14.78% compared with the same period last year, and export clothing was 18 billion 79 million US dollars, an increase of 16.56% over the same period last year.

At the same time, Xinjiang production and Construction Corps direct subsidy policy or landing will help reduce the cotton price of cotton textile enterprises, and enhance the profit margins of enterprises. At present, the policy of "purchasing and storing and changing subsidies" is estimated to be 380 yuan per mu in Xinjiang.

In addition to benefiting from the improvement of both sides of supply and demand, clothing textile enterprises have changed their own management, property rights structure and business model after experiencing the transition pain. Specifically, the reform of state-owned enterprises, diversification, O2O and other concepts have become the main highlight of the capital of textile and garment enterprises.

Jia Lin Jie

Export accounts for more than 95% of revenue, which is the largest beneficiary of RMB depreciation. 2013 annual report shows that the company achieved sales revenue of 896 million yuan, net profit of 99 million yuan, respectively, an increase of 10.57%, 148.66%. In the trend of gradual improvement of export market, Jialin Jie Hubei Jiayu expansion project will also help foreign trade sales. It is understood that the project is expected to be put into operation in the first phase of November this year.

Keno Technology

One of the best performing textile and garment stocks is not only the backdoor of Yu Hai's home, but also the support of its own performance. In the year of 2013, Hai Lan's family realized a business income of 7 billion 150 million yuan, a net profit of 1 billion 351 million yuan, an increase of 57.89% and 58.19% over the same period, and a net profit of 1 billion 300 million yuan, an increase of 106.73%. This level of performance is the envy of peers.

Shandong Ruyi

A typical representative who benefits from the reform of state-owned enterprises. Qiu Yafu took the place of state assets and became the actual controller of Shandong Ruyi. A brokerage analyst pointed out that "the tide of reform of state-owned enterprises is irresistible. It is foreseeable that the reform of state-owned enterprises in the textile and garment sector will go on like a raging fire. The bonus of a new round of reform will become an important investment thread for the textile and garment sector."

Shanshan stock

Old fashion stocks have been rising in recent years, diversification is the catalyst. Now the transformation of Shanshan stock has been very clear, that is, while the main business is growing steadily, the development of new energy industry is also developing. At present, the company's lithium battery business has been greatly concerned by the market. In the current "Tesla" concept of collective blowout, Shanshan shares have also renewed new vitality.

Smith Barney Clothes & Accessories

Once trapped in high inventories, O2O is now focusing on optimizing its business model. At present, the number of micro members in American Apparel is nearly 1 million. As the first garment company to cooperate with Tencent R & D team in Guangzhou, the company is studying the docking of real-time data research and development, and promotes the supply chain and terminal efficiency through the analysis of big data. The company said it hoped to share information on line and online, and to achieve a unified flow of goods under the online and offline businesses and enhance the efficiency of terminal stores.