Shen Wan: Direct Subsidy Policy Is Good For Cotton Spinning Enterprises

Industry and company tracking: 1. Keno Technology Tracking: last week, we released "two of Keno technology deep report series": 1) raised 14-16EPS to 0.49/0.60/0.71 (original forecast 14-15 years 0.44/0.53 yuan), corresponding to PE is 18.3/15.1/12.7 times, up to buy, target price 14.7 yuan. 2) re emphasize that the existing business model of "upstream credit sale + downstream financial Affiliate" has a large-scale entry barrier. At this stage, there is no rival in the mens market.

2. Shanghai Jahwa tracking: 1) last week, a company convened a general meeting of shareholders, chairman Xie Wenjian, general manager Wang Zhuo, Ping An Trust chairman Tong Kai attended the shareholders' meeting. The meeting passed a motion on the election of sole directors, acting chairman allowance and chairman's remuneration. 2) since last year, top executives at the company level have not left, and the company team has remained stable. Wang Zhuo said he was very fond of domestication and would not leave in the future. 2) Tong Kai said that he hoped that the investment in Jahwa would be long-term. Xie Zong is very optimistic about the future of Jahwa and is confident.

3. Luo Lai home textile tracking: 1) the company's order in October last year has been revised, the first quarter results are expected to be positive; 2) in March this year, the company will carry out a big push, is expected to significantly pull up performance improvement; 3) the company's stock price is still at the bottom, it is worth investing.

4., Chase's share tracking: the shares of Hua Si have been targeted to 20 million 530 thousand additional shares of six objects. The issue price is 14.6 yuan / share. The distribution organization has Shanghai textile information management, Xinjiang Ding bang, Taikang information management, Huaan fund, Pacific Information Management and Noah fund.

5. public and share tracking: public and subsidiary companies Zhonghe new energy intends to acquire 100% equity interest in ViewSonic energy in cash.

6. Hua Fu color textile tracking: Hua Fu color spinning has been suspended since March 5th because of the planned equity incentive, and no later than March 11th. 7. Lu Tai tracking: VP fund this purchase of B100 shares, the shareholding ratio increased from 4.9% to 5%, the next December will continue to increase the intention.

Last week Textile and garment sector The performance is stronger than the market: last week, the textile and clothing index rose 2.77%, and increased 2.14% compared with the Shen Wan A index. Among them, the textile manufacturing index rose 2.79%, relative to Shen Wan A index rose 2.16%; clothing home textile index rose 2.75%, relative to Shen Wan A index rose 2.12%.

Industry basic data: cotton prices rose slightly last week, and chemical fiber prices fell slightly. Domestic 328 spot stock rose 0.06% to 19470 yuan / ton, Zheng cotton main contract rose 3.1% to 19350 yuan / ton. Polyester staple fiber fell 2% to 9450 yuan / ton, viscose staple fiber flat at 12430 yuan / ton, nylon sliced fell 0.5% at 19300 yuan / ton.

Our view: in February, exports were affected by the Spring Festival. The cotton subsidy policy was good for cotton spinning enterprises. Due to the impact of the Spring Festival, a sharp increase in exports in January and a sharp fall in exports in February were not a trend. Cotton direct subsidy policy was introduced, and the pilot Xinjiang was subsidized 380 yuan per mu. In the short term, domestic cotton prices will remain stable due to the decline of the mainland planting area and the national dumping and storage. In the medium to long term, the cotton subsidy policy will promote the narrowing of cotton prices between inside and outside.

about Cotton spinning enterprise For example, the price of inner cotton determines the cost. The trend of cotton price determines the price. The narrowing of the difference between the inside and outside cotton prices will enhance the gross profit of enterprises, enhance their competitiveness and improve their operation. In recent years, we have recommended the leading men of the same price men's wear industry, keno technology, home textile leading company, home textile company, and China Textile Co., Ltd.