There Are Still Good Growth Companies In The Textile And Apparel Industry.

　　 Spin clothing Industry: pay close attention to the companies with good growth in China Daily.

　 Investment points

Market review: last week, the index was significantly adjusted by factors such as the diversion of new shares, the Shanghai and Shenzhen 300 fell 1.82%, the gem fell 3.53%, and the textile and garment industry fell 2.96% in the whole week, which was weaker than the Shanghai and Shenzhen 300 index. In terms of stocks, last week, most stocks in the industry fell exponentially, and the larger stocks rose earlier in the week.

A share industry and company important information: (1) in May 2014, the number of retail sales of 100 major large-scale retail enterprises decreased by 0.1% compared with the same period last year, and the retail sales of gold and silver jewelry increased by 5.2% compared with the same period last year. The retail sales of clothing increased by 5.4% compared with the same period last year, while the retail sales volume decreased by 2% compared with the same period last year, and the retail sales of cosmetics increased by 5.2% over the same period last year. (2) Luo Lai home textile (002293, buy): Ms. Xiao Yuanli, vice president of the company, increased the company's 37572 shares through the Shenzhen Stock Exchange Trading System in June 19, 2014. The average transaction price was 19.73 yuan, and planned to increase its holdings of not more than 80 thousand shares of the company between June 19, 2014 and June 30, 2014 (including the holdings of the shares). (3) YOUNGOR (600177, overweight): in June 17, 2014, YOUNGOR (Hongkong) Industrial Co., Ltd., a wholly owned subsidiary, signed an IPO agreement with CITIC Pacific, investing HK $775 million, and subscribed 57 million 506 thousand shares of CITIC Pacific new shares at HK $13.48 / share.

Investment strategies and recommendations:

Retail sales in May show that brands are influenced by holidays and other factors. Clothes & Accessories Sales improved compared to April, but the whole thing still needs to be tracked. From our key clothing listed companies, we expect that most of the Chinese newspapers will continue to decline for the first quarter, which may narrow slightly compared with the first quarter. Some home textiles, outdoor and children's wear and high cost performance men's clothing are expected to maintain relatively good growth. We maintain an early view of the industry: 2014 is the stage of brand building differentiation. The fastest recovery in the industry may be in the middle of 2015. In the 14 years, the industry investment strategy suggests that companies with "growth performance protection + new innovation logic" should be looked up from bottom to top. At present, Semir clothing (002563, overweight), Pathfinder (300005, buy), Hai Lan home (600398, buy), fuanna (002327, buy), Luo Lai home textile and Lu Tai A (000726, buy). Cosmetics giant Shanghai Jahwa (600315, buying) was affected by personnel turmoil recently, the share price is relatively low, but we think it is still attractive from the whole year.

　 Risk warning

Industry investment risks come mainly from China. retail Terminal recovery is slower than expected.