Medium Term Investment Strategy Of Textile And Garment Industry In 2014

Here world clothing shoes The little weave of the hat net is introduced to you in 2014. Spin The medium term investment strategy of garment industry: Based on the main business transformation and innovation, and moderately concerned with cross-border integration.

In the first half of 2014, the textile and apparel industry's operating situation and stock price review: the industry as a whole showed weak growth in export manufacturing and the bottom of the domestic brands. The report on the list of listed companies is that the growth rate of export manufacturing companies has slowed down, and most Brand Company earnings tables continue to deteriorate. In terms of share prices, most mainstream companies are generally not performing well due to their poor fundamentals. The companies that increase fairly well mainly come from cross industry mergers and acquisitions, industrial chain extension, high performance growth and high transfer.

In 2014, the industry's key companies foresight: we expect the mainstream companies to report generally unsatisfactory, with relatively high growth rates, such as Hai Lan home, YOUNGOR, Pathfinder, and Semir. Clothes & Accessories Lu Tai, three home textile companies and Weixing are also expected to have an increase of around two figures or more. Most other brands will lose profits.

The industry outlook for the second half of 2014 is looking ahead: the manufacturing competitiveness needs to be consolidated, the brand bottom will be differentiated, and the whole industry will strive for a breakthrough in transformation. (1) export manufacturing: earnings growth may be high before and after low, cotton direct subsidy in medium and long-term good industries. (2) brand retail: bottom differentiation, profit growth is expected to be low before high. (3) key companies are seeking breakthroughs in transformation. We believe that the breakthroughs in the future transformation of the industry may come from brand differentiation and cost performance promotion, upgrading of retail end management capabilities, integration of online and offline channels, professionalization and professionalization of management teams, and extension of industrial chain or group development through merger and acquisition integration.

We expect that the branded apparel industry will be bottoming up in the middle of 2015. In the process of industry recovery, companies with large self adjustment will gain greater flexibility. But in the future, they will really get the valuation premium or those Brand Company that can adapt to the new economy and the Internet environment. 2014 will become the watershed year of the industry. The differentiation between brands will intensify. Some Brand Company will be marginalized or even eliminated. Only a few companies who have pioneered the transformation and breakthroughs in product and customer interaction experience can win and gain a renewed valuation.

Investment strategies and recommendations:

Investment strategy in the second half of 2014: Based on the main business transformation and innovation company, and appropriately pay attention to cross border integration varieties. (1) export manufacturing: we are concerned about the global leading industry in the subdivision industry, and the varieties with high margin of valuation. We continue to recommend Lu Tai A (000726, buy). (2) brand clothing: we are concerned about the new logic of performance guarantee and transformation and innovation. In the second half of the year, we will continue to favor the Pathfinder (300005, buy), Semir costumes (002563, overweight) and Hai Lan's home (600398, buy). (3) pay close attention to the cross border regrouping of industries, especially those companies that are good in cross-border industries and may have continuous development plans, such as 100 round pants industry (002640, not rated), Thailand shares (002517, not rated), Maison culture (002699, not rated).

Risk warning

domestic Cotton price The impact of short-term continuous decline on the profitability of manufacturing companies is less than expected in the domestic retail recovery process.