Textile And Garment Industry Weekly: Next Year, The Valuation Of The Repair Market Is Coming.

The contents of this issue are as follows:

A week's main review: 1, industry view: in November 2014, the retail sales of 100 major major retail enterprises increased by 2.6% compared to the same period last year, achieving a year-on-year positive growth for two consecutive months. clothing Retail sales increased by 0.9% over the same period last year, 0.7 percentage points higher than the same period last year, and retail sales of cosmetics increased by 3.3% over the same period last year, slowing by 2.6 percentage points over the same period last year.

Industry and company tracking: (1) Hai Lan's home Tracking: the company's e-commerce positioning under the service line platform, online and offline share the same price, the offline customer experience to copy online, Tmall ranked the top three, Jingdong ranked first, this year is expected to achieve 400 million yuan, Zheng Shang to open up and open up online and offline CRM system. At present, the proportion of electricity supplier income is only 2%, and the future is expected to reach 10%. (2) Jiaxin silk research: the company strategy is based on the main industry and diversified development. Cocoon silk trading market provides B2B transactions, online finance, logistics services and collaborative business services. The trading platform has the innovative trading mode such as spot listing and collaborative commerce. In the future, there are expected varieties. Now we have silk floss. We do not rule out silk, other textile materials and other commodities that are jumping out of big textiles. (4) red bean stock survey: Future Ltd will base itself on textile and garment industry, learn from Hai Lan's home mode, transform from wholesalers to chain retailers, and open more shopping centers. (3) Home textile Tracking: the company invested 10 million yuan in its own capital to set up a wholly owned subsidiary, Nantong Luo Lai Brand Management Co., Ltd. (4) Hua Fang textile tracking: the company issued 58 million 820 thousand shares in 8.5 yuan / share, and raised 500 million yuan. After deducting the cost, the company used the expansion project of the cogeneration unit of the company. The company has been renamed Zhejiang Jiaxing energy chemical Limited by Share Ltd, and the securities will be converted into Jiahua energy in December 24th. The company is planning major issues and will be suspended from December 22nd. (5) search for special tracking: the company subscribed for 29 million 800 thousand yuan to Shenzhen ou ruer Garments Co., Ltd., registered capital of 1 million 240 thousand yuan, accounting for 19.87% of the registered capital after the completion of the capital increase, 249 thousand and 100 yuan of registered capital at 16 million 950 thousand yuan, 19.94% of the registered capital after the completion of the capital increase, and 15 million 950 thousand yuan to subscribe for the registered capital of Yunnan business micro shop 249 thousand yuan, accounting for 19.94% of the registered capital after the capital increase. Participation in the establishment of the South China Sea growth six equity investment fund, the subscription amount of RMB 10 million yuan. (6) Saturday tracking: the company intends to invest 9 million shares in nearly 10 years of women's game development and operation experience of Suzhou Industrial Park billion Dynamic Network Technology Co., Ltd. (7) news birds tracking: the big shareholder news bird group transfers its 29 million 300 thousand shares to Wu Zhen Sheng, Wu Wenzhong, Ye Xin Dian by agreement transfer mode, Wu Zhize and his concerted action Wu Tingting, Shanghai gold gauze become the largest shareholder. (8) GUI bird tracking: the company intends to jointly invest with China Europe asset management (Shanghai) Co., Ltd. to set up Shanghai GUI Ou Investment Co., Ltd., the company invested 4 million 900 thousand yuan, accounting for 49%. (9) Huafu color textile tracking: subsidiary Zhejiang Huafu color spinning is located in Shangyu Economic Development Zone, No. 655, Ju Ying Road, which was demolished, and the compensation for demolition was 39 million 293 thousand yuan. (10) Jia Linjie tracking: the company has completed the equity delivery of MTM company in Pakistan, and now owns 14 million 621 thousand shares of MTM company, with a shareholding ratio of 24.36%. (11) Xun Xing shares tracking: the company intends to disclose major issues and suspend business temporarily on December 18th. (12) the card slave road tracks: the company terminates the important matter, the resumption of business starts in December 17th.

Last week, the textile and garment sector was weaker than the market. Textile and apparel index fell 0.57% last week, down 2.99% from the Shen Wan A index. Among them, the textile manufacturing index fell 2.08%, Shen Wan A index fell 4.50%; the apparel home textile index rose 0.84%, relative to Shen Wan A index fell 1.58%.

Our point of view: we can focus on the undervalued value, the improvement of consumer blue chips and the huge investment opportunities brought about by policy changes under the new normal economic situation. We believe that there are two main lines of investment in the textile and garment industry at present: (1) from a fundamental perspective, we should look at the high quality consumption blue chip stocks: Hai Lan's home (sales in November increased by 50%+ compared with the same period last year, the annual electricity supplier expected to achieve 400 million revenue, the company's valuation is low, maintaining the buying rating), AOKANG's inter country (the fourth quarter performance is expected to bottom up, the ESOP purchase stock is over), the Luo Lai home textile (basic building up, the promotion of channel transformation, the establishment of brand management subsidiary, the expansion of the company's brand influence) and Semir's clothing (long term optimistic about the company's layout of children's related industrial chain).

(2) from the policy point of view, policy changes under the new normal economic conditions will bring huge investment opportunities, focusing on INTERCHINA group (benefiting state owned enterprises reform, the concept of military industry, creating sports tourism consumption mode, actively transforming to modern service industry) and Jiaxin silk (benefiting land reform and gold reform concept), providing B2B transactions, online finance, logistics and collaborative commerce and other services in the silk and silk trading market. The trading platform will have an innovative trading mode in the future, with expected varieties.