Textile And Garment Industry: The Industry Has Entered A Period Of Adjustment, And Some Enterprises Are Developing In Parallel.

Last week's market review

Plate fell 2.01 percentage points, the Shanghai and Shenzhen 300 index rose 1.85 percentage points during the same period, and the textile and garment sector lost 3.87 percentage points.

Data tracking

Macro data: in November 2014, the clothing production price index (PPI) was 1.40 year-on-year, down 0.20 percentage points from last month.

Price index: the domestic price index of Keqiao's textile industry in December 26th was 94.03, down 0.03 from last week; the textile price index of Keqiao was 103.94 in December 22nd, 0.01 lower than last week; the Shengze silk price index was 101.20 in December 26th, 0.06 lower than last week; the leather price index in December 19th was 112.44, up 0.49 over last week.

As of December 28th, domestic 328 spot spot reported 13617 yuan / ton, 0.06% lower than last week's ring ratio.

Main news & bulletin summary

1) search for 10 million yuan to invest in the establishment of equity investment fund, 2) Jin Fei Da intends to enter the automotive air conditioning compressor industry double main industry parallel development, 3) Shandong Ruyi's position: the company does not involve manipulation of stock behavior, 4) blue Ding Holdings: Announcement on the progress of asset disposal, 5) *ST Sanmao: Announcement on Directors' resignation, senior management resignation, 6) card Nu Di Road: Notice on cancellation of Yuexiu branch, 7) Roley home textiles: Announcement on the wholly owned subsidiary's purchase of bank financial products, 8) Busen shares: Announcement on the controlling shareholder's pledge of shares, 9): Guangdong Broadway: a wholly owned subsidiary signed a strategic cooperation agreement announcement.

Industry perspective

In the difficult pition, enterprises with poor management or lack of competitiveness gradually turn to new industries. The enterprises left behind focus on their main businesses to gradually improve and upgrade, but the process of improvement and upgrading takes some time. Brand clothing is faced with the diversion of e-commerce and the competition of international brands. It takes a long time to accumulate enough competitiveness.

At present, the undervalued enterprises with good fundamentals and pformation and upgrading are expected to have greater investment returns.

1) Pathfinder: sports policy is favorable for the development of sports industry, and the establishment of outdoor ecological platform is conducive to the company's strength and scale.

2) Roley home textiles: Roley home textiles to the direction of large household development, expand the larger market space; the company actively develops electricity supplier channels, to the home textile platform enterprise development.

3) aviation and civilian shares: pformation and upgrading of printing and dyeing industry, and gradually increasing the concentration of industries.

4)

A unique business model suitable for the Chinese market, as well as high quality and medium priced products to adapt to China's current economic level.

5) Semir clothing: Semir's brand strategy is pragmatic and its performance is determined, and the company develops to the comprehensive service provider for children's industry.