RMB Depreciation: Textile And Garment Industry Is Expected To Usher In A Positive Stage.

Analysts believe that with the recent RMB dollar exchange rate continued to decline, the export business of the United States accounted for a larger textile and apparel listed companies are expected to usher in a positive stage.

In recent years, the competitiveness of China's textile and garment industry in the world's main markets has been weakened, and its main market share in Europe and the United States has been declining due to the appreciation of RMB and the rising cost of labor and raw materials.

Data from the China Federation of textile industry show that in 2014, the total export volume of textiles and clothing was 298 billion 430 million US dollars, an increase of 5.1% over the same period last year, and the rate of increase was 6.1 percentage points lower than that of the previous year.

China's textile and apparel share in the first 11 months of 2014 in the US, Japan and the EU import market decreased by 0.8, 3.9 and 0.5 percentage points respectively.

In spite of the present overseas development

It is difficult to improve in the short term, but industry experience shows that the depreciation rate of RMB against the US dollar is 1%, and the sales profit margin of the textile and garment industry will increase by 2% to 6%.

Everbright Securities Research Report believes that if the RMB continues to depreciate against the US dollar,

Because of the higher export proportion, the profitability of the industry will be improved. On the one hand, it will help enterprises to reduce costs and improve the export competitiveness of their products; on the other hand, it will help enterprises gain exchange gains and losses.

From the perspective of A share listed companies, the RMB devaluation is expected to be favorable for export business, especially for textile leading companies and garment leading companies, which account for a relatively high dollar settlement business.

Recently, the A share market has been boosted by factors such as the depreciation of the RMB against the US dollar, and the overall performance of the textile and garment sector is stronger than that of the broader market.

Kim Feida currently sells 90% of its main products.

It is one of the largest ODM and OBM manufacturers in China.

The continued depreciation of the renminbi will help increase sales and profits.

The 2014 semi annual report shows that the income of the American market accounts for 37.41% of the total business revenue of the company.

Zhejiang Yongqiang is a large modern enterprise group mainly producing outdoor leisure furniture, sun umbrellas, tents and other products. The company has the right of self import and export, of which North American sales account for 43% of the total business revenue of the company.

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The China outdoor products market 2014 annual survey report released by China Textile Association outdoor products branch shows that at present, more and more people take part in outdoor activities in China, especially in the context of vehicle popularization, outdoor activities are more colorful.

Running, skiing, cycling, water projects, air projects and other special activities have begun to expand from a small scale, and more and more enthusiasts have joined in, especially under the elitist "halo" effect, which has begun to produce signs of new fashion and high-end popularity.

In view of this situation, Guo Fanli, director and director of research at CIC, believes that with the change of people's sports preferences and the improvement of material level, some sports categories which are rather non mainstream in the past are expected to become mainstream products in the future.

"Skiing, outdoor sports and other sub fields should pay attention to the development of the whole industry chain. Equipment, clothing, training, competitions and other links are worth digging deeply, while paying attention to the dissemination of sports challenge spirit."

Guo Fanli suggested.

In the past time, the development of sports industry is relatively slow. "This is mainly due to the fact that the sports industry is not marketization and the color of administrative monopoly is strong.

Under the high monopoly, the rent-seeking space is large and fraud is serious, which is not conducive to the healthy development of the sports industry.

With the emphasis on sports industry and the expansion of sports market demand, the government is reforming the sports industry, and the sports industry will soon usher in an all-round development.

Guo Fanli said.

The subdivision of the industry and the warming of the industry policy have produced some incentives at the capital level.

Public information shows that some listed companies have adopted the establishment of sports industry fund and other means to cut into more sports subdivision areas.

In this regard, Guo Fanli believes that if we take advantage of the capital market in the future, we can introduce venture capital on the one hand, and the enterprises in these non mainstream sports sub sectors will have smaller scale and lower level of development. Venture capital can provide financial support for them, and at the same time, it can improve its management system. The introduction of VC is the key step of its listing. On the other hand, we should make full use of the bond market and issue bonds abroad.