The Overall Market Of Textile And Garment Industry Is Weak, Three Quarterly Performance Is Mediocre.

This year the textile and garment industry has recovered.

National Bureau of statistics data show that 1-8 months of this year, above scale

Industrial added value increased by 6.7% over the same period last year, which is 0.4 percentage points higher than that of the above scale enterprises in the same period.

Of the 33 companies in the textile, apparel and apparel industries of the SFC, 19 achieved net profit growth in the first half of 2015 and 14 declined.

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The industry as a whole is still in low operation, and the three quarterly report is mediocre.

Taking into account the rebound in the market in mid 9 months, the valuation of the brand sector also rose to a reasonable upper limit.

We believe that the general trend of improvement has not yet been established. Therefore, the defensive nature is not strong, and some companies are dragged down by three quarterly reports or by non recurrent investment losses, and there is no possibility of adjustment.

But there are fundamental support, in the adjustment of the valuation shows the advantages of high-quality stocks, Q4 can still grasp the valuation switch market; at the same time, after the three quarterly disclosure quarter adjustment, taking into account the Q4 close to the SFC restricted sale ban date (half a year), if the stability of the market upgrade, investment and other pformation activity expectations or improve, the layout of the ecological circle leading oversold stocks, also can grasp the interval shock trading rebound opportunities.

The industry as a whole is still at a low level.

The demand side is still at the bottom, and the price pressure is bigger. The supply side is in the late stage of "going to the store", but some enterprises have already taken the lead to touch the bottom. The mainstream brands in the country are in the process of pformation from extensive growth to new mode (value chain optimization / internationalization / multi brand / multi category / ecological layout, etc.), and the pformation will not be accomplished overnight.

The demand side of textile manufacturing is constrained by the weakness of exports and domestic consumption, and no obvious improvement has been made. The cotton inventory consumption ratio is still at a historical high level, and there is no obvious recovery in demand.

Three quarterly performance is mediocre, and industry improvement trend has not yet been established.

There was no sign of a clear recovery from terminal demand, and most of the first three quarters of the Brand Company were operating in line with or slightly lower than expected, especially when some companies were dragged down by Q3 non - frequent investment losses.

Performance is not good; cotton leading enterprises are decreasing along with the fluctuation of cotton prices this year, and the cost of low price cotton is gradually showing, and profits are gradually improving.

Despite the improvement in the textile and garment industry, the overall situation is still very worrying. Enterprises should take preventive measures and fight this hard battle.