Textile And Clothing Industry Has Entered The 2 Pformation Stage Of Industry + Internet. The Internet + Prospects Are Immeasurable.

Since 2015

The apparel industry is attracting investment opportunities.

(1) textile this year

The industry rose by 115.2%, relative to the market's excess return rate of 62.4%, ranking fourth in all the world class industries, second only to computers, media and light industry.

(2) the atmosphere of industry pformation is strong, and the valuation increase has contributed to excess returns: the textile and garment industry has been losing the market in the past 2 years, and has gradually outperformed the market since the second half of 2014.

In July 2014, we released the cross boundary pformation report and raised the industry rating to the best in the four quarter.

We believe that there are five reasons for the pformation of textile and garment industry as a pioneer position: (1) the number of private enterprises in the industry is more, and the thinking is active: the number of private enterprises and the market share of the industry are all 74%, while the private owners are more active in thinking, active in pformation, more concerned about market value, and easy to form an atmosphere of industry comparison.

(2) industry companies are mainly located in economically developed coastal areas. Private capital operates mostly: Zhejiang, Jiangsu and Fujian are the top three of the company and the top three of the company's total market capitalization.

Zhejiang, Jiangsu, Fujian, Shanghai and other places are relatively developed coastal economies, and the operation of private capital is normal.

(3) the company can use more cash on its account to provide a basis for pformation: in the 2008-2011 years, the industry has experienced a IPO peak, raising more funds, and most of the proceeds have not yet been used up.

From the amount of money, Hai Lan's home (its own funds are not fund-raising).

Clothing,

The largest amount of money can be spent on the accounts of King 9 and YOUNGOR (excluding realizable financial assets).

(4) the market value of Companies in the industry is generally not large: at present, the market value of the industry companies is between 50-200 billion, and we expect to form several 200-500 billion market capitalization companies in the future. At the same time, referring to the foreign garment industry, there will be more than 100 billion of the market value companies in the future.

(5) the horizontal comparison of sub industries shows that there are still valuation depressions in the industry: the seven wolves and fuanna in men's and home textile industries are the market capitalization depressions, Hai Lan's home and Semir clothing are low valued, and there will still be more room for future.

We believe that industry and the Internet are the major trends in the pformation of the textile and garment industry. Currently, there are basically eight directions for pformation: (1) Internet Finance (including supply chain finance): good news birds (set up small fish suits, share loans in Wenzhou and pocket money management, create Mini version of "ant gold clothing"), Jiaxin silk (based on China's cocoon silk market to build supply chain finance), seven wolves (Group shares are still in the electricity supplier, build clothing supporting services + supply chain finance), shares of shares (shares, micro auction, online auction + supply chain finance), Hai Lan's home (has formed a healthy ecological circle including suppliers, and has the basis of Supply Chain Finance).

(2) cross-border electricity providers: 100 round pants industry (to create cross-border E-commerce Platform Alliance), Semir apparel (shares Korea cross-border business platform), the United States and the state of clothing (to create "fan" APP gathered in the global fashion brand), the stock of Rancy (South Korea's resource advantages), seven wolves (expected), fuanna (expected), Maison culture (expected).

(3) social networking mobile Internet (SoLoMo): Semir costumes (in cooperation with Korean fashion brand ISE, will focus on mobile terminals), Mei Bang dress ("fan" APP), long posture shares (shares "star Wardrobe"), and warth shares (shares "micro sell").

(4) sports industry: good people bird (shares tiger tiger, set up two industrial funds, layout sports industry), Pathfinder (set up sports + tourism industry fund), Xun Xing shares (hopefully purchasing sports assets).

(5) children's animation industry: Semir clothing (children's clothing brand cluster + shareholding genius baby early education, the future still has M & A expected), Langer's share (acquisition of Korean children's clothing the first brand aka Bang), Maison culture (create animation industry ecosystem).

(6) smart home: Roley home textiles (with cooperation with Ho Tai, set up a number of industrial funds), fuanna (with pformation expectations), Meng Jie home textiles (and cooperation with Ho Tai).

(7) big health industry: YOUNGOR (set up industrial fund) and Luo Lai home textiles (expected).

(8) industrial 4 flexible supply chain: reporting birds (promoting C2B mass customization business), nine Mu Wang (custom business), YOUNGOR (custom business), Hai Lan home (St. Keno career dress custom), AOKANG International (men's shoes customization), Lu Tai (Junyi shirts customization).

Judging from the way of sub industry pformation, we think that there are following trends: (1) casual wear and women's clothing industry: strong fashion attributes, and will show multi brand operation, platform development (cross-border electric business, etc.) in the future. The fashion mix APP based on people's economy is gradually rising, and the quick response supply chain will become the lifeline of the company.

(2) men's clothing industry: the scale effect and cost performance are outstanding, the supply chain finance has the foundation, and the flexible customization based on informationization is the development trend.

(3) children's clothing industry: it has a strong pmission, and creates children's whole industry chain, including IP R & D + animation games, film production + derivatives, etc.

(4) home textile industry: the industry leaders have layout smart home, multi brand, extension category to improve consumption frequency, cost-effective home mode is the future direction.

The textile and garment industry has entered the 2 pformation stage of industry and Internet. The leading industry of traditional industries has strong industrial advantages. Once inserted into the Internet + wings, the prospect is immeasurable.

Stable performance, the creation of children's industry and fashion industry, two major ecological circles), Luo Lai home textiles (pformation strategy clear, has set up five industrial funds, future layout in the smart home and Internet +), fu'anna (accelerated pace of pformation, strong pformation), seven wolves (group assets consolidation, the future pformation direction includes cross-border electricity supplier and supply chain finance), nine Mu Wang (ESOP, strong pformation expectations), good bird (around the small fish gold clothing to build the Internet financial ecosystem), AOKANG International (ESOP, strong pformation expectations), Lanzi shares (the pformation of the "Pan fashion ecosystem" clear strategy) and Pathfinder (layout outdoor, sports and tourism three major ecosphere). Taking into account the company's texture and available funds, we recommend 10 companies that are expected to become more than 20 billion of the market in the future: Hai Lan home (good performance, good supplier ecosystem, supply chain finance base), Semir apparel (