Leisure Leader Continues To Recover, Part Of The Growth Of Electricity Providers And Supply Chain Exceeded Expectations.

In the past 16 years, the Q1 terminal retail sales data in the whole industry are generally in general.

In 16 or 1-2 months, the total number of clothing wholesale and retail customers above the quota increased by 8.1% compared with the same period last year, which is lower than that of the 15 year Q4 data.

Micro data in January due to the dislocation of the Spring Festival caused good growth, but 2-3 months data in general.

Retail sales of hundreds of large retail businesses declined by 5.5% in 1-2 months, while 50 data grew by 12% in January, but Q1 declined by 5.1%.

This is also consistent with the trend of our clothing company's grassroots data.

Exports, Q1 textile and clothing exports fell 2.2% and 7.3% respectively, but March was better than February.

A quarterly performance is expected to continue to differentiate, leisure leading companies continue to recover, part of the growth of electricity providers and supply chain than expected.

According to our quarterly performance report, the molecular industry will see: 1) parity.

The Q1 growth slowed down and the commercial men's clothing continued to be weak. 2) the leisure clothing continued to differentiate, and the leading Semir's casual wear business maintained a good recovery trend; 3) the outdoor products growth rate was in the slowing down cycle, and the channel merchants had the requirement to go to stock this year; 4) the high-end women's clothing of the department stores continued to search for the bottom; 5) the domestic textile industry continued weak recovery, which was not affected by the real estate sales of Q1 first tier cities; 6) the overall improvement of textile manufacturing Q1 exports was not much improved, and the difference between domestic and foreign cotton prices continued to narrow; 7) the growth of new territories in the cross border links with the Antarctic electricity suppliers grew well.

We expect that the key performance of the textile and garment industry in 2016 will be as follows:

1) 8 companies with a growth rate above 20%: xunxing shares (growth 420%, meeting expectations, low base and reduced financial cost), Antarctic electricity providers (growth of 280%, exceeding expectations), growth of 233%, exceeding expectations, high industry growth and Qianhai's Paton Xun table (125%), growth of 125%, compliance with expectations, large profits from land and housing disposal (growth of 65%, expected), YOUNGOR (60% growth, exceeding expectations, greater contribution to investment income), search at special (45% growth, expected supply chain, business performance increase in Supply Chain Management), Semir apparel (growth 20%, compliance with expectations, casual wear and children's steady growth);

2) the growth rate of 0-20% in the company has 10: Hai Lan (14% growth, expected growth, high base), 9 Mu Wang (growth 10%, expected), lt A (growth 10%, expected), Bailong Oriental (10% growth, expected), Huafu color spinning (growth 10%, meeting the lead time), bird of honor (5% growth, expected), Meng Jie home textile (5% growth, expected), China Group (5% growth, expected), seven wolves (0%, expected), AOKANG International (accord with expectation), Jiaxin silk (5%).

Anticipation), fuanna (falling 10%, meeting expectations), Shanghai's home group (down 20%, meeting expectations), Pathfinder (falling 24%, meeting expectations, main business performance declining and tourism business not yet profitable), shares of Hua Si (falling 50%, meeting expectations, main business of fur industry sluggish and rentals not yet landing), Sanfo outdoor (falling 75%, meeting expectations, increasing cost), reporting birds (slipped 90%, lower than expected, terminal pressure), Mei Xinda (loss compliance, anticipation, poor demand), modern Avenue (loss, and cross border electricity business new business input), Jialin Jie (loss is consistent with expectations). 3) 11 companies with a growth rate of less than 0: the life of Luo Lai (6%).

Investment suggestions: grasp the scarce varieties with certainty and high growth, arrange the pformation target with safety margin and steady white horse, and pay attention to the textile leader.

1) high growth targets: cross border and Antarctic electricity providers; 2) pition varieties: Shandong Ruyi (the industry's market capitalization is only 3 billion, backed by overseas resource rich large groups), Pathfinder, business win global; 3) robust white horse: Hai Lan and Semir.

4) Textile Leader: as a cyclical product of stagflation, the bottom of cotton price is determined. In the context of gradual release of overseas capacity and devaluation of RMB, we are concerned about the opportunities of Lu Tai, Hua Fu and Bailong.