Textile And Clothing: China Daily Performance Is Dull, Long Term Stick To Value.

Combined with the overall situation in the first half of this year, the consumption boom is still not high. It is expected that the performance of the newspaper is basically the same as that of a quarterly report.

In the context of no obvious recovery in consumption, the fundamentals are not strong enough, and the sector is expected to follow the big market operation.

Combined with the expected performance of the China Daily and annual performance, it is recommended to continue to hold a steady white horse value share with steady growth and achieve a steady absolute return throughout the year.

Clothing,

(new recommendation after resumption).

And the high growth and clear cross border and Antarctic electricity providers.

Under the background of supply measurement reform, the leading enterprises in textile manufacturing industry will further benefit from the upgrading of industry concentration, and the US dollar index continues to rise in the near future, and the reserve cotton reserves will not be as good as expected. Cotton prices will rise again and are jointly affected by the above reasons. It is expected that the performance elasticity of the enterprises with large storage capacity will be strengthened in the short term, corresponding to the Huafu color spinning, Bailong East and Xinye textile.

The fundamentals of the industry are still hovering at the bottom. Cotton prices rebounded and the profitability of cotton enterprises with low price of cotton reserves is expected to improve in the context of RMB depreciation.

Brand clothing demand is still lingering low, Q1 and May growth rate continued to decline in single digit, and retail terminal price pressure is bigger.

In June, the clothing sales volume of 50 major enterprises in the country increased by 4.8% over the same period last year, the highest monthly growth rate in the first half of the year. However, from the trend of base change, the monthly base between the 15 half of the year decreased month by month. Therefore, the trend of marginal improvement will not be excluded from the appearance of retail data. However, the growth rate of single month is not yet able to determine whether the actual demand recovery trend of the terminal is established.

The demand side of textile manufacturing is devaluing well, but domestic and foreign consumption has not been significantly improved. However, at present, the price of national cotton has risen in stages under the condition that the national reserve cotton reserves are lower than expected. In this process, the profitability elasticity of enterprises with low price of cotton reserves will increase.

The consumption boom is still not high, and the quarterly performance is expected to be comparable to that of a quarterly report.

Due to the fact that the current consumption boom is not high and the weather is affected by 5 and June, it is expected that the performance of the newspaper is basically the same as that of a quarterly report.

Cotton enterprises are picking up with cotton prices, low cost cotton appears, and RMB continues to depreciate. Profitability has improved.

Investment strategy: 1, brand industry: retail sales improved slightly in June.

We believe that the current single month growth rate recovery is still unable to determine whether the actual demand recovery trend of the terminal is established. However, from the base trend of change, the monthly base between the second half of the year will decrease month by month, so the retail data representation does not exclude or will show a marginal improvement trend.

At present, under the background of undervalued market of food, beverage, medicine and home appliances, the attention of the spinning and weaving board has increased slightly. In the process of no allocation to low allocation, the white horse value shares with steady growth will continue to be held in the process of combining the performance of the China news and the annual performance expectations. The whole year will get a steady absolute return, corresponding to the Semir costumes, the song's (new recommendation after the resumption), the home of Hai Lan, and the cross border links with high growth performance (the approval process for speeding up the approval increase), and the Antarctic electricity supplier (suspension).

But in terms of Zhou's market, taking into account the issue of the "new information management policy" on Friday, it will directly target the market allocation and high leverage. The short-term market may be affected. Therefore, in light of the fundamentals of the industry, it is suggested that we should take a cautious attitude towards the textile and garment sector in the short term.

2, textile manufacturing: under the background of the reform of supply measurement, the leading enterprises in textile manufacturing industry will further benefit from the upgrading of the industry concentration. The leading enterprises of cotton enterprises and printing and dyeing enterprises -1.html "> printing and dyeing enterprises are benefiting from this, and the US dollar index has continued to rise in recent years. With the beginning of the end of May, the quality of state-owned cotton stores that we were worried about before, and the expected price increase in the short term is expected. Therefore, due to the common influence of the above reasons, it is expected that the performance of the enterprises with short storage capacity will be strengthened in the short term, corresponding to the Huafu color spinning, Bailong orient and Xinye textile.

But in the long run, cotton prices continue to rise, the basic support strength is not strong, the late trend depends on the policy of dumping and storage, and the big cycle of cotton enterprises has not yet arrived.

Risk warning: 1, demand recovery is lower than expected; 2, pformation is lower than expected; 3, the short-term valuation of the subject investment target is still high.