In The First Half Of The Year, The Market Performance Of The Textile And Garment Sector Was Weaker Than That Of The Big Market.

Since the beginning of 2016 (2016.1.1-2016.6.15), the textile and garment sector index has fallen by 20.25%, representing eleventh of the 29 tier one industries in CITIC, while the Shanghai and Shenzhen 300 and Shanghai Composite Index fell 16.47% and 18.42% respectively.

The trend of textile and garment sector is weaker than that of the big market.

Investment strategy in the second half: focus on reform and innovation

Affected by the economic environment in the first half of this year, the continuing downturn in industry terminal demand and the worsening of export data accelerated the acceleration of integration of supply chain and exploration of pformation and innovation in some of the listed companies in the industry.

It has accelerated the pformation of some old listed companies from the "old" mode made by a single traditional textile to the "new" business mode, and the differentiation within the industry has already begun.

2016 in the second half of the year, we think that we should focus on the reform and innovation in the industry. We should pay attention to the following investment logic:

1, investment logic 1: pay attention to reform and innovation - supply chain integration and efficient supply chain integration management can not only shorten the turnover time of enterprises' occupation of funds, but also make production adjustment more quickly and effectively for terminal needs, reduce the risks faced by enterprises, and quickly achieve substantial profit growth.

In the second half of 2016, we think that we can focus on the company that integrates all channel layout and supply chain management.

The main recommended companies are: Bo Bao Long, Hua Fu color spinning, search for the first class.

2, investment logic two: focus on reform and innovation diversification. In recent years, many companies in the textile and garment industry are seeking diversification. In the stable development of the main business, they seek the path of M & a pformation and form a "main business +X" business model.

We believe that in the current environment of recovering the textile and garment industry in a relatively slow way, exploring new industrial fields can provide a variety of possibilities for the future development of the company and improve the company's profitability.

The main companies recommended are cross-border.

), Kaiser shares (media film and television), Maison culture (animation), and long style shares (beauty treatment).

Risk warning

1, the macro economy has slowed down sharply; 2, the industry fundamentals have been recovering slowly; 3, the domestic demand market has been recovering slowly; 4, the price of raw materials has gone up and the cost has increased substantially.