The Brand Of Textile And Clothing Industry Crosses The Peak And Valley Of The Industry.

Industry cleared.

Leading the market share to rebuild opportunities.

2011, since the end of the year, the brand clothing industry has been affected by multiple factors such as high inventory, channel changes, and high price.

After several years of adjustment, the supply side has changed greatly, and a large number of enterprises have withdrawn or pformed. The main findings are as follows: 1) a large number of small brands have withdrawn from the market; 2) many large listed companies are seeking pformation; meanwhile, the demand side has not shrunk and is still growing steadily, and at the same time, it shows the characteristics of channel diversification and demand fragmentation.

During the adjustment period, the supply and demand changes will restructure the competition pattern, supply contraction and demand growth. The leading companies that will stick to the main industry will benefit from it, and will further enhance the market share. At the same time, the change of channel side will test the overall management and management ability of clothing enterprises, and the leading enterprises will have more advantages.

On the whole, clearing the industry brings the market share of the leading companies in the garment industry to a good opportunity.

Entering the stage of product becoming king, the weak recovery and the worst period of industry has already passed. From the 80 years to the present, China's garment industry has gone through many stages, namely, no brand subcontracting, channel is king, and now the product is king. At present, diversification of channels makes the availability of channels greatly improved, and the advantages of scarce resources are no longer. Products (including cost performance, personalization, etc.) become the competitive elements of enterprises.

The industry has experienced changes and growth driving force from expansion to price increase.

Before 2011, the industry was in a high boom stage and its growth rate was over 20%. At the end of 2011, the industry had accumulated a series of hidden troubles, such as two major problems, such as the backlog of inventory and the high price of products, which caused the whole industry to be adjusted. There was a larger scale of closing the shop and the average growth rate of the industry slowed down. On the average, 2015 years ago, on the average, the stock market went to the end of the stock market and the sales side began to recover.

However, the recovery rhythm fluctuated with the interference of many factors, such as macro economy, terminal retail environment, weather and so on.

Clothing plate leading valuations are low, value investment is at that time.

In the first half of this year, A share style switching and investment tended to be prudent. Consumer white horse shares returned to public view. The future market style is expected to return to value, of which the brand clothing sector has strong defensive nature.

We believe that the value investment clothing industry is a good opportunity at this time. It is mainly based on: 1) examine the performance and market value of foreign clothing leader 2006~2015 for ten years; clothing companies have long-term investment value, and China's clothing leading industry has great potential; 2) compared with its domestic consumer goods industry, the apparel industry has been in the middle and lower reaches of the 2016 year, and the valuation is at a relatively low level; 3) compared with other leading consumer goods companies in China, the leading apparel industry is located in the lower reaches of the rise, PE, PEG and other indicators.

Focusing on Semir clothing and Hai Lan home, it is concerned that the adjustment period of the textile and garment industry of the main garment company will basically come to a weak recovery. The historical problems will be solved, the industry will develop into a benign track, the supply and demand changes will restructure the competition pattern, the small brands will be out, the listed companies will seek pformation, and the market share of the leading companies that will stick to the main industry will be improved. At present, the valuation of the textile and garment industry and leading companies is relatively low, with good investment value.

We are optimistic about medium and long term leading enterprises.

The further improvement and the opportunities brought by short-term valuation repair will screen the company from the following 3 aspects: stick to the main business, underestimate the value and position of the industry.

It is recommended that Hai Lan home, Semir clothing, seven wolves, nine herdmen and AOKANG international, which are firm in the main industry, low valuation and prominent in the industry, should be recommended. The low value extension companies such as fuanna, Luo Lai, and diversified YOUNGOR and Ordos are recommended at the present time.