Textile And Garment Industry: 0.47 Percentage Point Increase

Last week,

Industry sector rose 0.47 percentage points, the Shanghai and Shenzhen 300 index rose 2.78 percentage points during the same period, and the textile and garment sector lost 2.31 percentage points.

Data tracking

Macro data: July 2016, clothing Limited

The retail sales of needle and textile enterprises increased by 9.4% compared to the same period last year, while the sales volume of clothing, shoes, hats, needles and textile enterprises increased by 7.3% over the 1-7 months.

Price index: the domestic price index of Keqiao's textile industry in August 5th was 92.75, down 0.03 from last week's price; the textile price index of Keqiao was 104.94 in August 8th, 0.13 lower than last week; the Shengze silk price index was 101.55 in August 12th, 0.07 higher than last week; the leather price index in August 12th was 96.49, which was 0.06 lower than last week's price.

As of August 12th, domestic 328 spot spot reported 14746 yuan / ton, down 1.22% compared with August 5th.

1) announcement on the extension of the annual sale time of the national cotton reserves in 2016 (fifteenth); 2) China will promote cotton planting in Africa and provide full support for it; 3) the consumer market in China will further weaken in July and increase by 10.2% in July; 4) the Penn State University has developed a new self-healing fabric; 5) Jiaxin silk has acquired 10.5% stake in Zhejiang golden silkworm network and related pactions; 6) has adjusted the scheme for non-public offering of shares; 7) Xinlong holding has resumed notices and about adjusting the company's issue of shares and paying for the purchase of assets and raising matching funds and related pactions.

The decline of textile and garment exports has become a trend. Policies have encouraged cross-border electricity suppliers to export. The trend of steady growth in domestic demand has continued, and the pformation and upgrading of textile and clothing has gradually emerged.

We maintain the previous investment logic: Boom sub industry, cross-border electricity supplier growth of more than 30%; traditional leading enterprises, the future clothing industry most likely to produce big bull stocks in the middle and low end of the mass brand; supply chain integration, enterprises with supply chain integration expectations are worthy of attention; brand leading enterprises directly face consumers, easy to integrate supply chain; clear pformation of the development of large enterprises are concerned: brand clothing enterprises use traditional supply chain advantages and new industries to graft, develop new market space, clear and fully prepared enterprises are concerned.

Recent concerns: high end brand merger and acquisition expectations (such as colis, vicknas) and Xinjiang textile that has invested in government subsidies and state-owned enterprises reform attributes; we continue to recommend cross-border electric business (cross border, modern Avenue), industry leader (sea Lanka house), supply chain integration (Antarctic electricity supplier, Huafu color spinning), IP related (Mei Sheng culture, love, Saturday).

Risk warning: raw material price fluctuation; systemic risk.