The Ministry Of Industry And Commerce Recently Issued The Five Year Development Plan For The Textile Industry.

In the outline of the thirteenth five year plan for national economic and social development, Made in China 2025, after the release of other hierarchical plans, the textile and garment industry ushered in " Spin Industrial development plan (2016-2020 years) (hereinafter referred to as "planning"). According to the Ministry's website, the Ministry of industry and Commerce recently issued the five year development plan for the textile industry.

The plan puts forward that intelligent manufacturing and green manufacturing should be promoted to promote the industry to the middle and high end, and to build a strong textile power initially. "Planning" promotes industrial innovation capability and vigorously implements " Three products "Strategy", promoting textile intelligent manufacturing, accelerating the process of green development, promoting coordinated regional development, and enhancing the comprehensive strength of enterprises, have put forward specific tasks in six aspects.

Specifically, the plan proposed that during the "13th Five-Year" period, the average annual growth rate of industrial added value of textile enterprises above Designated Size remained at 6%-7%; textile and garment exports accounted for the global market share remained basically stable. The growth mode of textile industry is changing from scale speed type to quality benefit type. At the end of 13th Five-Year, the expenditure on research and test development of large and medium-sized enterprises reached 1% of the main business income. During the "13th Five-Year" period, the amount of invention patents in the textile industry increased by 15% annually, and the total labor productivity of Enterprises above designated size increased by an average of 8% per year. At the end of 13th Five-Year, the proportion of fiber consumption of the three main categories of clothing, home textiles and industrial products reached 40:27:33.

Textile and manufacturing companies performed well in the first half of this year, benefiting from the depreciation of the renminbi and the rise in cotton prices. According to statistics, in the first half of this year, the textile manufacturing industry achieved a net profit of 1 billion 976 million yuan, an increase of 8.24% over the same period last year, and the apparel home textile industry achieved a net profit of 4 billion 742 million yuan, a decline of 8.11% compared with the same period last year. The textile and garment industry achieved a net profit of 6 billion 730 million yuan, down 8.17% compared to the same period last year.

From the three quarterly bulletin notice, according to statistics, 42 of the 80 listed companies of shwan clothing and home textile market disclosed three quarterly bulletins, 7 of which were increased in advance, 11 were surpluses, and 12 were slightly increased.

"Overall, the performance of manufacturing enterprises is better than that of brand clothing. The fastest growth in the first three quarters of 2016 is the search for special, Maison, Xinye textile and Semir apparel." CITIC Securities analyst Xue Yuan said.

Xue Yuan suggested that we should grasp the two main lines of investment: first, we should focus on the target of the main industry's strategic layout, strong execution, clear objectives and continuous strategic promotion: the key is to recommend the song and search; two, the main business is good, the performance is beautiful, and the safety margin is the target: Xinye textile and Semir clothing are recommended.

Shi Hongmei, an analyst at Orient Securities, believes that short-term recommendations are concerned about three expected quarterly better companies, such as cross-border, Antarctic electricity providers, search for special, Huafu color spinning, Semir clothing, Hai Lan home, Xinye textile, Luen Fat shares, and export companies that are devalued by RMB, such as Lu Tai A, Luen Fat share, Xinye textile, Rebecca and so on. The leading industry of chain efficiency and industrial market share is to recommend Semir clothing, Hai Lan home and Weixing shares, focusing on Georges, Hui Jie shares and Huafu color spinning; two, industrial innovation companies, and suggest that they should pay attention to cross-border, Antarctic electricity providers, search for special, Huafu color spinning and so on. Three, companies that benefit from devaluation of RMB and rising cotton prices reflect that Xinye textile, joint stock, Fu day shares, Huafu color spinning and so on. Four, the game elasticity brought by a company with a clear market transformation expectation (short term policy shock). The main line of investment in the medium term industry should be considered from four aspects: first, the growth of minority performance is relatively clear and undervalued, and it is committed to supply around its own business.