Textile And Garment Industry In The First Week Of January Weekly Report: Cotton Production Further Concentrated In Xinjiang

The textile and garment industry is losing 0.23pct.

This week, the Shanghai Composite Index fell 0.89%, the SW textile and garment industry fell 1.12%, and the SW textile and garment industry lost 0.23pct.

Among them, SW textile manufacturing fell 0.45%, SW apparel home textile fell 1.53%.

In 2018, the textile and garment sector dropped 34.33% from the beginning of this year, and the valuation has certain attraction.

(1) ups and downs: making better than clothing.

Since the beginning of 2018, the textile and garment industry of Shin Wan has dropped by 34.33%, while the Shanghai Composite Index has fallen by 24.59% during the same period, which has lost 9.74pct in the market and has been ranked twentieth in all the industries and industries in the beginning of this year.

Among them, the textile manufacturing / clothing home textile sub sectors fell by 32.97%/34.29% respectively, and the textile manufacturing sector performed better than clothing home textiles.

(2) valuation: historically low.

As of December 28, 2018, the PE of shwan textile and garment industry was 17.23 times, and the PE premium level of Shanghai and Shenzhen 300 was 9.23%, far below the average 34.62% of the PE premium level of the textile and apparel industry relative to Shanghai and Shenzhen 300 in 2005.

At present, the textile and garment sector PE is the middle and lower level of various industries. The industry PE has dropped to a low level of history, lower than the average level of nearly 5 years, and similar to the second half of 2014, plate valuation is attractive.

Cotton production was further concentrated in Xinjiang in 2018.

According to the data released by the National Bureau of statistics, the output of cotton in 2018 was 6 million 96 thousand tons, an increase of 7.8% over the previous year.

Among them, Xinjiang cotton production was 5 million 111 thousand tons, an increase of 11.9% over the previous year, and Xinjiang cotton production accounted for 83.8%, an increase of 3PCT over last year.

The increase of production in Xinjiang was mainly contributed by the increase of planting area. In 2018, the cotton planting area in Xinjiang increased by 12.4% compared with the previous year, while the cotton yield per unit area decreased by 0.4% compared with the previous year.

The cotton production increase in Xinjiang is mainly based on the state's policy of subsidize cotton price in Xinjiang area, especially the implementation of the "three fixed" policy and the abolition of the "five unification" policy.

The cotton yield per unit area in Xinjiang decreased slightly, but it was 12.83% higher than the national level.

Overall, the trend of cotton production in Xinjiang has been further confirmed.

Recommended target: male menswear recommends red bean stock; casual wear recommends Semir clothing; home textiles recommends Luo Lai life; textile manufacturing recommends blon East.

Risk warning: terminal consumer demand is weak; exchange rate volatility risks; cotton prices fall or fluctuate significantly.