Orient Securities: The Textile And Garment Industry Has The Opportunity To Make Up For Inflation.

In the 1-2 month, the national retail sales of consumer goods increased by 8.2% over the same period last year. The growth rate was unchanged from last December. According to the category, the retail sales of clothing, shoes, hats, knitwear, cosmetics and gold and silver jewelry increased by 1.8%, 8.9% and 4.4%, respectively. The growth rate of retail sales of cosmetics and gold and silver jewelry was improved compared with that in December. The growth rate of clothing retail sales was weak, reflecting the high pressure of short-term growth in the same period.

Last Friday, when Premier Li Keqiang answered the reporter's questions about this year's more large-scale tax reduction and tariff reduction measures after the closing of the two session of the National People's Congress, it was clear that the value-added tax will be lowered in April 1st and the social security rate will be lowered in May 1st. It is expected that the demand for the performance of the textile sector and the optional consumption will be far-reaching. On the one hand, the profits of the listed companies will be thickened. On the other hand, reducing taxes and lowering fees will be conducive to the stimulation of terminal consumption in the general direction.

In the market continues to warm up the trend, the research report that the textile and garment industry has the opportunity to fill up, with the 2018 high performance base digestion, plate leading company valuation cost-effective gradually highlights.

At present, there are two main lines of interest: (1) mid term: low valuation and long term prospects, some of which have been included in the MSCI index (long term impact on Industry Valuation), such as Hai Lan's home, Semir dress, YOUNGOR,

(2) short term: it is recommended to pay close attention to a company with good quarterly expectations, such as the park, Antarctica, bivin, and di Su fashion.

In addition, we are optimistic about the good financial quality, steady growth and the reform of state-owned enterprises.