Textile And Garment Industry Weekly: March Above Quota Retail Sales Growth

Textile and garment sector quotes: last week, the SW textile and garment sector rose 0.48%, and Shanghai and Shenzhen 300 rose 3.31%.

At present, SW textile and clothing PE is 22.49 times, slightly higher than the average of nearly 1 years.

The top 3 textile and apparel companies this week were Sanfo outdoor (+20.18%), +18.56% (*ST) and *ST +16.32% (middle velvet). The top 3 decline were: Pacific bird (-6.24%) and global win (-6.18%).

Important news in the industry: 1., the total volume of the total social sector increased by 8.3% in the first quarter. In March, the growth rate of the textile industry above the quota rose; in 2.3, the industrial added value increased by 8.5%; the textile industry increased by 9%; and 3. third cotton planting intentions survey:

The intention of planting cotton has dropped and the decline has been slightly reduced; 4., China will buy a large quantity of cotton, which has sharply reduced the state reserve cotton stocks. 5. the US apparel industry is in a predicament: nearly 6000 stores have been closed in 2019.

Overseas companies tracking: 1. Lining first quarter sales of electricity suppliers rose 40%; 2. weeks of Tai Fu financial year fourth quarter sales in mainland China rose 9%; 3.J.Crew consider splitting up the denim brand Madewell listing.

The company's important announcement: [Semir costumes] disclosure of investor relations activity record; "three lane allocations" planning assets reorganization suspension; [Baron east] continued to carry out cotton futures business in 2019; [Weixing shares] disclosure of investor relations activity record; [SW textile and apparel annual report this week]; [SW textile and apparel first quarter report].

Key news commenting: in the first quarter, the total volume of the total business increased by 8.3% compared with the same period last year. In March, the growth rate of the above quota textile clothing picked up: Q1's zero growth rate was 8.3%, the growth rate was slightly higher than that of last year's Q4 8.24%, and the Q1 above the quota deducted 7.6% of the oil and motor vehicles, which was 7.3% warmer than that of last year's Q4.

Above quota textile and garment growth picked up.

In April, we gradually pushed forward the implementation plan of consumption upgrading, expecting Q2 retail to continue to warm up.

In the fourth quarter of Zhou Dafu, sales in the same store in mainland China rose by 9%: in the first quarter of 2019, the sales volume of Zhou Dafu mainland China increased by 24%, while that of the same store increased by 9%.

Among them, the sales of jewellery stores in mainland China increased by 12%, and the average selling price of gold products in mainland China increased by nearly 20% over the same period last year, pushing the growth of gold products in the same store.

Gold jewelry is one of the high-end consumer goods. Zhou Dafu's high growth rate in mainland China indicates that China's high-end consumption has already recovered in the first quarter. It is suggested that we should pay attention to the consumption trend of high-end women's clothing in China.

Investment suggestion: in the first quarter, the social retail sales growth picked up compared with the fourth quarter of last year. The above quota eliminated the growth of retail sales of oil vehicles, and China's consumption showed a steady and upward trend.

In March, the retail sales of textile products above the quota rose faster.

Since the two quarter, the lower base and the gradual implementation of consumer policies are expected to boost retail sales growth.

We suggest that we should pay close attention to the following main lines of investment: (1) Semir clothing, a printing and dyeing leading FAO share, which is guaranteed by performance; (2) at present, the valuation is at a low level, and domestic textile enterprises whose performance is expected to grow steadily will be living in the market; (3) benefit from the fast growing supply chain platform enterprises, Antarctic electricity providers.

Risk warning: the 1. part of the industry continues to slump, clothing sales are not up to expectations; 2., the decline in risk of listed companies; 3., the target assets of mergers and acquisitions are not up to the expected risk, the risk of new business.