Foreign Investment Continues To Be Optimistic About Textile And Garment Sector Proposal To Layout Four High Boom Categories

Recently, the policy of favorable textile and garment sector has been introduced continuously. The State Council issued the "outline for the construction of a sports power" and put forward the idea of building a modern socialist sports power by 2050. In September 10th, the foreign exchange administration abolished the limitation of investment quota for QFII and RQFII.

In fact, foreign investment has always preferred the textile and garment sector. Since May 2018, when MSCI began to be included in A shares, as of September 12, 2019, the total net inflow of north capital has reached 802 billion 200 million yuan, and the textile and garment sector's capital holdings in the north have increased by 1 billion 300 million yuan to 2 billion 800 million yuan. Guotai Junan Securities said that textile and apparel stocks had the characteristics of underestimation, high dividends, high ROE and rapid growth. With the continuous improvement of policy opening, it is expected that the proportion of foreign ownership of textile and garment sector will further improve in the future. With the introduction of the "outline for the construction of a sports power", the improvement of the national fitness facilities and the extensive development of the national fitness program, the demand for sportswear and footwear will continue to grow. It is estimated that the composite growth rate of the sports apparel market in China in the 2019-2023 years will be 10% left and right, and the sports apparel industry will usher in a long-term good trend.

Orient Securities pointed out that sports apparel, cosmetics, children's clothing, gold jewelry and other four high prosperity category will become the next stage of industrial draught, leading companies will be relatively strong stocks. In addition, in the trend of continued market warming, other white horse stocks in the industry at the bottom of history will also become a highlight of attracting incremental funding. Three main lines are recommended: medium and short term, promising fast-growing varieties of fast-growing segments, such as Lining, Peltier, Antarctica, Zhou Dasheng, Bosideng, Be Meleven, Anta sports, and pill fair shares; long recommended low value and long term prospects for white horse faucets, such as Lao Fengxiang, Hai Lan's home, Semir clothing, Song Li Si, YOUNGOR, etc.

Haitong Securities said that as China's financial market opened wider to the outside world and the international stock index continued to be included in the A share, the attention of the international market would be raised, or it would bring incremental capital. It is suggested that we should focus on the three stock indexes and the basic textile and clothing standards of Hai Lan home, Semir clothing and Antarctic electricity supplier.