Textile And Garment Industry: Overseas Orders Transferred To Domestic + Sales Peak Season And Cold Winter Coming

According to Tencent, the overseas epidemic situation is still grim, and textile industries in India, Sri Lanka and other countries have been hit hard and delivery is difficult. In order to ensure continuous supply, European and American retailers transferred many orders originally produced in India to China. Among the orders transferred from India to China, the orders for towels, bed sheets and other products are relatively large. According to the estimated data, the current order quantity has been arranged to may 2021.

Key investment points:

In recent years, a large number of textile orders were transferred from India to China. China is the world's largest textile producer and exporter. The recent epidemic situation in India is serious. Since September, many large-scale export-oriented textile enterprises in India have transferred many orders originally produced in India to China for production due to the failure to ensure normal delivery due to the epidemic situation. From the category point of view, towel, bed sheet and other products orders are large. In addition, according to the export data released by the General Administration of customs, the export volume of China's textile yarn, fabrics and products reached 13.352 billion US dollars in September, a year-on-year increase of 34.69%, realizing a high growth for several consecutive months. The recent textile orders have been transferred from abroad to China, which brings opportunities for China's textile enterprises to do export. The export of textiles in the next few months is expected to maintain the current hot phenomenon.

The domestic epidemic situation is well controlled, and the "golden nine silver ten" is coming, and the industry has entered the traditional sales peak season. Under the background of cold winter, Q4 textile and clothing demand is expected to grow rapidly. The domestic epidemic situation is well controlled, and the policy of superimposed promotion fee makes the sales of textile and clothing recover well. According to the data of the National Bureau of statistics, the year-on-year growth rate of clothing, shoes, hats, needles and textiles of Enterprises above the quota has recovered from - 34.8% in March to 4.2% in August. At present, the industry has entered the traditional "golden nine silver ten" sales peak season. In addition to the La Nina phenomenon, many places in China, including Henan, Shaanxi, Shanxi, Sichuan, Gansu, Heilongjiang, etc., have snowfall in the first ten days of October. This year, China will probably Usher in a cold winter, while the demand for clothing and home textiles with cold resistance properties such as down jacket, quilt core and pillow core, as well as the upstream cotton and hemp raw materials demand It is expected to usher in rapid growth in Q4.

Investment suggestions: in terms of export, the foreign epidemic situation has seriously affected the supply of goods. Recently, textile orders from India and other countries have been transferred to China. Meanwhile, China's textile exports have been increasing continuously in recent months, and the booming phenomenon of export sales in the coming months is expected to continue. In terms of domestic sales, the domestic epidemic situation is properly controlled, and textile and clothing sales ushered in the golden season of gold, silver, and ten The arrival of the cold winter under the Na phenomenon stimulates the demand for textile and clothing products such as cotton and linen, down jacket, quilt core and pillow core. We believe that the textile and garment industry Q4 is expected to usher in rapid growth, so it is proposed to upgrade the industry rating to "stronger than the market". At the same time, it is suggested to pay attention to high-quality standards such as textile, down jacket and home textile.