Bohai Securities: Upstream Textile Enterprises Begin To Improve Before The Downstream Garment Enterprises.

The export situation was stable after the first quarter of 13 P, and the export growth rate of textile raw materials was mostly between 10-20%. The export growth rate of clothing and footwear was slightly lower, basically around 10%, especially the growth rate of export volume and the growth rate of the amount of footwear were all reduced.

In 2013, the major retail enterprises in China, including a href= "//www.sjfzxm.com/news/index_c.asp" > clothing Commodity < /a >, grew by 5% year-on-year, the growth rate was 7.3 percentage points lower than that in 2012, and the retail sales of all kinds of clothing increased by 3.4% over the same period last year, and the growth rate was 1.4 percentage points higher than that in 2012.

In terms of price index, < a href= "//www.sjfzxm.com/news/index_c.asp" > textile industry < /a > PPI declined steadily, terminal price stable, clothing and clothing CPI at normal level.

The main business income of textile enterprises totaled 12.48% compared with the same period last year, and the total operating profit was 20.31% year-on-year.

< /p >

< p > < strong > market trend < /strong > < /p >

< p > January Shanghai Composite Index fell 3.92%, Shanghai and Shenzhen 300 index fell 5.48%, Shen Wan textile and garment industry fell 0.81%, shwan textile manufacturing industry index fell 0.27%, Shen Wan clothing textile industry index fell 1.37%.

By the end of 1, the valuation of textile and garment industry was 24.02 times, the value of textile manufacturing industry was 36.64 times, and the value of apparel textile industry was 19.08 times.

< /p >

< p > < strong > investment strategy < /strong > < /p >

< p > January < a href= "//www.sjfzxm.com/news/index_c.asp" > new listings < /a > diverted some of the funds, and the textile and garment industry also fell slightly.

In February, we will enter the announcement period of performance forecasts. From the industry data, the possibility of a large over expected company in the industry will not be too great, so we still need to be cautious in the whole.

< /p >

The good policy of < p > textile manufacturing industry is to start a pilot project in a straight way: in 2014, the Central Document No. 1 put forward the pilot work of "target price subsidy" for cotton in Xinjiang for the first time.

The market is expected to implement direct subsidy to cotton farmers in Xinjiang as a pilot area in the 2014/2015 cotton season, and the specific form of direct subsidy has yet to be determined.

Although the timetable is not clear, direct replacement instead of purchasing and storage is a relatively determined policy. The stability of cotton prices will further benefit the cotton enterprises to expand profits. We recommend Lu Tai A, Huafu color spinning and Baron East.

< /p >

< p > sales data of apparel home textile industry show that the growth rate of men's wear and footwear companies is at the bottom of the valley. Home textile companies are likely to grow steadily and other sub sectors will be differentiated.

After the Spring Festival, sales will be off season, and the terminal will be mainly discounted. We suggest that we should remain steady and pay attention to the performance forecast and the 14 year order meeting. We recommend a better way to explore the performance of the dream home textile and Internet strategy than the expected one. We also have long been optimistic about the cashmere industry since the 14 year's new capacity is put into operation.

< /p >