Textile And Apparel Industry Weekly: Focus On High Quality Clothing Brands And Focus On Overseas Layout Of Textile Manufacturing Enterprises

Last week's market review

Last week, the textile and garment sector rose 5.57%, the Shanghai and Shenzhen 300 index rose 6.52%, and the industry lost 0.95 percentage points in the Shanghai and Shenzhen 300 index.

From the rise and fall, last week, the textile and garment sector ranked seventeenth in 29 CITIC first level industries.

From the perspective of molecular plates, the textile manufacturing sector rose by 5.54%, and the brand clothing sector rose 5.61%, or slightly higher than that of textile manufacturing.

Last week, the top stocks included +33.10%, +22.48%, +18.90%, +13.70% and +12.90%.

The top five stocks in the sector are: -4.08%, -1.82%, Shanghai Sanmao (-1.53%), Busen (-0.95%), and Xinlong Holdings (-0.44%).

This week's point of view

In the past six months, under the influence of the consumption environment, the consumption of clothing and home textiles has been under pressure. However, some of the leading industries have competitive advantages in products and channels.

The annual report period has arrived, and we suggest that we pay attention to the best performance of last year's performance, which is expected to maintain the growth of this year's performance: the Semir clothing, the singer and the security fashion.

Semir Costumes: Barbara brand occupies the first place in the children's clothing industry, and the business of casual wear has steadily increased.

We will expand the field of e-commerce and actively arrange shopping center channels to cater for the trend of young people.

It is expected that operating income will reach 15 billion 716 million yuan in 2018, an increase of 30.68% over the same period last year, and a net profit of 1 billion 693 million yuan, an increase of 48.74% over the same period last year.

Geus: focus on creating high fashion group, multi brand layout, brand development, marketing promotion, product planning, supply chain management and other aspects of synergy, performance continues to improve.

An Zheng fashion: the main brand nine posture steadily grows, gradually cultivates new brands.

The acquisition of 70% stake in ritual information is expected to help the company layout children's clothing and maternal and child industries, enhance the operation capacity of the electricity supplier, while thickening performance.

In addition, the textile and garment industry is a labor-intensive industry. Currently, domestic textile manufacturing enterprises are affected by the low cost of Southeast Asia and other places, and some enterprises are actively promoting the pfer of production capacity.

We believe that setting up factories in Southeast Asia and other Southeast Asian countries is expected to bring the advantages of Taxation, labor force and customer import duties to textile enterprises, which will help reduce international logistics costs, reduce international trade barriers, enhance cost competitiveness, and enhance competitiveness in the global market.

The recommended order is more stable, and actively expand Vietnam's capacity, and its performance is expected to continue to improve: Jiansheng group and Huafu fashion.

Kin Sheng group: abundant orders, excellent customer resources.

Vietnam is planning to build a production base for cotton socks and seamless underwear, and its performance is expected to continue to expand with the further expansion of capacity.

Net profit in 2018 is expected to increase by 50% to 90% over the same period last year.

Huafu fashion: deep ploughing Xinjiang, enjoying the advantages of resources, location, policy and so on.

Promoting the layout of Vietnam's production capacity will help enhance the competitiveness of our global customers.

It is expected that operating income will reach 14 billion 306 million yuan in 2018, an increase of 13.57% over the same period last year, and a net profit of 780 million yuan, an increase of 15.14% over the same period last year.

Risk warning

The change of economic environment has led to the low consumption of clothing, the fluctuation of exchange rate, the fluctuation of cotton prices, and the development of new brands is not as good as expected.