Last week, the textile and apparel sector rose by 0.17 percentage points, while the Shanghai and Shenzhen 300 Index fell by 0.57 percentage points over the same period. The textile and apparel sector outperformed the broader market by 0.74 percentage points.
Data tracking
Macro data: From January to March 2016, the textile industry achieved 876.65 billion yuan in main business revenue, an increase of 4.78% year-on-year, and the growth rate increased by 2.02 percentage points from the same period of the previous year. It was improved in stages; the total profit was 42.56 billion yuan, a year-on-year increase of 6.82 %, the growth rate increased by 2.14 percentage points from the same period last year.
Price Index: The domestic sales price index of Dieshiqiao Home Textiles was 92.85 on April 29, an increase of 0.03 from last week; the Keqiao Textile Price Index was 104.30 on May 2, an increase of 0.13 from last week; Shengze silk The price index was 100.88 on April 29, a decrease of 0.03 from last week; the price index of Haining leather was 98.02 on April 15, which was an increase of 1.34 from last week.
As of April 29, the domestic 328-level spot closed at RMB 12,372/ton, an increase of 0.02% from last week.
Main news & announcement summary
1) The national standard of "Outdoor Sportswear Jackets" was released and will be implemented in November; 2) my country in March 2016 import Cotton yarn 190,500 tons; 3) my country's cotton cloth in March 2016 Exit The volume increased by 71.56% year-on-year; 4) China's second quarter textile and apparel exports are not optimistic; 5) 19 companies including Hailan Home, Fuana, and Pathfinder released their 2015 annual reports and 2016 first quarter reports.
Industry View
In recent years, the weather has been abnormal, and the growth of domestic textile and clothing has been slow. The domestic textile and apparel industry is in a period of adjustment and transformation, and the strong will remain strong. Some companies have been forced to or take the initiative to transform. Companies that are determined and well prepared for transformation may gain greater benefits in new areas. Our investment logic: brand apparel is in adjustment and upgrade: brand apparel is in the perfect supply chain, and the industry is in the stage of adjustment and upgrade. The degree of market concentration is getting higher and higher, the superior will survive the inferior, and the strong will remain strong. Prosperity sub-industry: After several years of internal adjustments, continuous innovation and segmentation, the sports industry meets the different needs of consumers in sports; the increase in residents' health awareness and the guidance of national sports industry policies have brought about the overall recovery of the sports industry ; Cross-border E-commerce, The e-commerce industry directly faces consumers and meets consumers' demand for product cost-effectiveness. The advantages of my country's textile and garment enterprises in the production scale and export volume in the global market are conducive to the rapid expansion of cross-border export enterprises. The adjustment of cross-border import taxes has little effect on the trend of cross-border business. Transformation enterprises: traditional enterprises graft the e-commerce industry to create new economic forms, and only new profit models can stand out in new fields. In the near future, we continue to recommend: Duofai, Semir Apparel, Hailan Home, Cross-border Link, Antarctic E-commerce, Hangmin shares, George White.
Risk warning: the risk of raw material price fluctuations; systemic risk.
