Guojin Securities: Research On Textile And Clothing Industry In The Fourth Quarter

　　 Industry strategy : We always believe that textile and clothing retail enterprises have short-term, medium and long-term investment value, and should adopt the buy and hold strategy:

It is understood that, Textile and clothing retail enterprises Orders in August and September will meet the market expectations, and the growth rate will reach or even slightly exceed the level of March and April;

The Mid Autumn Festival is connected with the National Day, and the current market situation is good. It is expected that consumption will continue to be brisk during the two festivals;

We believe that textile and clothing retail will maintain high speed in the future increase ;

We believe that textile and clothing retail enterprises have always been at the upper limit of the reasonable valuation that the market thought at that time, and should adopt the investment strategy of buying and holding. Falling is a buying opportunity, unless the company's business strategy does not conform to the market conditions at that time.

Since this year, textile and clothing retail enterprises have experienced a significant increase, with a dynamic P/E ratio of 30-45 times, and some of the enterprises with mediocre performance have also obtained overvalues. We believe that the textile and clothing retail sector will be differentiated in the future, and only those high-quality enterprises with sustained growth in performance can maintain the current valuation level;

Due to the impact of soaring raw materials, rising labor costs and appreciation, we believe that the gross profit margin of export and manufacturing textile enterprises will decline month on month, with only trading opportunities.