March 2014 Textile And Garment Industry Monthly Report

< p > February, the industry slightly outperformed the market.

In February, the market rebounded after a rebound.

Shanghai Composite Index rose 1.14%, Shenzhen index and Shanghai and Shenzhen 300 fell 2.73% and 1.07% respectively.

Shen Wan < a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > < a target= "_blank" href= "//www.sjfzxm.com/" > dress > plate > overall rise 2.92%, slightly win the market.

Textile manufacturing and home textiles increased by 3.77% and 2.09% respectively.

All sub sectors of textile and clothing have gone up, of which printing and dyeing industry rose the largest, rising by 18.13%.

Accessories industry rose the smallest, up 0.43%.

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< p > industry operation: in February, domestic cotton prices continued to rise, and the international cotton price uptrend slowed down, and the difference between cotton prices inside and outside was narrowed.

The sharp fluctuations in the growth rate of textile and clothing exports in the first 2 months were mainly due to the high Spring Festival factor and the high base in the same period last year.

We believe that textile and garment exports will continue to recover in 2014, mainly due to the obvious signs of recovery in the US market, the gradual recovery of the European market and the acceleration of exports to ASEAN.

Retail sales of clothing remain weak.

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< p > 2013 annual report and performance Bulletin: as of March 8th, the SW textile and garment industry had 36 "a href=" //www.sjfzxm.com/news/index_c.asp > listed companies < /a > disclosed the 2013 performance bulletin, and 8 listed companies released the 2013 annual report.

Judging from the listed companies that have published the 2013 performance bulletin and annual report, the leading companies in textile manufacturing industry are relatively better. Most of the apparel home textile companies are below expected performance, and the performance of men's wear listed companies is much larger than expected.

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< p > March investment strategy: textile manufacturing industry: maintain prudent recommendation rating.

Although the fluctuation of export growth in February was larger than that in the same period last year, we still maintained a relatively cautious and optimistic attitude towards exports in 2014.

In 2014, the possibility of export as a whole was better, and the export growth rate returned to around 10% was a big probability event.

The recent depreciation of the RMB exchange rate against the US dollar will, to a certain extent, alleviate the pressure on the enterprises with higher export proportion. The plate may be affected by this influence and the popularity has been enhanced.

Maintain prudent recommendation ratings for the industry.

In terms of stocks, we recommend cotton textile leading A, Huafu color spinning and Baron East.

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< p > clothing home textile industry: maintain prudent recommendation rating.

From the companies that have published the 2013 performance bulletin and annual report, most companies are far below expected performance.

Early market reflects that there may be overshoot and rebound in short-term industries.

From the basic point of view, terminal retail is still relatively low, and the industry still lacks the trend market. In the short term, it may still be dominated by thematic investment opportunities, such as OTO, state-owned enterprise reform and so on.

At present, the leading enterprises in the OTO industry include the Pathfinder, the a target= "_blank" href= "//www.sjfzxm.com/", the clothing "/a", the fuanna, the Luo Lai textile and so on.

The main themes of the state-owned textile and garment sector reform include leading shares, Shenda shares, Shanghai Sanmao, Jihua Group, and China Textile shares.

In the medium and long term, we suggest that we should closely follow the investment point of sub industry inflection point.

We believe that casual clothing and home textiles in the first half of 2014 will be the first to finish inventory and usher in the turning point.

In terms of stocks, Semir clothing, Mei Bang dress, Luo Lai home textile, fuanna and Pathfinder are recommended in the medium and long term.

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