This Year, The Two Tier Market Of Textile Manufacturing Sector Performs Better.

< p > this year, < a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > manufacturing sector, the two tier market performs better.

Textile manufacturing increased by 9.6%, while < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > Home Textiles for -6.98%, because of the division of performance, cotton spinning first quarter results, and clothing home textile performance has declined.

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< p > the growth rate of domestic sales of garment textiles has declined significantly.

In the 1-5 month of this year, the total retail sales of above quota clothing < a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > hat knitted textile category increased by 11.1%, representing a 5.1 percentage point decline over the same period last year.

Net profit growth attributable to the parent company slowed down across the board. In the first quarter, the net profit growth of casual wear was -28.88%, the net profit growth rate of home textiles was -3.64%, the net profit growth of men's clothing was -1.48%, and the net profit of women's clothing increased by 37.48%, but it still slowed down 12.6 percentage points compared with the same period last year.

We forecast that the net profit growth rate of garment and home textile enterprises in the two quarter has no obvious improvement trend.

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< p > cotton textile industry is getting better.

1-4 months cotton textile and dyeing finishing industry's main business revenue growth was 15.67%, total profit growth rate was 22.32%, respectively, compared with the same period last year increased by 4.7 and 27 percentage points.

In the first quarter of this year, the growth rate of the listed companies in cotton textile industry reached 8.38%, an increase of 22.61 percentage points over the first quarter of last year, and a 49.09% increase in net profit and a 116.7 percentage point increase over the first quarter of last year. It is the best performance in the fine textile industry. < /p >

< p > the narrowing of cotton prices between inside and outside, and the weak recovery of exports promote the cotton textile enterprises to get better results.

Domestic and foreign cotton prices determine the profitability of cotton spinning enterprises.

The price of outer cotton determines the growth of enterprise income, and the difference between inside and outside cotton price determines the gross profit margin of enterprises.

We predict that the cotton price range will be 19000-20500 yuan / ton in 2013.

The narrowing of domestic and foreign cotton prices in 2013 mainly depends on the increase of cotton prices.

If cotton direct subsidy policy is introduced next year, it will further benefit the cotton textile industry.

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< p > > a target= "_blank" href= "//www.sjfzxm.com/" > brand clothing /a > growth mode pformation takes time, the industry is hard to see in the second half of the year.

China's clothing brand enterprises have experienced extensive growth in the first more than 10 years. Now they are faced with the path of refinement and become retailers that can meet the needs of consumers and respond quickly to the market.

However, from the valuation point of view, the price earnings ratio of apparel home textiles is 15 times, the lowest in 09 years.

In the second half of the year, the probability of excess returns is small, but long-term investors can be concerned.

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< p > Investment Strategy: focus on the cotton spinning leading edge.

The performance of cotton spinning enterprises has bottomed out last year, and the narrowing of the difference between the inside and outside cotton prices will be beneficial to the improvement of the profits of the enterprises.

It is suggested that we should pay attention to the leading companies of cotton textile enterprises, such as Lu Tai A and Baron East.

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