The Yield Of Minsheng Textile And Garment Industry Index Was - 3.21%,

The portfolio in July was significantly changed from that in June, with a significant increase in the weight of Huafu, joining Lutai and excluding Blum and Hangmin. Main reasons: The market experienced great fluctuations in June, and most individual stocks in the sector fell by more than 10%. The relative return of our portfolio in June was higher than that in May, mainly due to the outstanding performance of Huafu, which still maintained a positive return in a single month. The negative return of the portfolio was mainly due to the drag of Hangmin Shares (600987, Guba). When the market panics, the trend of concept and theme stocks will fluctuate greatly. Excluding the main brands of Blum, such as Huafu and Lutai, the elasticity is higher. Looking ahead to July, adjacent to the mid report quarter, we believe that the performance trend of brand stocks is generally downward, with little probability of exceeding expectations. We still focus on the allocation of cotton textile stocks, and pay more attention to trend investment opportunities. The significant increase in the proportion of Huafu portfolio is mainly because we are optimistic about the trend narrowing of cotton price difference, Huafu has the largest elasticity and strong enthusiasm.

Industry News of the Week

(1) "Exceptions" appeared in the "Made in China" trend at the moment of the spiral staircase of the Moscow airport. Fast fashion seized the market in every spacious and bright flagship store in Chengdu, as well as the downward movement since the second half of last year Clothes & Accessories The nightmare of closing the store, the clothing industry has experienced many ups and downs in just six months this year. (2) Beijing's retail property market is in active demand, and high-quality retail property in the core business district is still the first choice for the expansion of international well-known brands, so the rent in the core business district still has room to rise. (3) Since this year, Guangdong's foreign trade data has been on a "roller coaster". After the first four months of "soaring", it has continued to decline. In June, the year-on-year growth rate of imports and exports was 4.5% negative. This situation is not only due to the official crackdown on fake trade, but also due to the deterioration of the export situation. Many small and medium-sized enterprises have responded that orders have shrunk significantly due to sluggish demand. (4) Faced with the shrinking international market, the domestic men's wear enterprises turned to expand the domestic market. However, due to the high rent of stores and the poor stability of employees, there are many constraints clothing An important reason for brand development. (5) Clothing enterprises have tried multi brand strategy to expand into multiple market segments. Industry observers believe that the multi brand strategy has both advantages and disadvantages, and the specific implementation is much more complicated than the plan. (6) At present, spin The overall operation of the industry was affected by the international financial crisis, the export situation was severe, and the pressure of transformation increased. If China's textile industry wants to "go global", it must choose a good market for development. Among many destinations, ASEAN is the most attractive and operable market.

Trend in the past week: 0.55 percentage points lower than the CSI 300 Index, ranking eighth from the bottom in terms of yield

In the past week, the yield of Minsheng Textile and Garment Industry Index was - 3.21%, 0.55 percentage points lower than the CSI 300 Index (- 2.66%), and ranked the eighth lowest among the 29 first level industry indexes. Among them, the yield of textile and clothing subsectors is -3.46% and -2.91% respectively. In the past week, Minsheng textile and clothing stock portfolio (Huafu Sefang (002042, Guba), Lutai A) rose or fell by - 7.01%, 4.35 percentage points lower than Shanghai and Shenzhen 300 (- 2.66%), and 3.80 percentage points lower than Minsheng textile and clothing index (- 3.21%). Among them, the rise and fall of individual stocks were respectively Huafu Sefang - 11.70% and Lutai A - 4.62%.