Clothing And Textile: Textile And Garment Sector Rose 1.59%, Recommended 9 Shares.

Last week, the Shanghai Composite Index rose 0.78%, while the textile and garment sector rose 1.59%, of which the textile sector rose 1.6% and the clothing sector rose 1.58%. Last week, the leading companies in the sector were Zhejiang rich, Busen shares, Shandong Ruyi, Vico essence, Yeco Technology The increase was 15.2%, 13.35%, 12.98%, 9.11% and 7.43% respectively. From the beginning of September 26th to the September 26th, the Shanghai Composite Index rose 10.95%, and the textile and garment sector rose by 25.99%, of which the textile sector rose 29.15% and the clothing sector rose by 22.86%.

Industry data and major company tracking 1) 1-8 month textile and garment industry income and profit situation: Textile owner battalion income increased 8.3% year-on-year; total profit increased 8.9% year-on-year; main activity profit increased 8.8%; textile and clothing business owners' business revenue increased 9.6%; profits increased 14.6 year-on-year; main activity profit increased 15.9% over the same period. 2) raw material data: last week, the average price of the 328 cotton index in the last week was 16300 yuan / ton, the average price of Zhou Chengjiao decreased by 3.37%, and the total price dropped by 16.56% from the beginning of this week. The weekly Cotlook:A price index dropped 4.48% on the external cotton index, and has fallen by 20.55% since the beginning of this year. Our calculation shows that the difference between inside and outside cotton price is about 3275 yuan / ton. 3) card slave Road: Guangzhou Taigu Hui 01MEN high-end brand collects buyer's shop at this stage is trial run period, currently gathered more than 100 brands, mainly the international two or three line designer brand, in the next five years, the company plans to open 30 stores. The measure of area About 500 -1500, mainly distributed in the first and second tier cities; Hengyang high-end boutique stores may open until April 2015. 4) Mei Xinda: it is estimated that the profit of the three quarterly report is 300-1000 yuan. At present, the printing and dyeing business is doing well and the profit is relatively stable, while the textile business (ODA textile) expects that the losses in 2014 will continue to expand.

The industry policy dynamics and announcement of listed companies 1) the total import tariff quota of wool in 2015 was 287 thousand tons; the gross import tariff quota of gross wool was 80 thousand tons; 2) the China clothing association: the market demand for professional wear exceeds 300 billion; 3) Uniqlo will expand the children's wear series of 60% children's shops, 4) La Natsu Bell abandoned A shares to Hong Kong listing; 5) the first half net profit of 97 million 800 thousand in the first half of the year was 97 million 800 thousand, with the exception of 19.5%.

At this point, the fundamentals of the industry have not yet been significantly improved: there are many participants in the domestic textile and garment enterprises, and the market concentration is at a low level. Under the background of the economic downturn, product demand reduction, raw material and labor costs and industry competition are intensifying. Industry companies are faced with difficult adjustment and transformation. In the process, companies that tap their potential, change their business models, and have higher profitability are expected to improve market share and achieve long-term development. We are optimistic about the investment opportunities brought by the upgrading of leading companies' market share, and M & A will become a catalyst for share price.

Key recommendations: 1) quality brand clothing company, Hai Lan home, Semir costumes and Pathfinder, etc.; 2) subdivision of the basic layout of the block, the performance improvement of the Luo family textile and fuanna; and 3) with the positive anticipation of the merger and acquisition of the Lanzi stock, Jia Linjie, bank of China and Luo Lai. Home textiles And so on.

Risk indicates that domestic terminal consumption is low and the risk of clothing consumption reduction is decreasing. The fluctuation of external demand affects the risk of export.