Export Performance Is Good &Nbsp; Recovery Process Is Still Slow.

In April, the total export volume of textile and clothing was 14 billion 547 million US dollars, up by 16.44% over the same period last year.

Categorization,

Comment

Export performance was good in April, and the recovery process was still slow.

1-4 months

The domestic demand market is growing strongly.

Regardless of the textile and clothing retail sales above the above quota, the retail sales of textiles and clothing have been restored to 07 years this year.

The consumption potential of the two or three tier cities has more room for development than that of the first tier cities.

Throughout the year, we believe that consumption of domestic demand will keep steady and steady.

Maintain the "neutral" rating of the industry.

From the perspective of plate performance, in the first 3 months, driven by the double export of domestic demand data and strong rebound in corporate profitability, the trend of the textile and garment sector is significantly ahead of the market.

Starting in April, although the government has issued a series of regulatory policies for the real estate industry, the pressure of tightening policy will continue in the future, and the market has obvious callbacks. However, due to the higher pre valuation, and the accumulation of risk factors in the second half of the year, the valuation premium of the block has dropped, so we continue to maintain the "neutral" investment rating of the industry.

In terms of investment proposals, we still emphasize the more important "bottom-up" selection of stocks for the textile and garment sector. Therefore, we recommend that companies that are wrongly killed in the current round of downturns are recommended, such as YOUNGOR, Weixing shares, voyage shares and relatively reliable performance.

Export performance is good in April, and the recovery process will continue slowly.

1-4 months, the total industry exports achieved two digit growth, indicating that the industry boom is indeed improving.

However, we believe that the sharp rebound in export data is more driven by the low base number.

We remain cautiously optimistic about the export situation of the whole industry. The export growth rate in the second half of this year will be lower than that in the first half of the year, and we will maintain the forecast of 5%-10% export growth in the whole year.

According to the unemployment rate data in the US, Europe and Japan, the US unemployment rate in April did not maintain the stable level of 9.7% in March, and it rose to a 9.9% warning line. The unemployment rate in the EU and Japan in March also showed an upward trend compared with February, indicating that the unemployment problem in developed countries is still serious, and the road to recovery is long, and external demand is still in the doldrums.

Although the renminbi has withstood many external pressures in the first 4 months, it has basically maintained stability.

But we have always thought that this year's appreciation of the renminbi will be an indisputable fact. The key question is only when and how much it will increase.

Once the appreciation rate exceeds 3% or even 5%, it will undoubtedly have a larger negative effect on the investment expectation of the textile and garment sector, and the pressure of plate callbacks will be more obvious.

The price of raw materials and the high labor cost have been the two major factors that have plagued the whole industry. We think that the increase in cost this year is also the fact that the enterprise can use various means to minimize the cost pressure.

Regardless of the textile and clothing retail sales above the above quota, the retail sales of textiles and clothing have been restored to 07 years this year.

The consumption potential of the two or three tier cities has more room for development than that of the first tier cities.

Throughout the year, we believe that consumption of domestic demand will keep steady and steady.

From the perspective of plate performance, in the first 3 months, driven by the double export of domestic demand data and strong rebound in corporate profitability, the trend of the textile and garment sector is significantly ahead of the market.

Starting in April, although the government has issued a series of regulatory policies for the real estate industry, the pressure of tightening policy will continue in the future, and the market has obvious callbacks. However, due to the higher pre valuation, and the accumulation of risk factors in the second half of the year, the plate premium has dropped somewhat, so we continue to maintain the "neutral" investment rating of the industry.