Domestic Apparel Retail Growth Is At A High Level.

　　 At present, the fundamentals of the garment industry are still in the boom period, and the key drivers of the industry are as follows:

　　 1, production enterprises: annual export growth is expected to exceed market expectations.

(1) export growth has returned to a relatively high historical level. According to the General Administration of customs data, China's textile and garment export growth rate hit a new high this year in June. Among them, before 2010, China's textile and apparel exports totaled 89 billion 800 million US dollars (2008M1-6 and 2009M1-6 exports were 81 billion 700 million and 72 billion 800 million respectively), an increase of 23.32% over the same period last year. Of them, textile exports were 35 billion 656 million yuan, up 32.31% over the same period last year, and clothing exports were 1 billion 602 million US dollars, up 16.02% over the same period last year.

Considering (1) clothing and clothing in the United States Accessories Retail sales growth is still at a high level, and the year-on-year level of inventory continues to decline. Replenishment Demand, (2) and eurozone retail data still show positive growth in the European debt crisis. We expect: Although the export volume of textiles and clothing in 2010 is higher and lower than the previous year due to the base number, the overall growth rate is still optimistic. The growth rate is expected to exceed 10% of the market expectations in the early stage, about 15% in the whole year.

(2) raw material prices began to fall. In the first half of 2010, exports showed high growth expectations. For the domestic market The growth rate is at a high level, and most production enterprises are full of orders, especially in the 2 quarter. Even considering the high price of raw materials, enterprises are also highly capable of conducting price transmission, and the profitability of enterprises is maintained at a high level. From the perspective of the growth of business performance, both the whole industry and the growth rate of listed companies remain at a high level. As exports and domestic sales grew at a high level in June, enterprises were in good order at the moment. We believe that the profits of production enterprises in the three quarter are still relatively optimistic. As for the decline of raw material prices, we are judging more from supply increase and new cotton coming soon. Because production enterprises always reserve some stock of raw materials, profits may be negatively affected by enterprises whose bargaining power is not very strong.

　　 2, domestic apparel retail growth is at a high level.

From consumer confidence index, consumer satisfaction index, consumer expectations index and other indicators: 5, June showed an upward trend, a good consumer confidence index for clothing terminal retail growth at a high level to lay a good foundation.

The growth rate of retail sales of clothing, shoes and hats and knitted goods above the national quota indicates that the growth rate in 3-5 months is 25.9%, 22.03% and 21.92% respectively, and the growth rate in June has been raised to 26.6%, indicating that the sales of summer wear are still good and the growth rate is at a relatively high level.

From the growth of clothing sales and sales volume in key large-scale department stores, the growth rate of retail sales in 3-5 months is 20.52%, 21.3% and 19.29% respectively, and the absolute growth rate is still at a high level.

In addition, the current consumer confidence index and terminal retail data are 9 and October, which laid a good foundation for retail sales. We hold a relatively optimistic attitude towards the 2011 spring and summer ordering meeting held in 9 and October.

Based on the above reasons, based on the fundamentals of listed companies, taking into account the expected performance, valuation, issuance and other expectations, it is recommended to pay attention to the August wedding birds, Weixing shares, Lu Tai A and Huafu color spinning.

　　 Good news birds (002154):1, the lowest valuation in the current brand clothing listed companies, and the company relies on its business series, steady growth in performance, no performance reduction expectations; 2, the first half of July 30th announced the first half of the report earnings growth of 42.11%, exceeding the market expectations; 3, executives have already exercised power, large shareholders restricted shares will be lifted, and all shareholders' interests will be consistent.