Orient Securities: Slower Growth In Domestic Apparel Sales In October

Market review: this week, the market volatility declined, the Shanghai Composite Index closed at 2481.08 points, down 1.87%, Shenzhen Shenzhen index 10418.93 points, down 2.62%.

The textile and garment sector fell 0.96% this week, with the textile sector falling by 0.97%, and the clothing sector by 0.96%.

In the weaker market, the companies we covered this week followed the narrow swing of the market, and the brand clothing enterprises showed a better defense function.

Among them, Semir and apparel rose by 2%, and only 3% of Weixing shares this week.

Industry information: (1) 1-10. The total retail sales of clothing, shoes and hats and needle textiles in China's domestic market reached 620 billion yuan in 1-10 months; (2). The export growth rate of Chinese textile products continued to slow down to 22.79% in June. (3).

Company dynamics: (1). Seven wolves: fixed increase will speed up channel expansion and structural optimization; brand fashion: (1) 2012. Rebecca fashion trend and the latest design conference held in Beijing;

Investment perspective: in the current market turmoil, we need to guard against systemic risks.

We maintain a firm and optimistic view of the brand clothing enterprises in the medium and long term, especially the brand clothing enterprises with good fundamentals and high growth. On the one hand, they have better defensiveness, and at the same time, they have better elasticity when the market stabilizes or rebounded.

We recommend for a long time that the key varieties with good growth and good fundamentals will continue to be held (nine herdmen, fuanna, seven wolves, happy birds, Pathfinder, search for special, Mei Bang dress, Meng Jie home textiles, etc.)