Analysis Of Performance Differentiation Of Textile And Apparel Listed Companies

Up to now, most of

The performance of listed companies has been disclosed.

The overall performance is slightly lower than expected for the key companies in the industry that have already released their performance.

Specifically from the sub sectors, outdoors, women's wear and some brand men's clothing companies outperformed expectations, men's clothing companies overall performance in line with expectations; casual wear and home textiles growth slowed down performance is lower than expected.

In addition, orders for export manufacturing companies are still poor in the first quarter, although they have improved compared with the fourth quarter of last year, but the quarterly net profit growth has dropped sharply compared with the same period last year, and the performance is lower than expected.

We believe that the formation of the current quarterly sub sectors

There are four main factors.

First, the different development stages of each sub industry's own life cycle determine the external environment of the company's development.

For outdoor products and middle and high-end men and women's clothing, they are still in the initial stage and growth stage of the industry. The competition pressure in the industry is relatively small, the scale of revenue is growing rapidly, coupled with the company's own level of cost control, accurate brand layout, planning ideas and sound channel development capabilities, it is also the support for the company's performance in high-speed expansion.

Second, the pformation from wholesaler to retailer.

Through the study of the existing Brand Company's operation mode and development history, we think that the final winners will be those who focus on increasing the added value and premium ability of the brand to "do retail" instead of simply selling the "wholesale" Brand Company through the competitive price reduction. At present, the domestic high-end men and women's clothing companies such as the seven wolves (002029), the wedding birds (002154), and the long group will belong to the former.

Third, the level of inventory in various sub sectors is also one of the main factors that affect current performance and determine future growth.

We believe that the high inventory of channels is the overdraft of the future capacity of the channel, which directly led to the quarterly performance of home textile companies lower than expected, which also caused the company to be in the process of digestion channel inventory in 2012.

In line with home textiles, the overall distribution level of men's clothing industry is stable and healthy, with an average annual growth rate of 20% to 30%, making channel inventory always maintain a healthy and sustainable development trend.

Finally, in the first quarter of this year, rainy days are more frequent, the new year is earlier, and the overall economic environment is weak.

This has affected the company's performance in the first quarter.

As for the future investment strategy, the terminal sales in March showed signs of recovery. We expect that the trend of recovery of clothing consumption will continue in the future under the promotion of factors such as consumption promotion month.

At present, the valuation of the industry is at a historical low. With the resurgence of terminal sales, the investment value of garment enterprises will gradually appear in the future.

In terms of molecular industry, men's clothing is still the most robust growth of performance. At present, the order will grow at a high speed and the annual performance can be expected.