Textile And Garment Ordering Will Be Held In Succession, The Catalyst Is Not Yet Obvious.

Market review last week. Textile last week clothing Plate rose 1.71% (apparel home textiles rose 0.49%, textile manufacturing rose 3.35%), Shanghai and Shenzhen 300 rose 0.77%, Shanghai Composite Index rose 1.08%; driven by the textile sector, the entire textile and garment sector exceeded the market. From the weekly performance, we recommend the stocks in addition to the news birds fell slightly, other stocks are better.

Industry key data. Raw material prices, the current domestic 328 cotton spot price 18529 yuan / ton, basically the same as last week; 336 spot long staple cotton spot price 19750 yuan / ton, compared with last week, 0.5%; polyester staple fiber price 10350 yuan / ton, compared with last week rose 1.77%; viscose staple fiber 15350 yuan / ton, up from last week 1.32%; 40D light spandex silk lower price 43 thousand / ton, last week with the same level.

Last week's important announcement and recent follow up. Huafu color spinning semi annual report: Q2 sales increased 40%, relying on terminal development to bring the market share up, but the price dropped; the first half of the gross profit margin decreased mainly due to the large domestic and foreign cotton price difference, according to foreign cotton price quotes, domestic cotton prices as the cost; for the three quarter gross margin judgment: if cotton prices remain at the current level, gross margin is stable if Price Stable 20400 yuan / ton, based on the difference between domestic and foreign cotton prices, gross margin may also decline. Card slave Road: last autumn and winter sold out rate of 75%-78%, this spring and summer season sold out rate of 65%, but there are two months sales period; in previous years, the same store growth rate of 20%, this year's same store growth rate decreased compared with last year; in the first half of this year discount 30 percent off, overall activity is controllable; sales net profit rate 10%-15%. Fuanna: we expect M7 to grow by about 15%. The company's performance in the first half of the year is mainly based on the company's flower pattern, display improvement, and the terminal inventory pressure accumulated over the past two years.

We maintain the "prudent recommendation" rating for the industry. Since the middle of July, brand clothing has been greatly reduced, with less than expected performance and worries about ordering in spring and summer in 2013. We believe that the lack of a significant rise in the short term of the clothing plate catalyst (medium term performance has been fully expected, the order growth will not be a catalyst), but in the current market structure, there is no need for further reduction, and men's clothing buying gradually coming. First, the expansion of epitaxial deposits results in better growth than other industries, and the two is to switch to valuation in the second half of the year. Based on the expected performance of clothing, we should maintain a "prudent recommendation" rating.

In the near future, we recommend the listed company, the blue bird stock and the wedding bird. Seven wolves AOKANG international, based on the high dividend proposal, seeks investors with stable returns to pay attention to YOUNGOR and Lu Tai. Among them, the stock is mainly based on the following points: the relative undervaluation of growth stocks and the relatively fast expansion of channels. According to the company's brand operation ability, the news birds have a relatively high growth rate in 2012, and more than 80 stores in 2011 drive the performance of 2012. The seven wolves are mainly based on the brand operation ability and product development ability of the company in the high-end men's clothing; the growth rate of the 2012 will be relatively high; and the potential of the agent's channel integration. AOKANG international is mainly based on undervalued and deterministic performance.