Ru Tai A Rose To Attract Investors' Eyes Again

As the world's largest producer of high quality yarn dyed fabrics, Lu Tai A pulled the investor perspective back yesterday by a 8% increase and a year high. Spin Making this long forgotten industry.

Textile has been used for some time. clothing The industry has suffered heavy losses due to its low export sales and high cost, and many investors even cleaned it out of the stock picking team. However, since the end of last year, the operation of the industry has started to improve. It is reflected in the stock price, represented by Lu Tai A, and has risen quietly since December last year. The stock has risen by 39.30% this year.

If the performance of Lu Tai A is a pleasant surprise, then the rise of textile H-shares may make domestic investors beat the breast. As the largest knitwear manufacturer in China, Shenzhou International rose 66% and 50% respectively last year and this year, and Hong Kong textiles, one of the largest suppliers of core cotton textiles, rose 6.11% yesterday, up 284% from last year, according to the HKEx data.

Analysts say that behind the rise of textile manufacturing stocks is the improvement of the market's performance expectations. Domestic investors are still stuck in the old concept of textile and garment export downturn. It is not known that the leading enterprises in the industry have already been internationalized, optimizing the allocation of resources, reducing costs and expanding sales channels. Stock prices such as Shenzhou International, Tianhong textile, and mutual textiles listed in Hongkong have continued to rise, reflecting the change of overseas investors' understanding of the industry.

It is worth noting that Textile manufacturing enterprises , especially cotton spinning. Wool textile enterprise There are many situations in which profits improve. First of all, Shenzhou International, Tianhong textile and other factories in Vietnam, Kampuchea and other regions, so that the advantages of its low labor force still exist, and these areas often give overseas investment enterprises greater tax incentives, which inspire more labor-intensive enterprises to "go out". Secondly, cotton prices have declined to some extent since last year, causing the cost of textile manufacturing enterprises to decline. Third, the textile manufacturing industry has continuously improved its concentration. For example, Lu Tai owns a complete industrial chain from cotton planting to spinning and weaving and garment making. In addition, textile and garment exports are also improving, and total exports grew by 16.5% in 1-4 months.

Insiders said that the current enterprise order situation improved, business turning point is expected to be reflected in the two quarter, it is estimated that the leading valuation repair market will continue. High performance resilience coupled with rising valuations. textile industry It is expected to achieve "Davies double attack".