Textile And Garment Industry: Deep Pformation Expecting Performance In The Coming Year

Industry pformation is surging, and mergers and acquisitions are endless: this year, the number of mergers and acquisitions across industries / industries has reached 17/11 respectively, and the number of mergers and acquisitions has gradually increased.

This report combs the pformation logic of cross industry mergers and acquisitions, cross industry restructuring, horizontal and vertical acquisitions in the same industry, and quantifies the expected companies in the industry's pformation and pformation. Four.

In the past year, the pformation of industrial mergers and acquisitions was concentrated on the "dilemma" of textile enterprises and

In terms of "industry integration", we are more interested in companies with industrial integration and synergy.

Looking forward to 2015, we believe that the leading apparel industry has accumulated rich experience in the existing business, and the opportunity to expand the market space has been achieved through mergers and acquisitions. Meanwhile, since the PE development in 2005, private equity funds have accumulated a lot of projects for mergers and acquisitions of listed companies, and industry integration is ready to go.

Retail sales are still in the doldrums, and sports, home textiles and leisure have taken the lead: 1-10 months, total retail sales of consumer goods totaled 21 trillion and 310 billion yuan, up 12% from the same period last year, down 0.96 percentage points from the same period last year, and retail sales growth is still bottomed out.

From the order data trend, inventory cycle and performance, sports, home textiles, leisure industry has a clear recovery trend.

The outdoor industry maintains a high degree of scenery. Casual men's clothing and high-end men's and women's clothing are still in the adjustment stage in the short term.

2015 investment strategy: we believe that after nearly three years of adjustment, the brand clothing sector has digested most of the downside risks, and the sub sectors have gradually entered the performance recovery and valuation repair cycle.

In 2015, more attention should be paid to the strategic implementation and project progress of enterprises in promoting pformation. The leading enterprises will hopefully come out of a clearer development path after this round of adjustment.

On the choice of stocks, we tend to choose leading companies with clear objectives in pition. Combined with the expected value recovery and performance recovery, we recommend the Pathfinder in 2015 (creating "outdoor industry ecological chain", stimulating the sports industry policy), Maison culture (layout cultural industry chain, which is expected to benefit from Shanghai Disney Kaiyuan), and the long term stock market.

Industry group), AOKANG International (end of channel adjustment, near turning point of performance), Semir dress (channel adjustment end, overall layout of children's industrial chain), Luo Lai home textile (join the direct camp to enhance the channel control rights, join the big pox network is expected to expand online business), Jia Xinsi silk (diversified industrial layout, cocoon silk market is expected to integrate the industrial chain, get the pricing power of the global silk industry).

Risk warning: 1) retail environment continues to languish; 2) uncertainty exists in M & A and pformation; 3) risks in O2O process.