Minsheng Securities - Textile And Apparel Industry'S Views This Week

Abstract:

This week's point of view

Last week, the textile and garment sector rose by 2.11%, and the industry outperformed the Shanghai and Shenzhen 300 index by 0.17 percentage points.

Judging from the rise and fall, it ranks twentieth among the 29 tier one industries in CITIC.

At present, the overall consumption environment is under pressure, but we believe that this year's personal tax policy reform will help stimulate the consumption potential of residents, and is expected to promote clothing consumption and help the industry get warmer.

It is suggested that we should pay attention to the leading industry leaders who have expected better performance this year and are expected to maintain growth this year: Semir fashion, Song Li Si and an Zheng fashion.

Semir Costumes: Barbara brand occupies the first place in the children's clothing industry, and the business of casual wear has steadily increased.

We should further expand the electricity supplier sector and actively layout the shopping center channels to cater to the consumption trend of young people.

Geus: focus on creating high fashion group, multi brand layout, brand in the channel development, marketing promotion, product planning, supply chain management and other aspects of synergy, rapid increase in performance.

An Zheng fashion: the main brand nine posture steadily grows, gradually cultivates new brands.

The acquisition of 70% stake in ritual information is expected to help the company layout children's clothing and maternal and child industries, enhance the operation capacity of the electricity supplier, while thickening performance.

On the other hand, domestic enterprises are being hit by low cost in Southeast Asia and other parts of the country, and some domestic textile manufacturing enterprises are actively promoting the pfer of production capacity.

We believe that setting up factories in Southeast Asia and other Southeast Asian countries is expected to bring the advantages of Taxation, labor force and customer import duties to textile enterprises, which will help reduce international logistics costs, reduce international trade barriers, enhance cost competitiveness, and enhance competitiveness in the global market.

It is recommended to focus on the quality of manufacturing enterprises that are more stable in order, actively expand Vietnam's capacity, and are expected to continue to improve, such as Jiansheng group and Huafu fashion.

Kin Sheng group: abundant orders, excellent customer resources.

Vietnam is planning to build a production base for cotton socks and seamless underwear, and its performance is expected to continue to expand with the further expansion of capacity.

Huafu fashion: deep ploughing Xinjiang, enjoying the advantages of resources, location, policy and so on.

Promoting the layout of Vietnam's production capacity will help enhance the competitiveness of our global customers.

Risk warning

The change of economic environment has led to the low consumption of clothing, the fluctuation of exchange rate, the fluctuation of cotton prices, and the development of new brands is not as good as expected.