Textile And Apparel: Online Clothing Sales Grew Steadily In June, And Cotton Planting Area Steadily Decreased.

A week's review: this week CITIC textile and clothing index -1.07%, textile manufacturing and brand clothing respectively -1.86% and -0.21%, the Shanghai and Shenzhen 300 index -0.22%. From the valuation point of view, textile manufacturing / brand clothing ring -1.86%/+0.12% respectively, reaching 45.50/27.46. From the point of view of individual stocks, ST hermit, LAN Zi and Song Li Si are in the top ranks.

Industry data & Information:

Brand clothing: online clothing sales grew steadily in June, and the growth rate of home textiles increased year by year. From the online sales situation, the sales of Tmall platform clothing and home textile products continued to grow year by year (+9.4%) in June 2019, or benefited from 618 major promotional activities. During the 618 period, hundreds of brands of Tmall traded over 11 last year, the highest growth rate was over 40 times, and over 110 brands were traded over 100 million, of which clothing products in the first hour of June 16th increased 266% over the same period. Sub category, men / women / children's clothing, home textile products sales growth in the same month was -1.43%/+6.86%/+21.98%/+73.48%, the growth rate was -27.51/+2.28/+12.46/+48.83PCTs respectively.

Textile production: in May, domestic cotton sowing was basically completed, and the planting area was stable and slightly reduced. According to the data of China Cotton Association, as of May 31st, 55.2% of the cotton seedlings in China were in the true leaf stage of 4~5, with the increase of 5.59PCTs. In terms of planting area, Xinjiang has been stable and slightly stable throughout the country. The area has been stable, with an acreage of 36 million 873 thousand and 600 mu and an increase of 0.2%. The cotton area in the mainland continued to decrease, of which the the Yellow River basin / Yangtze River Basin has an area of 591.76/493.97 mu, with a decrease of 6.82%/8.65%.

Industry outlook and investment advice: taking into account the frequency of tax cut and tax reduction policies since 2019, while liquidity easing is expected to boost consumer spending, it is expected to grow steadily throughout the year. Judging from the valuation point of view, the leading brands of clothing brands are less than 20 times valuations and are at a relatively low level. It is recommended to pay attention to Semir clothing with good Racecourse of children's clothing, underestimate the high value of dividends, the men's wear leading dragon's home, as well as the outstanding undervalued high-end performance of the song.

Risk warning: the risk of macro-economic growth is slowing; terminal consumer demand is slowing down, or sales of brand clothing are lower than expected; and cotton price risk is different.