Shen Wan Textile And Garment Sector Rose 10.03% Overall.

< p > August, the industry slightly outperformed the market.

In August, Shen Wan < a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < < > > plate overall rose 10.03%, slightly outperforming the market.

Textile manufacturing and home textiles increased by 9.02% and 11.13% respectively.

All sectors of the sub sector rose to varying degrees, of which the men's wear plate, which had a bad trend last month, rose 11.15% this month.

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< p > operation of the industry: in August, the difference between domestic and foreign cotton prices was reduced. In August, the average price of domestic 328 grade cotton monthly was higher than the international cotton price CotlookA (FE), and the average price of Customs month was 4607 yuan / ton, 1.7% from the previous month, narrowing 18.8% compared with the beginning of the year.

It is expected that the short-term spreads will remain at a high level of 4000-5000 yuan / ton.

In August, prices of other raw materials were basically stable.

External demand: export growth rebounded sharply in July.

Domestic demand: the growth rate of garment retail sales in July has been callback.

All listed companies in the industry have released the interim report.

In the first half of 2013, the SW textile manufacturing industry achieved an operating income of 43 billion 165 million yuan, an increase of 5.4% over the same period last year, and realized a net profit of 2 billion 345 million yuan attributable to shareholders of the parent company, an increase of 26.3% over the same period last year.

The SW apparel home textile industry achieved a business income of 50 billion 105 million yuan, an increase of 10.9% over the same period, and a net profit of 4 billion 62 million yuan attributable to shareholders of the parent company, down 1.22% from the same period last year.

In August, industry valuations rebounded from last month.

As of August 31st, the absolute price earnings ratio (TTM overall method, excluding negative value) of Shen Wan textile and garment was 17.83 times, of which 21.45 times the textile manufacturing sector and 16.1 times of the apparel home textile sector.

Valuations relative to the Shanghai and Shenzhen 300 index have also picked up.

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< p > August investment strategy: textile manufacturing industry: maintain prudent recommendation rating.

The difference between domestic and foreign cotton prices in August has narrowed compared with last month. It is expected that the price differentials will remain at a high level of 4000-5000 yuan / ton in the near future.

Export growth rebounded sharply in July, and export grew steadily in 1-7.

The performance of the leading industry in the industry showed a continuous upward trend, and the weak recovery trend is expected to continue in the second half of the year.

The price and sales volume of the leading products in the industry have increased, and the performance of the central newspapers has been better, and the annual performance has been confirmed.

Maintain a cautious recommendation rating on the plate.

It is suggested that we continue to pay attention to the opportunities of valuation upgrading, such as the leading A, Huafu color spinning, Bailong Oriental and cashmere velvet industry.

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< p > clothing home textile industry: maintain neutral rating.

After the vigorous promotion in June, the growth rate of domestic garment retail sales in July was somewhat reversed.

The terminal is still in the vigorous inventory stage, and the plate has been adjusted deeply for a year. At present, the valuation has reached the bottom of history, and the valuation risk is relatively small.

At present, there is no significant improvement in the fundamentals of the plate, and is expected to remain at the bottom of the adjustment process.

At present, the main factors that affect the recovery of stock prices and valuations are the recovery of domestic terminal consumption, the progress of terminal inventory and the progress of reporting of listed companies.

Short term plate lacks catalyst, and maintains neutral rating.

Continue to pay attention to the fundamentals of relatively good stocks valuation repair opportunities, such as fuanna, LAN Zi shares, Luo Lai home textiles, Pathfinder and so on.

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