Expert Analysis: Price Trend Of Raw Materials In Textile And Garment Industry

In the remaining two months of the year, our strategy for the textile and garment industry is as follows: since the three quarter, market The main concerns of the textile and garment sector are: (1) whether the quarterly performance of the three quarter has exceeded expectations or traps.

On the whole, most of the companies meet expectations, except for the rich Anna and the seven wolves. (2) whether there are catalysts or bright spots in the short term.

Spring and summer 2012 Order-placing meeting Slightly lower than expected, the average growth rate is below 30%; especially the home textile sector, which is concentrated by the organization, has fallen sharply due to the lower expectations of the home textile ordering company. Since October, there has been a rebound in the market as a result of policies turning to fine tuning. We believe that under this background, the textile and garment sector is not the best choice under the rebound market because of its centralized holding and poor liquidity. In October, the textile and garment sector rose 3.82% this month, losing 0.67PCT. From the market sales data, from August, the negative impact of price increase on sales has begun to show, and it is still continuing. At present, the valuation of the plate is about 27 times. Compared with the historical valuation interval of 20-30 times, it is not attractive enough to maintain the "recommended" rating of the brand clothing sector, while maintaining the "neutral" rating of the textile sector on the premise of maintaining the growth momentum of raw materials and labor costs.

We suggest that we pay attention to: 1, the fast growing industries and some companies. For example, the explorers in the outdoor industry, the Fuyuan with a larger proportion of direct investment, and the silver cashmere industry with a higher price increase; 2, the undervalued varieties: 12 year old birds with a value less than 20 times; and 3, larger elastic varieties such as orient gold Yu. At present, the market has begun to consider the 2012 valuation. We think that we need to pay attention to the future: (1) the spanformation of the market style; (2) the single month growth of the brand clothing listed companies. Market Sales data; (3) the inventory of franchisees; (4) the growth rate and recovery of accounts receivable.