Industrial Operation Improves The Performance Of Men's Clothing Steadily By Quarter

Benefiting from the expected impact of market incentives on property related industries, the near future Home textile industry Out of the rising market, while the clothing sector is also strong under the strong growth of overall performance, of which seven wolves and AOKANG international have reached a record high. A number of brokerage research institutes believe that in the context of no acceleration in domestic demand export growth, the textile and garment industry will continue to slump in the short term. However, the performance of sub sectors will be divided, among which men's clothing is robust and has scale effect, and the performance is the most determined.

　　 Quarterly improvement of industry operation

The Orient Securities report pointed out that with the fall of raw material prices in the two quarter of 2011, the continued downturn in the European and American economies and the increase in the number of bases in the same period last year, the export growth rate of the industry decreased significantly from September 2011, and the downward trend in the two quarter of 2012 has stabilized. From a monthly view, the export fluctuation rate of industries in 2012 from 1 to May in 2012 was -0.43%, -2.54%, 2.86%, 0.45% and 2.04% respectively. It is expected that the export trade will improve slightly in the three quarter, but the overall export volume of the industry is still stagnant all the year round.

In terms of domestic sales, in April 2012 and May, there were hundreds of major retail enterprises nationwide. clothing Retail sales of commodities increased by 20.25% and 12.16% respectively over the same period. Orient Securities expects that the domestic sales of the three quarter will continue to recover gradually since the two quarter. Taking into account the reasons for inventory digestion and the same period base, sales growth in the second half of this year will be significantly better than that in the first half of the year. The growth of intra industry sales will gradually return to a relatively balanced price and quantity. The textile and garment industry will show a quarterly improvement in the whole year.

In terms of valuation, Shanghai Securities believes that the price earnings ratio of apparel home textile industry is close to the bottom of history, although the level of sales is not at the bottom, but it has declined to a relatively large extent. Compared with Shanghai and Shenzhen, the price premium ratio of apparel home textile industry is relatively high, and the market valuation advantage is not obvious. The price earnings ratio of textile manufacturing industry is also at a relatively low level. Compared with Shanghai and Shenzhen 300, the industry premium rate is relatively low. The lower price earnings ratio of the textile manufacturing industry corresponds to the relatively gloomy prospect of the industry itself.

　　 Men's wear Sound performance

From the perspective of the changing trend of consumption age structure, Huatai co believes that the income of formal clothing and business casual wear, footwear and home textiles is huge, and the number of people entering the formal dress business and business leisure age (25-55 years old) in the next five years will increase by 38 million, accounting for 7% of the total age.

According to the industry, CITIC Securities believes that the growth rate of the same industry in the men's clothing industry in 4 and May has been restored to 15% and 10% respectively, maintaining the prosperity. The sales growth of the home textile sector has picked up slightly in the two quarter, but the recovery rate of the boom has not been high since the two quarter is off season. In addition, CICC also pointed out that from the 2012 order meeting situation, outdoor growth is still leading, men's clothing is growing steadily, and brand growth is mostly maintained at 20%~30%.

In terms of allocation, CICC comprehensively evaluated the five indicators of performance growth, growth quality, markup rate, direct market share, brand awareness and market position, and recommended higher performance growth. Moreover, inventory and accounts receivable turnover rate did not deteriorate significantly, and cash flow stability was maintained. The company's price increase rate was more reasonable than that of the brand positioning and market position. Seven wolves and nine Mu Wang as the leading business casual men's wear industry, their performance has been growing steadily. They have maintained a relatively high performance growth rate through raising gross margin and reducing the cost rate. The inventory and accounts receivable turnover rate has not deteriorated significantly, and the operating cash flow has been stable. Compared with the Polo increase rate of 4.2 times the representative of the international middle men's clothing brand, the rate of increase between the two companies is 4.6~4.7 times, though there is a gap, but it is relatively reasonable.