Looking At The Investment Opportunities Of Textile And Clothing Industry In The Long Term

One week market review

Following the sharp decline of the stock market last week, the market bottomed out this week and rose slightly. The Shanghai Stock Exchange Index closed at 2086.17, up 2.93%, the Shenzhen Composite Index closed at 8679.22, up 5.82%, and the Shanghai and Shenzhen 300 closed at 2293.11, up 4.28%. spin clothing The sector rose 0.32% this week, of which the textile manufacturing sector fell 0.69%, and the clothing and home textile sector rose 1.14%.

　 Industry dynamic scanning

(1) In September, China's manufacturing PMI was 49.8%, textile and clothing Clothes & Accessories Industry above 50%; (2) ICAC predicts that the price difference between Chinese and foreign cotton will narrow; (3) Economic operation of textile industry from January to August; (4) The global clothing export volume declines and the price increases; (5) China's orders will decrease, and India's cotton exports will decline significantly.

　 Company news click

(1) Toread (300005): the actual controller of the company promises not to reduce its shares within the year; (2) Shanshan Shares (600884): Ren Weiquan, General Manager, resigned; (3) Meibang Clothing (002269) issued a total of 800 million 365 day short-term financing; (4) Baili's acquisition of Big Step is expected to be completed by the end of the year; (5) Nike's first fiscal quarter: its profit fell 12% to $567 million.

Investment perspective

Textile manufacturing sub industry: the inflection point of the textile industry has not yet appeared, the external market demand is still relatively low, and the overall volatility of the textile sector is likely to be greater.

Clothing and home textile sub industry: in the weak market In the environment, the brand clothing enterprises with certain performance growth have good defensive ability. In the medium and long term, we are optimistic about Toread, Souyute (002503), Landsee (002612), Jiumuwang (601566) and Seven Wolves. Short term brand clothing plate lacks stock price catalyst, waiting for investment opportunities of valuation switch.