Textile And Garment Industry: Stick To The Leading Value Under The Split Market

The characteristics, logic and main conclusions of this report: This report details the textile industry.

The main development status and profitability of the major sub sectors of the industry are reviewed. The data of market and industry operation in the first half of 18 years are reviewed, and investment opportunities in various sectors are thoroughly explored.

This report is worthy of our attention: following the promotion of overall inventory management, optimization of supply chain management, and improvement of operational efficiency in recent years, textile and apparel have been promoted under the promotion of consumption promotion.

Leading enterprises have improved their business and profit indicators, and their capacity expansion and channel layout are becoming more and more perfect. At the same time, since June, the valuation and price of the overall market volatility have almost reached the historical low level. We recommend the leading companies of various sub sectors that are basically well oriented and have clear investment strategies.

Clothing home textiles sub section gives "recommended" rating:

The growth driving force of home textile industry has basically changed from epitaxial growth to endogenous growth. Under the background of "new retail" mode, Internet genes such as AI, big data, 3D printing and personalized customization have gradually penetrated into all aspects of downstream garment home textiles. The industry has gone to the end of inventory, and the stock has recovered to a healthy growth and the product has changed to a normal channel. The profit margin has improved compared with before. We believe that the resurgence of the home textile family will gradually become clear.

The textile production sub section is given a "prudent recommendation" rating: with the advance of intelligent manufacturing, leading enterprises rely on technological superiority and scale effect to expand their capacity and accumulate the advantages of moat while constantly improving their trade barriers.

We believe that the leading textile manufacturing enterprises will actively layout the advantageous areas and extend to the downstream of the industrial chain when the gross profit margins are generally low.

Under the trend of global economic recovery, the revival of terminal demand will benefit upstream textile manufacturers.

Investment proposals and key targets: in the context of the overall stability and upward trend of the industry fundamentals, we recommend two types of Companies: 1) mergers and acquisitions and high performance blue chip stocks: the main industry is stable pformation of large household Anna; 2) actively embrace the future.

The direction of "new retail" model company: the first national

Brand Hai Lan's home, at the same time, it is recommended to pay attention to the new business mode of Antarctica.

Risk warning: terminal demand recovery is less than expected, macro and policy risks, inventory turnover is not as expected.