China'S Newspaper Will Soon See High Growth Of Textile And Apparel Stocks.

Since the beginning of this year, the total textile and apparel sector has increased by about 12%, which is only slightly higher than mining, media and steel industries. As an alternative consumer goods, the overall weakening of the textile and garment sector has much to do with market investment preferences, downward pressure on consumption, trade wars and the sluggish factors of textile and garment itself. But combined with this year's Quarterly Bulletin and the current forecast, the overall growth of textile and apparel shows a warmer growth. Some sub leading companies continue to show a steady growth trend. From the subdivision of the plate, high-end sports and leisure subdivision leaders and low price and undervalued "double low" public clothing head companies are expected to show more opportunities.

Large consumption of textile and clothing fell out of "value depression".

According to statistics, as of July 3rd, the textile and garment sector has increased by about 12% since the beginning of the year, which is only slightly higher than that of mining, mass media and iron and steel industries. It is almost at the bottom of the two cities. This is in sharp contrast to the same food consumption and household appliances, which are 65% and 41% plus first and fourth respectively.

The overall valuation level of textile and clothing is relatively low. From the perspective of price earnings ratio, the current overall price to earnings ratio of textile and apparel is estimated to be 31 times that of the TTM algorithm, which is at a historical low level. From the point of view of specific stocks, many stocks are worth only about 10 times the value. As at the end of July 3rd, such as Hai Lan's home, Jin Hong Group (formerly Vigna S), nine Mu Wang, fuanna, Song Li Si, seven wolves, Taiping, The valuation level of birds and Semir clothing is 10~20 times. Among them, the market price of Hai Lan, the largest market of textile and clothing, is only 11 times. In addition, from the perspective of market margin, the overall market price ratio of textile and apparel is about 2 times, almost at the lowest level in five years. Among the stocks, such as the seven wolves, the China group and the Jin Hong group, they even fell into a broken net army. In addition, La Natsu Bell, AOKANG international and so on were all on the edge of breaking the net.

Combined with the performance situation, textile and clothing have been more obvious marginal improvement recently. Some analysts said that the textile and garment industry is expected to further usher in the promotion of consumption and tax reduction and other policy drivers and trade disputes. At present, the overall valuation of textile and apparel has a strong margin of safety, and some leading stocks with steady growth have fallen out of "value depression". Combined with the overall net profit growth rate of textile and apparel, in the first quarter of this year, the overall growth rate of net profit of textile and apparel industry was 2.7%, achieving the first quarter "positive", and changing the situation of continuous net profit decline in the same period and the whole year in 2018 and 2017.

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According to the latest forecast, there are 9 textile and clothing listed companies in the two cities, which disclosed their forecast for this year's report. Among them, 7 were all pre growth, and 5 of them included Jia Linjie, news bird, Saturday, *ST Busen, and duper. In contrast, La Natsu Bell and Mei Bang clothing are pre cut, while textile and clothing performance notice is generally gratifying, but the plate is divided. Combined with last year's annual report and this year's quarterly report, the net profits of many listed companies including Hai Lan home, nine Mu Wang, Semir costumes, and BILLIN Finn have achieved continuous growth.

Some analysts said that in the context of the upgrading of consumption and the intensification of market competition, the differentiation of high-end sports and leisure and public clothing will become more and more obvious. High-end sports and leisure and other sub leading companies and low price, undervalued "double low" public clothing head company is expected to show more opportunities.

Among the A shares, the company is one of the few listed companies in the two cities positioned in high-end fashion sportswear. According to the forecast, the net profit is up to 196 million yuan, an increase of 60% over the same period last year. For the main reasons for the change in performance, the company said that due to increasing investment in product development, product competitiveness continued to improve, sales continued to grow. According to the reporter's inspection, since 2016, its net profit has maintained a continuous growth. In 2018, net profit growth was 62% and 53% respectively in the first quarter of this year. The steady growth of performance was also reflected in the stock price, and the stock market rebounded above 40% at the beginning of the two market. By contrast, Anta, Lining (Hong Kong stock) and Nike (US stock), as the benchmark of premium brand performance, have made remarkable achievements in recent years. In the cold winter of textile and apparel industry, they have achieved a trend of adverse market growth, and the share price has reached a new high. This is also a representation of the high degree of vitality in the field of sports and leisure segmentation.

As one of the leading enterprises in the public leisure wear, Semir clothing has been highly sought after by the organization. In the two tier market, since the low point in mid June, the stock has rebounded nearly 20%, and it has outperformed both the stock market and the stock market. According to the reporter's inspection, Semir clothing has welcomed 18 batches and 185 research institutes this year. It is the most popular listed company in textile and clothing industry. In the past two months, Semir apparel has visited 3 batches and a total of 126 agencies. According to the combing of reporters, the institutions involved in the survey include Zhejiang Merchants Securities, Haitong Securities, Tianfeng securities, Wells Fargo fund, Dacheng Fund and a number of brokerages and funds. In the survey, the agencies are concerned about the development goals of the company's leisure wear business and the way to achieve their goals. For the future development goal of Semir clothing in the next 3~5 years, the company said that to become a leading industry, it is necessary to consolidate the status of the head of the business sector, as well as the thickening of new business breakthroughs, such as Macal (Semir clothing baby brand). In addition, the company emphasizes that it is one of the core competitiveness of the company to provide consumers with cost-effective products.

From the performance point of view, Semir clothing 2018 and the first quarter of this year, respectively, achieved 48.83% and 11.06% net profit growth, its current price earnings ratio is only about 18 times, in the middle of the big curtain is about to open, Semir clothing's mid school transcript will undoubtedly become the focus of attention of the market, institutions for Semir clothing intensive research, or is looking at its current undervalued value. The growth of "value depression". (Note: the stocks are for reference only, not buying suggestions).