Textile and Apparel: Industrial Boom to Stabilize Brand Apparel Investment

The prosperity of the industrial production of textiles and garments has stabilized at the beginning of the year. From January to November 2011, the yarn production of textile and garment enterprises above designated size increased by 12.46% year-on-year, cloth production increased by 13.25% year-on-year, and apparel production increased by 8.52% year-on-year, compared with 11.82%, 13.40%, and 9.43% in the same period last month. In 2011, the industrial added value of the textile industry increased by 8.3% year-on-year, and rose by 0.5 points month-on-month. In December, the value of the industry rose by 12.7% year-on-year, and rose by 2.6 points month-on-month.

The price of raw materials increased slightly, the cost support, planting intentions fell, and the factors of purchasing and storage. Cotton prices rebounded. 2011-01-19 The price of national cotton 328 has climbed to 19,196 yuan/ton, which is 195 yuan more than the current low; International cotton price cotlookA(FE) 2010-1-18 is 102.65 cents/lb, which is higher than the current round low 4.5%.

Terminal prices continue to rise Terminal prices, from January to November 2011, China's US textile and apparel unit price of 1.62 US dollars / square meter, up 9.43% year-on-year; large-scale shopping malls from January to October clothing retail price of 378 yuan / piece, up 18.38% year on year.

The export growth rate of Lewis fell back to a turning point, and the exports of East Asian countries were strong. From January to December, textile and apparel exports totaled 247.9 billion U.S. dollars, a year-on-year increase of 20%, and the growth rate was down by 1.2 points from the previous month. Exports to the United States The top 10 countries in the United States only recorded positive growth in India, Vietnam and Indonesia in November.

In December, the growth rate of domestic apparel sales has rebounded. The retail sales of the country's 50 major shopping malls in December 2011 increased by 21.4% year-on-year, and the growth rate rebounded from the previous period, up 3.8 percentage points from the same period of last year. The growth factor is to see that the growth of clothing retail is changing from price-based to volume-based. Clothing retail sales continued to grow at a low single digit rate in 2011.

Brand apparel investment comes at a time when prices and sales are combined. We maintain the bottom line of 1Q industry profit growth. After adjusting the valuation advantage of the previous period, brand apparel has gradually appeared. As of 2012-01-19, brand-name clothing PE (TTM) was 21.58 times lower than 25.36 times that of medium and small plates. In terms of valuation history, the valuation of branded apparel in October 2008 was 55% higher than that of all A-shares. Currently, it is 63% higher than the valuation of the A-shares, and the valuation space is extremely limited. The specialization of labor and cultural precipitation are still the focus of brand apparel investment. Companies that have a continuous brand culture and sound social responsibility will continue to be the first choice for investment: “Love the family” concept, “Hi” culture, Wolf Totem will continue to upgrade the artistic and cultural concepts of new and old customers, and promote the company’s continued growth; The mid-range brand growth space, which has experienced a surge in raw materials and plunges without losing the concept of brand service, is still vast.