Domestic Demand And Exports Exceeded Expectations In The First Quarter Of 2011

In the first quarter of 2011, the total retail sales of textiles and clothing increased by 201 billion 400 million yuan, up 22.3% from the same period last year, which is 6 percentage points higher than the retail sales of consumer goods in the whole society.

At the same time, consumer confidence index and other indicators have rebounded sharply from the bottom.

China's textile and apparel industry accumulated in the first quarter

Economic environment affects the whole operation of the industry.

Because of the deflation of the national economic policy this year, the overall operation of the textile industry has also been negatively affected.

At the same time, rising inflation pressure and RMB appreciation and other factors raise concerns about the negative impact of industry demand. In addition, the impact of the Japanese earthquake and the unstable external factors of the international political situation have also deepened this concern, resulting in a high cotton price decline.

We believe that cotton prices will continue to oscillate before new cotton comes into market this year, and demand factors will lead the direction of cotton prices in the future.

At the same time, the price of polyester, viscose, spandex and other chemical fiber products that have a certain substitution effect on cotton also fell accordingly, in which the viscose fiber and the spandex fiber have a larger decrease.

The overall profitability of the industry is under pressure.

Last year

Although the overall income and profitability of the industry are at a relatively high level, the profitability of the upstream industry has weakened.

If raw material prices continue to maintain a historical high oscillation, this will directly test the ability of industry textile and garment enterprises to pfer costs through raising prices, and the ability to deal with risks of cost changes flexibly.

We will focus on brand retail clothing enterprises with brand advantages and the ability to raise prices for products.

Because some large export textile enterprises with technical advantages and high added value have certain pricing power for products, they have strong compression capabilities, and the profitability of these high-quality enterprises is sustainable.

In the future, with the pformation of the market style, the quality enterprises of the textile and garment sector will have a wave of valuation recovery.

Give industry "overweight" rating.

In May, it recommended the brand enterprises whose performance increased more clearly, focusing on fuanna, Luo Lai home textiles and wedding birds.