The Peak Season Of Consumption Is &Nbsp; Fundamentals Support Outstanding Enterprises.

Industry profits picked up significantly, and profitability in the medium term increased significantly.

In the first 8 months of this year, the main factors of improving the industry's favorable industry efficiency have not changed. The total revenue and profit have increased rapidly. The total operating income and profit of the textile industry increased by 26.83% and 53.6% respectively. The apparel industry increased by 22.35% and 30.92% respectively over the same period.

Benefit from domestic economic recovery, medium term textile

Export growth will slow down.

At present, faced with unfavorable factors such as slowing export growth, pressure on RMB appreciation, rising raw material prices and rising labor costs, it is expected that the profit margins and profit growth rate of manufacturing enterprises in the fourth quarter will decline and overall investment opportunities will be smaller to maintain the "holding" rating of the sub sector.

A few superior manufacturing enterprises with scale and brand effect have a certain cost pfer ability.

We recommend that we focus on the excellent enterprises that are pioneering and enterprising, highly developed and valued, including 28.15,0.09,0.32%, Huafu color spinning and Luen Fat share.

Domestic retail growth trend is clear, brand and

In the first 8 months of this year, the total retail sales of domestic consumer goods increased by 18.2% over the same period last year, with the total retail sales of textiles and clothing above the quota increasing by 23.7% over the same period last year.

With mild inflation showing and domestic residents' income level, purchasing power and consumption will continue to improve, it is expected that the total retail sales of clothing will continue to maintain a high growth rate of about 20%.

At present, most textile and garment retail enterprises in China are in the joint strengthening stage of channels and brands. Brands enhance the ability of channel negotiation, expand channels and increase market share and brand awareness. We believe that enterprises with brand and channel advantages will continue to maintain high growth.

Investment advice and risk warning:

The fourth quarter is the peak season for textile and clothing consumption. The four quarter retail sales growth is expected to reach 25%.

The sub industry recommends attention to home textiles, brand clothing, outdoor products and women's shoes. It is recommended to pay attention to companies with basic support, profitability and higher income elasticity. It is recommended to pay attention to Luo Lai home textiles (72.53, -0.47, -0.64%), fuanna (45.10, -0.48, -1.05%), seven wolves (33.30,0.25,0.76%), wedding birds (26.94, -0.07, -0.26%), Meng Jie home textiles (43.99,0.19,0.43%), American Apparel (27.53,0.03,0.11%), Pathfinder (27.380,0.38,1.41%) and Saturday (17.84, -0.19, -0.19).

The main risk is domestic economic slowdown, raw material prices skyrocketing and plummeting, and RMB appreciation brings exchange rate risk.