Cotton Market Continued Weak Textile Enterprises Procurement Lack Enthusiasm

Since 2014, Cotton market Continued weakness, textile enterprises to buy lint lack enthusiasm, with the reduction of the reserve cotton warehouse price in April, the spot price of domestic cotton fell sharply, although the cotton outside the port was favored by enterprises, the price was once strong, but over time, over the past month, there has also been a marked decline.

According to China's cotton net data Show that in July 22, 2014, the main port of the United States, C/A SM 1-1/8, "the mainstream offer of 86.61 cents / pound, calculated by tariff 1% (the same below), equivalent to 13615 yuan / ton, down 2182 yuan / ton compared with June 18th, and the mainstream 1-1/8 price of Uzbekistan SM 1-1/8" is 92.95 cents / pound, equivalent to 14597 yuan / ton, down 1338 yuan / ton.

Domestic and foreign cotton prices are narrowed. raw material The decline in prices has enhanced the competitiveness of the domestic cotton yarn market. However, the purchasing power of cotton yarn is not enough, the orders are scarce, and the price continues to fall. The operating profit of textile enterprises has not improved significantly. The number of limited production and production is still increasing slowly. Enterprises need to pay attention to the impact of the new cotton policy on the market in 2014.

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The differentiation of the various sub sectors of clothing and home textiles will be the tone of the future: the children's clothing and outdoor sports industry that focus on the development trend of the industry. Especially the development of children's clothing industry. According to statistics, the growth rate of the annual output value of children's clothing industry in China will reach 25%-30% in the next few years. The birth peak after the two child policy will be a solid foundation for the development of the industry. We should pay close attention to the relatively clear recovery of the home textile industry; avoid unidentified casual wear, men's clothing, footwear and high-end apparel industry.

There are three main directions for the selection of plate investment targets: first, the leading enterprises in the sub sectors; the two is the leading enterprises with the leading transformation, actively expanding the full channel mode, and opening the brand new development space with the comprehensive service provider strategy; three, the company that has the basis of expansion and is expected to gain in the industry and buy the integration boom.

We judge that future transformation, development, transformation and expansion will be a necessary way to promote the concentration of industries and stimulate leading enterprises. Based on the above several investment threads, Semir clothing, Pathfinder and fuanna are mainly recommended.

The textile industry is expected to maintain steady growth in the second half of this year: the growth rate of the industry may be slightly lower than that of last year. Under the influence of narrowing the price of cotton at home and abroad, long-term profitability has brand advantages, high-end product positioning, strong listed companies, but short term performance may be under pressure. We can give due attention to Lu Tai A.