Textile And Apparel: Strong Growth In Brand Retail Sector

In the long run, China Textile and clothing The era of sustained two digit growth in exports has ended, and the industry is facing the opportunity to open the domestic clothing market. In the short term, the manufacturing sector will face the risk of rising costs, European crisis and exchange rate appreciation in the fourth quarter. While the retail sector of the retail sector suffered unfavorable factors in 2010, data showed that growth remained strong. Since 2004, China's textile and clothing consumption has entered a stage of high growth, but at present, China's textile and clothing market is only about 1/2 of the export market. Therefore, in the long run, as the basic consumer goods of the residents, the growth of consumption in the future will benefit from sustained rising income. In view of this, we maintain the brand retail sector's "stronger than big city" rating.

2010 domestic clothing retail market The adverse factors are mainly two aspects: abnormal weather and rising cost. Despite these adverse effects, the steady growth trend of retail trade has not changed. In 2010 1-5, the retail sales of textile and clothing consumer goods increased by 23.1% over the same period last year, an increase of 4.28% over the 2009 level.

Clothing products

Retail sales in the 1-4 months increased by 24.4% over the same period, which is better than the average level of retail sales growth. At the same time, data from key large department stores show that: as of the first quarter of 2010, the retail sales of key large department stores increased by 25.42% over the same period last year, of which sales grew by 5.25% year-on-year, and sales unit prices increased by 19.83% over the same period last year. Price increases have become an important factor in the steady growth of retail sales. On the one hand, the upstream manufacturing cost has been effectively transferred, and it is also a side manifestation of the rigid demand of the industry.

We estimate that domestic textile and garment retail sales will increase by more than 20% in 2010. The opening of domestic consumption and the outbreak of overseas economic crisis accelerated the transformation from "processing" to "brand retail". The key links of the industry chain - design, production, brand, channel and so on are in the process of transformation. Although the home textile sub industry is affected by the adjustment of real estate, updating demand and wedding needs will cushion its growth rate. If the residential sales area is reduced by 20%, the growth rate will still reach 10%.

at present Brand retail plate

In 2010, PE was 32 times, and the continuous growth of performance will be the premise of its valuation improvement. It is recommended that we grasp the two categories of "clear performance growth" and "operational turning point". The former focuses on seven wolves and good news birds. The latter proposes to pay attention to the United States apparel and Saturday, the processing and manufacturing sector is 23 times PE in 2010, and the negative factors such as export pressure and cost increase will affect the valuation.