Wan Lian Securities -- A Weekly Report On Textile And Garment Industry

[Abstract]

Market review: last week (June 8th -6 12), Shen Wan textile and apparel index rose 0.36%, 0.74 percentage points higher than the Shanghai Composite Index, and ninth in the 28 industry index of Shen Wan. Since the beginning of this year, Shen Wan textile and apparel index has dropped by 4.76%, running 0.48 percentage points off the Shanghai Composite Index, ranking nineteenth in the 28 sub sectors of Shen Wan. Two level sub plate, textile manufacturing 1.29% last week, clothing home textiles -0.12%; early to date textile manufacturing -6.96%, clothing home textiles -3.57%. The PE of the plate is estimated to be 24.24 of textile production and 37.53 of apparel home textiles. Three level sub plate, last week in textile manufacturing, wool spinning 1.53%, cotton spinning 1.91%, silk 2.47%, printing and dyeing 1.57%, excipient 0.36%, other textile 0.52%; clothing home textiles, men's wear 0.31%, women's clothing 5.08%, casual wear -0.60%, shoes and hats -2.75%, home textiles -6.34%, other clothing 1.27%.

Important events in the industry: (1) overseas: Gap's first quarter operating loss amounted to US $1 billion 200 million; Adidas's recovery rate in China was faster than expected; Zara net loss was 400 million euros; Lulu lemon Q1 net revenue fell 17% compared to the same period last year, and most stores had opened. (2) domestic: technological innovation helps Anta's "new domestic product" campaign; Huafu fashion (002042) plans to increase its main business by 1 billion 500 million plus; Ruyi group (002193) will create an international light luxury fashion brand operation platform; Tencent signed a strategic cooperation agreement with Meleven (002832), signed a smart retailing strategy; BELLE substantially reduced its momentum; sports brands gathered to lay the flagship store.

The important announcement of the listed companies: convertible bonds issued by the voice of eplen; the non-public offering of Hua Fu fashion, the lifting of the pledge of shareholders in the Sino Japanese shares (300526), the three lane allocations (600370), and the nine herding Kings (601566); the profit distribution of Taiping bird (603877), the Red Dragonfly (603116) and the Shanghai Sanmao (600689); the good news bird (002154) gets the government subsidy; and the Meng Jie shares (002397) is redeemed for redemption.

Risk factors: 1. Risk of relapse. 2, inventory rise and fall risk. 3, cash flow risk.