Although The Textile And Garment Sector Was Gloomy In August, Share Prices Were Not Bleak.

Xiaoshan, Zhejiang, ushered in a grand gathering of the global chemical fiber industry -- from China

The eighteenth China International Chemical fiber conference jointly sponsored by China Chemical Fiber Industry Association, China Textile International Exchange Center and Hangzhou Xiaoshan District People's government is sponsored by the Federation of industry.

The theme of this conference is "how to achieve sustainable development in the chemical fiber industry in the high cost era - new trends, new patterns, new fields and new standards".

In recent years, with the coming of high cost era, the cost advantage of domestic chemical fiber industry has been gradually lost.

In the face of the grim situation at home and abroad, the downstream textile enterprises are increasingly cautious in the procurement of chemical fiber, and will not easily pay for the increase in the price of the products. Coupled with the rapid growth of domestic chemical fiber production capacity, the market competition will become more intense. Therefore, the new cost of the chemical fiber industry is difficult to conduct downstream, and the economic benefits will decline sharply. The sustainable development of the industry has become a new topic to be solved urgently.

This conference is keenly aware of the pulse of industry development. Under the background of severe macroeconomic situation and difficult operation of the industry, taking the sustainable development of chemical fiber industry as the breakthrough point, aiming at the current development trend of global fiber industry, the pformation of industry development mode, the development and application of new fiber materials, the development of new technologies, the application of low-carbon economy and biomass technology, and other hot spots facing the industry, the A shares continue to make contributions to the "five poor, six and seven turning ups".

In the history of A shares, the last month appeared in 2004.

Even in 2008, the Shanghai stock index fell 65.39% in the month, there was no sign of the four consecutive days.

Although most of the stocks of textile and garment sector were "blacken", half of the shares went up against the market, and more than 6 of them were successful.

It can be said that although the textile and garment sector was gloomy in August, the share price was not bleak.

"The external market demand is still relatively low, and the industry turning point has not yet appeared, which is the main reason for some textile and apparel stocks' performance decadence."

A textile and garment industry analyst in Beijing said, "in the three or four quarter, textile and clothing consumption will gradually enter the peak season, and the market is expected to get warmer. A relatively stable and well defended listed company will take the lead.

Plate index hit 35 month low

Textile and clothing index receives four consecutive months.

As of August 31st, the textile and apparel index closed 2229.25 points, a 3.89% decline in the month, the lowest intraday probe to 2199.06 points, the 35 month low since October 2009.

With the slight decline of the Shanghai and Shenzhen stock index in August 31st, the A shares in August were shrunken, and the trading volume also shrank to below 80 billion yuan.

In the meantime, the Shanghai Composite Index, which has repeatedly hit three years and more low, has accumulated 2.67% decline in the whole month, contributing to the masterpiece of the four month continuous line. The Shanghai and Shenzhen 300 index dropped 3.1% in August and a 1.9% decrease in the year.

In addition to the continued decline in August, a record of four consecutive months since the 6124 point, this year's stock market has been and continues to refresh a number of bear market records.

Textile and clothing index also received four consecutive months.

As of August 31st, the textile and apparel index closed 2229.25 points, a 3.89% decline in the month, the lowest intraday probe to 2199.06 points, the 35 month low since October 2009.

In the five week of August, textile and apparel rose or fell four.

In the first week, the textile and garment industry index dropped slightly by 0.16%, the same period slightly increased by 0.19% in the same period. In the second week, the textile and garment industry index rose 3.55%, the same period the market rose 1.69%; third weeks, the textile and garment industry index fell by 3.21%, the same period the market fell 2.49%; fourth weeks, the textile and garment industry index dropped to 1.76%, the same period the market dropped to 1.76%;

According to Wind's latest statistics, the index of the textile and clothing industry of Shin Wan fell 3.89% in August, a 10.80% decline in the year. The index of textile industry in Shen Wan rose by 0.6% in August, and 0.3% in the year. The index of the textile industry of Shin Wan fell 5.1% in August and 5% in the year.

Compared with July, the overall decline in textile and clothing has narrowed.

In July, the textile and apparel industry index fell 9.47%, the textile manufacturing industry index fell 11.97%, and the apparel home textile industry index fell 8.15%.

Obviously, the textile manufacturing industry is suddenly emerging and becoming the leader of the entire textile and garment industry.

"The external market demand is still relatively low, and the industry turning point has not yet appeared, which is the main reason for some textile and apparel stocks' performance decadence.

In the three or four quarter of this year, textile and clothing consumption will gradually enter the peak season, and the market is expected to get warmer. A relatively stable and well defended listed company will take the lead.

Beijing textile and garment industry analyst told the author.

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Half of stocks were "eye warming" in August.

Detailed data show that 52 of the 104 stocks of textile and clothing, including chemical fiber, rose in August, accounting for just half of the total market share.

In August, a total of 68 stocks in the textile and garment sector successfully outperformed the market, accounting for more than 64%.

Under the gloomy clouds, many stocks on the textile and garment sector are not bleak.

In August, half of the stocks rose due to the successful market downturn, becoming the most "eye warming" group in the capital market.

Data showed that 52 of the 104 textile and apparel products, including chemical fiber, rose in the market in August, accounting for just half of the total, while the other 16 stocks fell, but the decline was lower than the market.

That is to say, in August, a total of 68 stocks of textile and apparel successfully outperformed the market, accounting for more than 64%.

Zhonghe shares, Chunhui shares, Xun Xing shares, Huafu color spinning, Shenzhen textile A, Shandong Ruyi 6 stocks rose more than 20% against the market, and 10 stocks rose more than 10%; 11 stocks rose between 5% and 10%.

From the point of view of turnover volume, the stock market volume rose sharply.

104 stocks were traded in August with 53 stocks.

More than 20% of the 6 shares were traded, and the volume of pactions was greatly enlarged.

Among them, the monthly increase of 25.44% Xun Hing shares daily average turnover of 8 million 440 thousand and 500 shares, compared with 296 thousand shares in July compared to 2751.62% volume; monthly increase of more than 28% of the shares and Chunhui shares, the average daily turnover in August increased by 1414.18%, 1053.61%.

After this fall, the valuation levels of each sub sector are at the bottom.

As of August 31st, excluding the negative valuation, the textile and garment industry valued 18.66 times, of which the textile manufacturing industry valued 19.43 times, clothing.

The valuation of the industry is 18.33 times, and the valuation of the chemical fiber industry is 24.89 times.

Agencies only look at future performance

In August, only 7 stocks had a net capital inflow rate of more than 2%, and Shandong's voluntary inflow rate was 15.50%, ranking first in the sector. Following the voyage shares, the inflow rate was 10.42%; Lukang science and technology ranked third, and the inflow rate was 8.75%.

The author noted that although half of the textile and garment stocks rose against the market, the performance was eye-catching, but institutional funds were selectively withdrawn.

According to the latest statistics of Wind information, the average net outflow ratio of textile and clothing sector is 1.22%, while only 35 of 104 stocks are favored by funds, accounting for 1/3.

In August, only 7 of the stock had a net inflow rate of more than 2%, the first tier had three stocks, the Shandong Inuit range inflow rate was 15.50%, the civil aviation shares followed, the inflow rate was 10.42%, Lukang science and technology ranked third, and the inflow rate was 8.75%.

There are four stocks in the second echelon. They are deep textile A, Phoenix Bamboo textile, Pathfinder, ST Xinlong.

It is worth noting that in August, the shares of institutional added stocks did not look at whether the fundamentals were excellent, but the possible performance exploits in the future.

Shandong Ruyi: the taste of cross-border mergers and acquisitions

The company entered the textile and garment sector first in August with a 15.50% inflow rate.

However, the company's performance continued to decline, net profit fell 68.68% in the first half of the year, and the net profit in the 1-9 months is expected to be reduced by 80%~90%.

Obviously, institutional capital is not directed at the company's performance.

The author noted that Shandong Ruyi is now accelerating the pace of cross-border mergers and acquisitions, investing 58 million 830 thousand US dollars to buy Renna Co., Japan, gaining 35 internationally renowned clothing brands, 2491 franchised stores and a wide range of design and operation teams, which has enhanced the ability of international market development.

The stock took the initiative to buy an extra large amount of 401 million 610 thousand and 800 yuan in August, and the range actively bought a large amount of 209 million 520 thousand and 900 yuan. At the same time, the stock price rose 21.33%, and it won 24 percentage points in the market.

Voyage shares: the temptation of industrial collaboration

In August, the company came to second with a 10.42% inflow rate.

The company's performance is also not excellent. In the first half of the year, net profit increased by 2.35%. The situation faced by the company in the second half of the year is still more complicated and severe. Policy regulation has brought about unfavorable adjustment to the advantages of the textile and dyeing industry in the Yangtze River Delta. The shipping industry will be affected by the economic cycle and will drag the performance of the company up.

The reason why the fund has been stationed quickly is driven by the deepening of Industrial Synergy, and the overall gross profit margin of the company has increased significantly.

With the deepening of the company's industrial layout and the development of technological advantages, the gross profit margin of the company increased by 3.14 percentage points to 22.46% in the first half of 2012 compared with the same period last year, of which the weaving business was only put into operation in the first half of last year because of the 8 million meter weaving project. After a year's steady production, the gross profit margin increased by 9.55 percentage points to 17.01%, and the gross profit rate of printing, dyeing, electricity / steam and coal combustion increased by 2 percentage points over that of last year.

The stock took the initiative to buy an extra large amount of 11 million 432 thousand and 300 yuan in August, and the range actively bought a large amount of 30 million 856 thousand and 300 yuan. At the same time, the stock price rose 15.31%.

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Lukang science and technology: opportunities for pluralistic strategy

In August, the company came to second with a 8.75% inflow rate.

The company's performance also continued to decline, the overall decline in product mix in the first half of the year, the decline in gross margins, resulting in a decline in profit margins, net profit fell 71.38% over the same period.

The importance of Lukang's technology is its diversity and its opportunities.

Only 5 months after the listing, Lukang technology began to issue corporate bonds and raised 400 million yuan of funds in April 26th this year, and then issued a 200 million yuan loan by Xingye Bank to the Zhangjiagang local financing platform, Zhangjiagang Jinmao Investment Co.

Roughly estimated, the difference in interest rate of 2.25% is enough to give Lukang science and technology a profit margin of 4 million 500 thousand yuan a year.

In addition to lending to earn fixed interest income, Lukang technology also invested 150 million yuan to invest in PE fund and set up a high-risk, high-yield private equity investment business.

The stock took the initiative to buy an extra large amount of 10 million 38 thousand and 100 yuan in August, and the initiative to buy a large amount of 19 million 751 thousand and 500 yuan, the stock price rose 0.35%.

Difficulties and problems are discussed in depth.

Meanwhile, at this meeting, several world famous enterprises will introduce their experience and achievements in production management, technology research and development, environmental protection and energy conservation.

With the development of chemical fiber differentiation and functionalization, the industry has put forward higher requirements for standards. The existing standard system has been unable to meet the needs of the development of the industry.

In addition, technical barriers to international trade are increasing, among which standards are very important technical barriers.

At present, the importance of chemical fiber standards is increasing in the world, and the lag of standards has affected the right to speak in international trade.

The standard forum was set up in this conference to explore the role of chemical fiber standards in the new trend and the requirements of innovation development, social responsibility, and the requirements of the world's chemical regulations on enterprises. Some typical cases of successful application of standards were analyzed, which is of great significance to inspire industry and enterprises to attach importance to standard construction.

The conference set up "functional fiber and textiles", "new materials and emerging strategic industries", "market outlook and sustainable development" and "chemical fiber".

"Internationalization" and other four thematic forums, the industry technology innovation strategic alliance enterprises and Japan's Tianjin People's company will carry out two special technical exchanges tomorrow.

Participants include representatives from the domestic and foreign chemical fiber industry and upstream and downstream industries, professional institutions, institutions of higher learning, scientific research institutes and well-known advisory bodies.

This high level conference will give them a deeper understanding of the development of the industry.