Textile And Apparel: July Retail Data Improvement Continues, Pay Attention To The Four Main Line

Trend review.

Last week (August 8th ~8 12), Shanghai Composite Index rose 2.49%, Shenzhen Composite Index rose 1.8%.

The plate rose by 0.81%, of which the textile sub sector dropped by 0.52%, and the home textile sub sector rose 1.42%.

The top three of the key stocks in the spinning and finishing industry were the expensive birds, nine dragons, the 5.65% (5.59%, 4.15%), and the latter three were goring, Hua Fu color spinning and Sanfo outdoor (-6.12%, -2.14%, -1.93%).

Industry information.

In 1.7 months, 50 key retail sales increased by 1.3%; 2. Daphne continued to make losses; the 3. largest duty free shop in Shanghai will officially open; 4. HASBRO's new quarter revenue increased 10%; 5.HugoBoss second quarter net profit fell 84%;

This week's point of view.

Retail sales in July continued to improve: 50 key large ones in July

Retail sales grew by 1.3% over the same period last year, and the growth rate increased by 1.5pct compared with the same period last year, rising by 1.0pct compared with the same period last year, and the second monthly growth rate of 16 years.

From the 50 data, the overall performance of the data in July is stable, and signs of warming are emerging.

In the current market situation, it is recommended to focus on the following four main lines:

1., we should continue to focus on the quality of white horse products with reasonable growth performance and reasonable valuation. The weak environment market has a low investment preference, and the quality value varieties are more attractive and safe, focusing on Yonghui supermarket, Semir clothing and Hai Lan's home.

2. underestimate the value and asset value of rammed varieties to usher in value revaluation: driven by the recent commercial real estate sector's placards effect, the asset value of the retail sector is expected to benefit from the ramming variety. It can be concerned about the Eurasian Group (16 times PE15 times) with a steady business performance, a high proportion of its own property, and an incentive mechanism in place. The yield continues downwards, and the A share market has a low risk preference. It is recommended that the Wangfujing with high dividend yield (16 PE15 times) be recommended.

3. country reform is expected to continue: focus on Shanghai (Lan Sheng shares, Lao Fengxiang), Hubei (China 100 group), Guangdong, Anhui and other areas to promote;

4., the performance of the electricity supplier has exceeded expectations: last week, the latest performance of Ali and Jingdong exceeded expectations, the traffic dividend period has passed, but the giant development bonus of the new industry structure is still continuing. Ali and Jingdong still have great potential for development in their respective paths. In the long run, it is the two most important business platform with the most visible and investment value. Besides, the brand e-commerce service market in the subdivision is still in the bonus period. It is recommended that the leading service providers represented by Bao Zun electric car and Bai Qiu network should be concerned.

Textile and clothing retail August combination: (textile and clothing) Huafu color spinning, Luen Fat shares, Semir clothing, Hai Lan home; (commerce retail) Yonghui supermarket, new Nanyang, Qin Shang photoelectric.

Cotton spinning faucet (Huafu color spinning, Luen FA shares); 2. performance growth determined, reasonably valued value varieties (Semir costumes, Hai Lan House); 3. "new consumption" and pformation investment opportunities: net red economy (Sports shares), sports consumption (noble birds), pformation varieties (nine herding king, Weixing shares); trade and industry concern: 1. core competitiveness prominent growth firms (Yonghui supermarket) 2. undervalued, asset value ramming varieties (Eurasia Group, Wangfujing); 3. gold plate investment opportunities (Lao Fengxiang); 4. education listed companies recommend K12 line training / vocational education / international schools and other sub fields (New Nanyang, Qin Shang optoelectronics, Oriental Fashion). Textile and apparel industry concerns: 1. cotton prices rise, plus depreciation of RMB good.