Textile And Clothing: Prices Of Raw Materials Are Falling, Terminal Demand Is Still Weak.

This week's point of view.

This week, the price of raw materials has dropped significantly during the peak season. We believe that the main reason is still insufficient domestic demand, coupled with a bumper harvest in the US and cotton, and the upcoming new cotton market in China, which will suppress the price of cotton and chemical fiber.

From the demand side, retail data are still in the downturn in recent months, and the 7 and 8 months for the traditional off-season fundamentals are at the bottom of the bottom.

This week, we continue to focus on recommending the Pathfinder. We also suggest that we should pay attention to the excellent quality, the fundamentals and the pformation of the company with a certain direction (including the integration of industries, the integration of industries, and cross industry integration), such as Semir clothing, fuanna, Luo Lai home textiles, etc., and the seven wolves, Jiumu Wang and Hinur, who have the fundamentals and have expected to buy and buy. From the point of view of theme and hot investment, we are looking for companies with pformation power in the textile manufacturing sector.

Stock portfolio.

The combined growth rate of the previous period was 2.44%, and the combined industry outperformed the industry index by 0.85 percentage points.

This week, the industry stock pool remained unchanged: the Pathfinder (40%), Semir apparel (20%), Luo Lai home textile (15%), fuanna (15%), and search special (10%).

Industry performance review.

Last week, the Shanghai Composite Index, Shenzhen Composite Index and Shanghai and Shenzhen 300 rose by 2.53%/2.24%/2.45% respectively.

Textile and apparel rose to 2.94%, 3.62% of which rose by 1.57% and brand clothing increased by about 1.57%.

The first five companies were four seas shares, Shandong Ruyi and maishon culture, and the top five companies were Kaiser shares, Maison, and Saturday.

Announcement of important company.

The A share listed companies: the "Nu" card Nu Di Road (part of the controlling shareholder's stock relief pledge); Maison culture (part of the controlling shareholder's share lifting pledge); Luo Lai home textile (wholly owned subsidiary buying bank financial products).

Overseas listed companies: Nike, Nike (first quarter earnings increased by 23.5% over expected); Uniqlo UNIQLO (expand children's wear series, 60% shops will be available); Prada (Credit Suisse and Barclays reduce target price to HK $45 below HK $).

Company tracking.

Saturday (002291) research summary.

Important information in the industry.

The main points of the nine Executive Council of the two cotton association of China were summed up: in August, the import of cotton yarn in China decreased by 26% compared with the same period last year, and the yarn output increased by 9.96% compared with the same period last year.

Raw material data: Cotton: 328 spot spot weekly average price 16299.80 yuan / ton (-3.37%); Cotlook A:71.06 cents / pound (-4.48%); chemical fiber: viscose staple fiber 12010 yuan / ton (-0.58%), viscose filament 35100 yuan / ton (+0.57%), spandex 40D45900.00 yuan / ton (-0.17%), spandex 20D57000.00 yuan / ton (-0.28%), polyester DTY11200.00 yuan / ton (-1.55%), yuan yuan / ton (E)

Risk warning: 1) terminal retail continued to slow down; 2) time needed for adjustment and pformation.