Textile stocks: positive expectations are strong and vitality is beginning to emerge
There are only two trading days left before the Spring Festival holiday. As the holiday approaches, the wait-and-see atmosphere in the market is getting stronger and stronger. On Wednesday, the Shanghai Composite Index gained and lost the 2,000-point mark, the enthusiasm for chasing prices disappeared, and the rapid decline of hot spots was the main reason. However, textile stocks performed strongly yesterday, with Huafang Textile, Vosges and others showing strong trends.
Since last year, affected by the expanding impact of the financial crisis, my country’s textile industry, as the industry leader, has faced huge difficulties in exporting. However, textile stocks have performed well so far this year. Statistics show that as of January 21, the textile and apparel index has increased by 14.13%, while the Shanghai Composite Index has increased by 7.35% during the same period. Why do textile stocks have trends that are contrary to their fundamentals? As one of the top ten industrial revitalization plans in my country, the market has very strong expectations for the recent introduction of the textile industry revitalization plan. It is under this expectation that textile stocks took the lead in pulling up the market strongly.
Although the stock indexes of Shanghai and Shenzhen stock markets are still fluctuating at low levels, textile stocks represented by Huafang Textile and Golden Eagle have recently bucked the trend and risen. The strong characteristics are quite obvious, and there are expectations for the introduction of strong policy measures. This should be the main reason why textile stocks continue to be active.
Exports are blocked and policy support is urgently needed
Our country occupies an important position in the layout of the textile industry. The industrial scale and supporting advantages formed by our country’s textile industry through technological progress cannot be easily replaced. With the gradual decline in the export-oriented degree of my country’s textile economy, the domestic demand market has become an important market for my country’s textile industry. Factors such as the huge growth potential of industrial textiles, unbalanced regional development, complete industrial supporting facilities and the continued growth of total social retail sales have achieved the goal of expanding domestic demand. Wide space.
However, since last year, affected by various factors, the development of the textile and garment industry has been difficult to say. Export data shows that in 2008, except for January and March, when the rebound after the snowstorm caused export growth to exceed double digits, textile and apparel exports basically grew at single-digit rates in the remaining months. The export growth rate of the apparel sub-sector was It is even less ideal. There have been five months of negative growth throughout the year. From October to November, there may be a slight improvement due to overseas Christmas factors, but it is still single-digit growth. In view of the important position of the textile and garment industry in the development of my country’s national economy, the country has intensively introduced policies and policies for the development of this industry since last year, in order to reverse the current unfavorable situation.
In fact, relevant national departments have increased the export tax rebate rate for textile and apparel products several times in a row to further ease the cost pressure on export-oriented enterprises. There is no doubt that the introduction of industrial planning will have a profound impact on the future development of the textile and apparel industry.
Some industry researchers believe that the textile industry originally has meager profits, and any favorable policy will have a huge impact on the industry. If the export tax rebate rate is increased by 3%, it will bring a 25.84% profit increase to the textile industry. It can be seen that with the continuous introduction of favorable policies, the development expectations of the textile and apparel industry are expected to improve, and it will be possible for an inflection point to appear as soon as possible.
The valuation is not high and industry leading opportunities are revealed
In the future, the textile and apparel industry is expected to achieve survival of the fittest and industrial transformation after experiencing pain. Some companies with strong overall competitiveness and complete industrial chains will obviously benefit from the industry reshuffle process. Judging from the current valuation levels of listed companies in the industry, regardless of price-to-book ratio or price-to-earnings ratio, textile stocks are at historically low levels, and the valuations of some key companies have been lower than historically low levels. Taking into account the non-cyclical characteristics of the industry, valuation levels and continued favorable policies, it will be possible for listed textile and apparel companies to bottom out and rebound. In terms of operation, it is advisable to choose companies with reliable fundamentals, defensive performance and safe valuations. Among them, brand retail companies with domestic sales as the main focus and industry leaders with relative monopoly advantages, such as Xiangxiniao, Lutai A, etc. Pay appropriate attention.
AADFGRTJUYKYU
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.
AA
