Views On Investment Opportunities For Shoes And Clothing In 2016

The overall performance indicators of the industry are still at a low level, and the overall recovery is still in time.

In 2015 1-10, the performance indicators remained low, and the overall performance was hard to recover.

Retail sales growth in the second quarter bottomed out in the third quarter, and the export situation continued to slump; industry revenue growth and total profit growth continued to slow down; profitability declined slightly.

 

Footwear, men's clothing and home textiles in the sub sectors took the lead.

From the three angles of growth, profitability and operation ability of various industries, we believe that footwear, men's clothing and home textiles have shown signs of recovery. Operating income and net profit have shown a trend of rapid and steady growth. Profitability has been significantly improved in terms of gross margin and internal efforts to control costs. Inventory and receivables have increased liquidity and the rate of repayment has increased.

The pformation is expected to be strong, and the cumulative gains of the first half of this year are ahead.

Since the beginning of this year, the total number of shoes and garments textile plates has risen to 77.82%, which has substantially outperformed the Shanghai Composite Index by 69.86 percentage points, ranking second in the 28 industry sectors of Shen Wan.

The reason for the top ranking of shoes and garments textile plates is that many companies in the industry have carried out the restructuring of their shoes and garments, and the strategic layout of the cross industry.

Such as: cross border, AOKANG international layout of cross-border electricity providers; Hua Si share layout micro business; Pathfinder, the layout of big bird sports ecological circle; the layout of Internet birds; the layout of intelligent home, Semir clothing, blonde Bela layout baby industry.

For the plate 2016 investment opportunity view: at present, the overall price to earnings ratio of the shoes and garment textile sector has reached 40 times, which is relatively high in the past 5 years, only 60 times that of June this year, and the valuation level is still high.

But in 2016, in the background of the recovery of the basic mask of textile and clothing industry, the pformation and upgrading of the industry (cross border electricity supplier shoes and clothing textile finance, outdoor sports, fashion industry, mobile social networking, baby industry) and the deepening of the reform, we still optimistic about the trend of the textile and garment industry in 2016, focusing on cross-border e-commerce, baby industry and the theme of big sports investment.

In terms of stocks, cross border pass, AOKANG international and Pathfinder buy rating were given to "birds of honor" and Semir dress "overweight" rating.

Risk warning: short term stock price callback pressure; performance recovery is not up to expectations; restructuring efforts are not as good as expected, and performance improvement after pformation is less than expected.