Industry Tracking Analysis Report: Focus On March Brand Clothing Ordering Meeting

Industry perspective textile sub industry: the latest survey by Hongkong Trade Development Bureau shows that Hongkong's TDC's export index in the first quarter of this year is 43, which has picked up compared with 40.6 in the fourth quarter of 2011. However, below 50 still shows that the overall export in this quarter is still weak. Hongkong's exports as a bridgehead for China's exports can reflect China's export situation to a large extent. Therefore, for textile sub sectors, we are still in a downward trend, and 2012 Q1 will be the judgement of the low performance of the leading companies in the manufacturing industry.

But we think that the weakness of the industry will further aggravate the competition in the industry, and the leading enterprises in the industry will take advantage of their brand, scale and policy advantages to surpass the industry, thus forming the stronger pattern of the stronger.

Therefore, from the point of configuration, we continue to recommend Lu Tai A.

Brand clothing sub industry: Recently, the major brand clothing has been held for 2012 autumn and winter ordering period. We suggest that we actively pay attention to the order meeting.

Although the overall growth rate of the garment industry will be reduced under the slowdown of economic growth, we believe that the industry will be differentiated. Some strong brands will continue to maintain high growth through channel advantages, product advantages and the first mover advantage of the brand.

Therefore, we recommend that we continue to pay attention to the seven wolves, nine herd kings, good news birds, and Luo Lai home textiles, fuanna, and fast fashion industry. We are concerned about the Q1 performance that is expected to maintain high growth.

This week, the Shanghai Composite Index fell 1.42%, while the textile and garment sector (SW) edged up 0.38%, with the decline of 1.59% in the textile sector (SW) and 1.99% in the apparel sector (SW). This week, the textile and garment sector overall outperformed the index by about 1.80 percentage points.

The companies we focus on, such as Mei Bang dress, Meng Jie home textiles, Hinur, Luo Lai home textile, fuanna, cashmere industry, cnndi Road, nine Mu Wang, Pathfinder, wedding bird, seven wolves and search at the top, have gained 8.25% or 5.91%, 5.66%, 5.24%, 5.24%, 4.69%, 4.53%, 4.02%, 3.91%, 3.70%, 3.11% and 3.11% respectively.

Risk warning: the economic recovery in Europe and the United States has repeatedly affected export demand; in 2012, the consumer confidence has fallen beyond expectations and the risk of terminal inventory has increased.