Textile and Apparel Industry: Prospects for Raw Materials and Products

The brand industry is in a period of gold investment and firmly believes that the local excellent public brands have brilliant prospects. According to the US apparel brand development, with the rise of the country’s economy and the improvement of the local brand’s operating capabilities, the local mass brand has a lot to offer. Under the background of emphasizing economic transformation, more brands will be listed on the market in the next 2-3 years, and the brand industry will face very good opportunities for medium and long-term distribution.

Brand apparel industry: sales are still high, the brand price increases. In the fourth quarter, apparel consumption gradually showed peak season characteristics, and this year, there may be “extremely cold”, which is also a favorable stimulus for winter sales. At the same time, the growth rate of orders for most brand companies will be better, providing guarantees for rapid growth next year; raw material costs have risen sharply, and market-based brand apparel companies have the ability to raise prices. Maintain the "recommended" investment rating of the brand apparel industry.

Valuation of Brand Apparel Industry: Through empirical studies of international and Hong Kong brand companies, PE is highly relevant to growth. PEG can generally be given a value greater than 1, which is more common in the 1-2 range. At present, relatively fast-growing companies in China generally have a 30% to 40% growth in performance, and it is reasonable for such companies to give a valuation of 30-40 times. At the same time, the valuation of future domestic companies will also be different. • Production industry: The Khmer price poses a great challenge to the operation of the industry. Exchange rate fluctuations are plaguing companies. As of September, the export growth rate of the textile and clothing industry showed a gradual recovery from the crisis. In the fourth quarter, accompanied by rising raw material costs, uncertainties in the European and US economies, rising labor costs and appreciation of the local currency, export companies’ expectations were mostly pessimistic. . Maintain "Neutral" rating.