Since the beginning of this year, the textile and apparel sector has performed well, with the overall stock price rising by 18.99%, far outperforming the Shanghai Composite Index during the same period (a cumulative decline of 1.36% during the year), ranking at the forefront of the Shenwan primary industry growth list.
Among them, Jinhong Group’s stock price rose the highest in the industry, reaching 316.15%; followed by Zhongyin Cashmere Industry’s stock price rose 179.25%, Fafa Rabbi’s stock price rose 171.77%, and Meibang Apparel’s stock price rose 169.03% , *ST Global’s stock price rose by 133.98%, Langzi’s stock price rose by 115.27%, and *ST Rasha’s stock price rose by 113.01%, all of which doubled their stock prices during the year.
In addition, the stock prices of six companies, Yingfeng Shares, Zhejiang Nature, Peacebird, Ribo Fashion, Baoxiniao and Biyinlefen, all increased by more than 50% during the year, among which Yingfeng Shares The stock price rose by 70.59%, Zhejiang Nature’s stock price rose by 67.42%, Peacebird’s stock price rose by 67.35%, Ribo Fashion’s stock price rose by 64.61%, Baoji Bird’s stock price rose by 56.81%, and Biyinlefen’s stock price rose by 50.25%.
“Since the beginning of this year, the textile and apparel sector has experienced a major rebound. The main reasons come from two aspects: on the one hand, because the domestic epidemic situation is better than that abroad, many foreign orders have returned to the country; On the other hand, the Xinjiang cotton incident has accelerated the rise of domestic clothing brands. China is both the largest textile and clothing producer and the largest consumer, but most international brands are in Europe and the United States. The main reason is that our marketing and management cannot keep up. But now the self-media era has subverted the traditional marketing model and given us the opportunity for domestic clothing and textile companies to rise rapidly.” said Liu Youhua, research director of Private Equity PaiPai.com.
In the view of major securities firms, the recent release of the “Textile Industry “14th Five-Year Plan” Development Outline” is a huge benefit to the textile and apparel industry, giving it a certain sexual growth. Industrial Securities believes that with the development trend of digitization and full-chain informatization of the textile and apparel industry chain, companies will be able to better connect various links in the supply chain and achieve inventory management and precision marketing. At the same time, with the trend of smart manufacturing leading the way, brand apparel companies will see a turnaround in the growth of domestic brands in the second half of this year. Textile manufacturing will also usher in a period of capacity saturation due to the impact of Indonesia’s transfer of orders. We are optimistic that the sector will usher in structural growth in the second half of the year.
Liu Youhua also said, “The ’14th Five-Year Plan’ for the textile industry has pointed out the direction for the intelligent development of the textile industry and laid the foundation for the high-quality development of the textile industry. In the future, as The advancement of the industry’s intelligent development process will help improve the production efficiency of the textile industry, reduce production losses, and reduce production labor costs, thereby improving the overall performance of the textile and garment industry.”
Facts On the market, funds have also begun to invest in some textile and apparel stocks this year. Statistics show that since this year, a total of 17 textile and apparel stocks have shown a net inflow of funds, attracting a total of 3.928 billion yuan in funds. Jujie Microfiber and Xinhe were the most popular stocks during the year, reaching 768 million yuan and 175 million yuan respectively. Two stocks, including Zhenai Meijia and Watson Technology, both received large orders of more than 100 million yuan during the period.
Wang Xuan, chairman of Chengen Capital, said, “‘National Trend’ has boosted the reputation and positioning of several major domestic brands in the minds of consumers. In the recent ‘618’ e-commerce event, In the promotion activities, the growth of local sports brands is very eye-catching, and it is also an important catalyst for the recent rise in the sector. We are optimistic about the leading sportswear companies in textile and clothing in the long term. In addition to the leaders, we can also pay attention to the second-tier high-quality textile and clothing companies with lower valuations. .”</p
