Textile Industry: Multiple Benefits To Improve Performance

The textile and garment industry is in the competitive industry, and industry policy has limited impact on performance.

However, in the "13th Five-Year plan" of the textile industry, which is basically completed, intelligent manufacturing and industrial fibers are expected to become the key direction of development.

Among them, industrial fiber is expected to maintain high growth rate of two figures, the industry growth space is determined.

Beginning in the second half of 2015, influenced by the Fed's rate hike expectations, the exchange rate of the RMB against the US dollar was abrupt, and it fell below the 6.5 integer threshold on the first day of 2016.

The industry believes that the continuation of the depreciation trend of the RMB in 2016 is a big probability event.

After many years of development, the middle and high-end textile manufacturing enterprises have accumulated the advantages of scale of production capacity, supporting system of industrial chain, R & D capability and large number of customers. Under the strong dollar background, the export of the industry will obviously benefit from the depreciation of the RMB, and the short-term competitive strength brought by the depreciation will enhance the export orders.

On the other hand, under the background of currency devaluation, the exchange gains and losses arising from the settlement of orders in US dollar will enhance the performance of the company.

Companies with relatively large export volume, stable orders and high gross profit margins in the main industry will benefit first, such as Lu Tai A, Dayang creation, Fu Tian shares, and Baron East.

In addition, the continuous rise of domestic labor costs is also accelerating the pace of the textile manufacturing industry. It is estimated that some of the industry's leading low end capacity will shift to Southeast Asia in 2016 and seek overseas tariffs and low cost advantages.

Behavior will continue.

Facing the considerable market prospect, clothing brand enterprises are accelerating the layout.

The leading brands of existing industries are mostly in the benign development stage driven by extension expansion + endogenous growth.

With the increasing emphasis on the safety, comfort, fashion and compatibility of children's clothing, the industry share is gradually concentrated on the leading brand companies.

The "she economy" around the huge consumption market of women is another hot spot of pformation.

According to statistics, the number of female consumer groups in China has reached 480 million, and this group of consumers has more income and more opportunities.

"Her economy" related consumer industries involve a wide range, and the market capacity is at least 5 trillion yuan, which is expected to become a draught for the continuous growth of the consumer industry in the future.

2015 textile and

The low cost is expected to benefit the industry leaders in 2016.

In 2015, with the temporary withdrawal and storage policy of cotton temporarily withdrawing from the historical stage, the average price of cotton dropped to about 14000 yuan / ton from the time of collecting and storing 19000 yuan / ton, while the international oil price also fell off cliff type. This made some enterprises that purchase large quantities of raw materials with high price in the early stage of losing money. In the four quarter of 2014 and the first quarter of 2015, their performance was at a low point.

With the high priced inventory digested, the industry cost is expected to improve in 2016.