Textile Weekly: Frequently lower than expected in a quarterly report

1. Maintain industry cautious recommendations. Last week, China Commercial Network announced the data of 100 key large-scale retail enterprises in the country in the first quarter of 2014. The cumulative increase in retail sales was 1.4%. The growth rate slowed down by 6.2% year-on-year, slowing for the third consecutive year, and the lowest growth rate in the same period since 2005. The end consumer environment is still sluggish. From the long-term perspective, we still maintain Fiyta (its own brand driving stable growth, low total market value, stock price is at the bottom), Semir apparel (look for the development of children's wear field, the growth target in apparel stocks), Pathfinder (online Rapid development will depend on industry consolidation and development in the long-term, as well as the construction of the “outdoor travel comprehensive service platform” centered on Green Fields, and the Hometown of Haishu (Continuation of channel expansion, increase in buyout patterns, change in proportion, 2016 Post-new growth drivers still need to be observed), Fu Anna (well-managed, stable performance, low valuation) recommended rating; from the perspective of performance flexibility, we continue to recommend the good news. Among production enterprises, we first introduced Luthai A (although the quarterly report was lower than expected). With the opening of overseas expansion under the global competitive position, the recent depreciation also contributed to the company's performance. From the recent trend of cotton prices, the price of inner cotton has further declined, and at the same time, the price of cotton inside and outside has rapidly narrowed (especially in long-staple cotton, the price of overseas long-staple cotton is firm, and the price of domestic long-staple cotton continues to fall), taking into account the overseas fleece The price of cotton is also falling in the channel, which is bad for the short-term performance of Huafu Color Spinning Co., Ltd. and Blum East. However, considering the elasticity of performance in the next 2-3 years, we maintain our recommendation for Huafu Color Spinning for the whole year.

2. The performance of the sector was reviewed last week. Last week, the Shanghai Composite Index continued to experience a wide range of declines, with a cumulative decrease of 2.94%. The overall decline in the spinning and clothing segment reached 6.25%, of which textile manufacturing fell by 6.34% and apparel and home textiles fell by 6.16%. Individual stocks, the first three companies led the search for the special (Yearly quarterly report data bad), Jiangsu Sunshine, Hongda Hi-Tech, led the first three companies for Huafang Textile, Jin Feida, Jiaxin Silk (Xia Xin silk thick Square began to rent. Hong Kong stocks, led by Rainbow Textiles, Yue Yuen Group (annual report data bearish), Daphne International (up last week, this week's fall); led the top three companies for Li Ning, 361 degrees, Samsonite (annual report and quarterly report data is good) .

3, the company's important announcements and dynamic tracking. Dynamic Tracking - FIYTA: Self-owned brand enters the harvest period, boosting overall performance over expectation; re-emphasizing the recommendation rating of the company; MELBOURNE Apparel: O2O strategy in-depth advancement process; LUO Lai Home Textiles: After joining the clear inventory, the main brand resumes growth; Di Lu: The influence of anti-corruption continued, and the proportion of agency brands increased in 14 years; Mengjie Home Textiles: Profit from management improvement rebounded sharply, the bottom of the stock price rebounded by 50%; Septwolves: Leverage recovery, performance decline exceeded market expectations, investment opportunities still need to wait Sou Yute: The income declining trend continues, and the investment time still needs to wait; Luthai A: One-quarter earnings are dragged down by the delivery delay, and the full-year net profit is expected to remain unchanged; maintain the recommendation; Weixing shares: order rebound, increase in gross profit margin , Three fees reduced, and low base, jointly driving Q1 net profit increased significantly year-on-year; Hangmin shares: price increase, driving income growth exceeds expectations; Lianfa shares: printing and dyeing cloth increased significantly, driving annual report higher than expected, subsidiary continued to lose money This led to a lower-than-expected quarterly report. Important Announcement - Jihua Group: 13th year net profit rose 13.35%; Announcement: The main brand goods policy changes, 13 years do not enjoy income tax benefits; Goodbaby International: 13 years of Chinese market revenue increased by 4.2% year-on-year; Samsonite: 13 annual net profit Rose 18.6%; Yue Yuen Group: 13 year net profit decreased by 7.1% year-on-year; Zhou Shengsheng: 13 year net profit rose by 24% year-on-year; Changxing International: 13 year net profit fell 50.5% year-on-year.

4, the industry important data. Raw materials: (1) The average spot price of the 328 spot week is 18057 yuan/ton (-2.25%); Cotlook A: 93.57 cents/lb (+0.57%); the average cotton price difference between inside and outside is 1897 yuan/ton (-20.57%); long Cashmere cotton (grade 137): 32,300 yuan/ton (-0.92%). Imported long-staple cotton (US PIMA Level 2): ​​30,953 yuan/ton (+0%). US dollar exchange rate: 6.2536 (+0.48%) (2) Chemical fiber: polyester short 8897 yuan / ton (+0.20%); spandex 40D49000 yuan / ton (+0%). Industry data: In March, retail sales rose by 1.3%, clothing increased by 3.9%, cosmetics by 0.6%, and gold and silver by 13.5%.