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China clothing significantly outperformed broader market.

  1. ruby101

    1,247 Posts.

    This year, the textile and apparel sector as a whole also significantly outperformed the broader market.


    With the arrival of the Chinese New Year season, the textile and garment sector's recent performance rather "rosy", elegant birds(603555.SH), Changshan shares(000158.SZ) and Shenda shares(600626.SH) rose since 2015 in more than 30%, the performance was well ahead of the broader market.
      This year, the textile and apparel sector as a whole also significantly outperformed the broader market. Over the same period, the Shanghai index rises to -0.03%, while the SWS apparel sector as a whole rose by 11.46 percent, ranking in all the plates in.
      So, the total gives "tepid" such a strong impression rose reasons for the textile and apparel sector?
      Hot from the market point of view, the recent sports-themed popular these days, the textiles and clothing sector due to a number of companies involved in the sports business, so extra attention; moreover Younger(600177.SH), Sea Orchid House(600398.SH) and other companies due notice of outstanding performance, but also led the sector rose.
      Now, in the textile and apparel industry demand slowdown stabilized in the background, the industry is the accumulation of positive factors, on the one hand, the domestic cotton prices fell to nearly five years in the last year lows; on the other hand, the textile export tax rebate rate to further improve . In addition, devaluation beneficial textile exports.
      Cotton is the most important cost of textile enterprises, cotton prices fell, directly bring good for garment enterprises. Data show that by the end of March 2014 to cancel the cotton purchasing and storage policies, Chinese cotton price index for 19,534 yuan / ton, the end away for 13,605 yuan / ton, up 30.4 percent decline in recent cotton price is close to the lowest since 2008.
      According to the Ministry of Finance's policy, from January 1, 2015, increase the tax rebate rate of some textile and apparel products, transferred 17% of the original 16% to achieve a full refund. Tax reduction to help improve the profitability of exporting enterprises.
      So, what's textile and garment sector stocks worth investors? First Financial "Financial Business" reporter tried to past performance, recent performance forecast and other financial data, combined with the company's competitive advantage, such as screening, to see what a listed company more "money scene."
      First, select the "transformation most Aspect" of the company - Carolina textile(002293.SZ), the company expects 2014 full-year earnings growth rate is 0 to 20%, although the relatively flat, but the company launched a cost-effective and popular household brand "Le excellent home" in the consumer downturn phase, strategic transformation direction worthy of attention.
      As a traditional company, its performance in terms of electricity providers have also been concerned about the company's 2014 electricity revenues exceeded 400 million yuan, of which LOVO sales accounted for more than 90%, an increase of 50%. Although many companies have made the transition towards electricity supplier, but for now, Carolina layout in this area is quite effective.
      Secondly, is "the most hot spots effect" of the company - Pathfinder(300005.SZ), SBS shares(002098.SZ) and elegant birds.
      Main outdoor products Pathfinder although GEMOf a company, but the company's performance can be quite stable in recent years, the basic maintenance of 20% to 30% growth. Also by virtue of its excellent performance, enter the First Financial "financial business" and "30 good financial company" in.
      The company currently, and other companies to jointly launched a total size of 3 yuan sports industry buyout funds, marking the company to extend the layout of the sports industry will be officially opened. At present, when it is hot sports concept, the company layout sports chain, naturally receive more attention.
      SBS shares due to the company's basketball has been widespread concern in the market resources, the major shareholder owns patrol Star basketball club. In addition, the company's current market value is characterized by a relatively small, but with the rise in stock prices, the company's price-earnings ratio is not low.
      Elegant birds present layout in the field of sports can be described as positive, the company and ESPN signed a "strategic cooperation framework agreement", the proposed sports industry funds.
      Finally, the performance of most elected Aspect companies - Sea Orchid House. The company expects earnings growth rate last year was 1550-1600 percent, which in addition to the reorganization merger factors, but also because of the company's main growth is faster.
      In addition, the performance is also very good Younger, last year net profit rose 120% to 150%, mainly due to cash financial assets.

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