Apparel Industry: Pformation Is Still In The Throes Of Cross-Border Breakthroughs Easier To Break Through

< p > recently we exchanged information with investors on the 2014 medium-term strategic report on peace textiles and clothing, "pition breakthrough", "cross-border breakthrough", and collected and collected the general concerns and feedback of investors.

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< p > < strong > > a href= "http://sjfzxm.com/news/index_cj.as > > industry judgement < /a >: pformation is still in the throes of pain," cross-border "is easier to break through < /strong > /p >

< p > we believe that the fundamentals of the industry have not improved significantly, and there is no chance of trend in the future, and the industry rating has been downgraded to "neutral".

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< p > first, terminal consumption continues to be sluggish. In the first half of the year, the total retail sales volume of the wholesale and retail enterprises has gone down to a higher level.

Two, from a fundamental point of view, since 2014, although some sub sectors' performance growth has been differentiated, the turnover of inventory has not improved, indicating that it is only a small cycle of stock entry, and the improvement of men's wear, leisure and footwear sector is narrowing.

This shows that the supply chain reform is still not yet coming. Clothing brands are in the tangle of the old and new models, and the reform is still a long way to go.

The three is from the growth rate of orders in 2014, the home textile plate has upward trend, leisure has signs of stabilization, the other has not improved significantly, indicating that the overall performance of the clothing sector will remain under pressure.

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< p > in the weak market environment, the performance of the clothing sector is difficult to achieve good performance, and "cross-border" instead of two aspects of valuation and performance to break through, with greater room.

We also believe that this "cross-border" trend will also become an important development model in the future.

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< p > < strong > < a > href= > http://sjfzxm.com/news/index_cj.as > > /a > Company communication feedback < /strong > /p >

< p > in the choice of target, we tend to have two stock selection logic.

The first is the home textile plate, which is the turning point of performance, the home textile and fuanna of Luo Lai; the two is the "cross boundary" brand that breaks the bottleneck and seeks for greater development space -- maishin culture and Pathfinder.

In the manufacturing sector, we tend to choose from the bottom up the industry of technology, which is still growing in niche market, rising in market share and strong in strength.

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< p > investors' interest and feedback are different, generally speaking, they are more interested in "cross-border", while traditional brands do not think they are flexible enough.

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< p > investors are more concerned about Maison culture. The main problems are focused on the strategic layout of domestic cultural layout and the success of IP original + derivative development.

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Pathfinder is still one of the investors' concerns, but the slow growth of its main business and the deep integration effect of the P network need to be observed continuously.

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< p > investors are more recognised by the performance of the home textile board represented by Luo Lai and Fu Anna. However, due to their lack of flexibility, their performance is more than 15%, so they are more defensive.

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< p > investors are less concerned about Xingye technology, but we think there may be opportunities for stricter environmental policies.

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P > < strong > < a href= > http://sjfzxm.com/news/index_cj.as > risk < /a > < /strong > < /p >.

< p > economic environment and consumption are deteriorating further. Brand pformation efforts and time are lower than expected.

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The conformity effect of < p > "crossover" is lower than expected.

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