Textile And Garment Industry: Textile And Garment Exports Rebounded In January

Recent key data review: 1) textile and garment exports picked up in January.

In January 2019, China's textile and garment exports amounted to US $25 billion 60 million, an increase of 8.45% over the same period last month, an increase of 8.4% over December ($23 billion 120 million).

Textile exports amounted to US $11 billion 410 million, an increase of 14.2% over the same period last year, and clothing exports amounted to US $13 billion 650 million, an increase of 4% over the same period last year.

2) the consumption of high-end clothing in China continues to grow.

From the disclosure of overseas luxury goods companies, the LVMH company achieved 15% organic growth in the 4 quarter of 2018 in the Asia Pacific market except Japan. Hermes has achieved 13.1% growth in Asia Pacific market except Japan, and its growth rate is at a relatively high level in the historical range.

In January, the peak of the Spring Festival consumption was misplaced, and the performance of public clothing was good.

In the long run, we believe that consumption will become the first engine of economic growth and continue to look for investment opportunities for medium and long term consumer goods.

From the perspective of foreign capital allocation, we further benefit the leading and competitive public leaders. We recommend that the valuation is at the bottom of the historical zone: the company has changed positively since the second half of 2017, and many new strategies such as emerging brands and overseas market expansion have come into being.

We believe that the company's next five years' continuous repurchase plan will highlight its leading role. The valuation is at the bottom of the historical section. In 2017, the dividend yield was as high as 4.95%.

High end consumption continues to grow, and we continue to recommend high-end brands with high quality subdivision tracks.

It is the fastest growing quality product in the clothing industry. In 2018, it increased the same store, expanded the channel and made great efforts in its performance.

We believe that the company has a high quality track in the high-end casual wear field, and the company has strong barriers for many years.

In September 17th, we released the industry's in-depth report, and put forward the high-end leisure wear market with sports attributes, which has broad market space, growing tens of billions of dollars in market value, and the number of RaphLauren outlets worldwide.

We expect the company's composite growth rate in 2019 and 2018 to be over 40%, giving 25 times the target value in 2019, compared with the current 40%+ space.

We believe that the leading edge of the electricity supplier sector is continuously strengthening, and it is expected to continue to grow in 2019.

The key recommendations: 1) 1) the improvement of the operation quality of the 3 quarterly report of cross border Tong. The single quarter revenue and profit of the company increased by 86.7%, 78.1%, at the same time the bargaining power was increased, the accounts payable period was extended, the accounts payable were increased by 440 million yuan in the single quarter, and the net flow of cash flow in the single season was 310 million yuan, and the management quality was improved over the market expectations.

We firmly believe that the core competitiveness of the company will continue to strengthen, and achieve higher quality growth in the peak season.

2) the GMV of Antarctic electricity supplier is growing rapidly and its advantages are constantly strengthening.

The electricity supplier industry is facing a downward trend in consumption and a slowdown in online traffic growth.

The core competitiveness is strong, the ecological chain construction is perfect, and the positioning based on high cost performance is in line with the current development trend.

We are optimistic that the market share of the core commodities of the company will be further improved, and the growth of new products will be good. In 2019, we are expected to further enhance the quality improvement and quality control.