Men'S Performance Steady Growth Prospects Can Be Expected

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From the perspective of sub sectors, outdoors products, women's wear and some brand menswear companies outperformed expectations. The overall performance of men's clothing companies was in line with expectations; casual wear and home textiles were slower than expected.

In addition, orders for export manufacturing companies are still poor in the first quarter, although they have improved compared with the fourth quarter of last year, but the quarterly net profit growth has dropped sharply compared with the same period last year, and the performance is lower than expected.

There are four main factors that result in the differentiation of sub sectors in the current quarterly report:

First, the different development stages of each sub industry's own life cycle determine the external environment of the company's development.

For outdoor products and middle and high-end men and women's clothing, they are still in the initial stage and growth stage of the industry. The competition pressure in the industry is relatively small, the scale of revenue is growing rapidly, coupled with the company's own level of cost control, accurate brand layout, planning ideas and sound channel development capabilities, it is also the support for the company's performance in high-speed expansion.

Second, the pformation from wholesaler to retailer.

Through the existing

In the study of business models and development history, we think that the final winners will be those who focus on improving brand added value and premium capability to "do retail" rather than simply compete through the price to run "wholesale" Brand Company.

Third, the level of inventory in various sub sectors is also one of the main factors that affect current performance and determine future growth.

We believe that the high inventory of channels is the overdraft of the future capacity of the channel, which directly led to the quarterly performance of home textile companies lower than expected, which also caused the company to be in the process of digestion channel inventory in 2012.

In line with home textiles, the overall distribution level of men's clothing industry is stable and healthy, with an average annual growth rate of 20% to 30%, so that channel inventory has always maintained a healthy and sustainable development trend.

Finally, the rainy season in the first quarter of this year, the early spring festival and the weakening of the overall economic environment also indirectly affect terminal retail, thereby affecting the company's performance in the first quarter.

As for the future investment strategy, the terminal sales in March showed signs of recovery. We expect that the trend of recovery of clothing consumption will continue in the future under the promotion of factors such as consumption promotion month.

At present, the valuation of the industry is at a historical low. With the resurgence of terminal sales, the investment value of garment enterprises will gradually appear in the future.

Is still the most robust growth performance, the current order will be high growth rate determined, the annual performance can be expected.