Research Weekly On Textile And Garment Industry

We are still optimistic about the development prospects of the textile and garment retail sector. We always suggest that we should focus on the seven wolves, Weixing, good bird, Luo Lai, Fu Anna and Meng Jie, who have excellent performance and high reliability, and suggest buying and holding medium and long-term investment strategies.

Recently, these stocks have been adjusted to some extent, bringing about rare opportunities for long-term intervention.

As cotton prices have great impact on the prices of polyester, viscose and spandex, we believe that investment opportunities for polyester, rayon and spandex related enterprises are yet to come.

We expect cotton prices to determine the future direction in the 2 quarter of next year. If the cotton prices fall in the 2 quarter of next year, the medium and long term will be conducive to the development of the real economy. The sharp fluctuations in short-term prices will lead to the reduction of chemical fiber prices. Only when prices stabilize, will the relevant stocks have investment opportunities. If the cotton price rises in the 2 quarter, the polyester, spandex and viscose will rise in price, and all the related stocks will have the opportunity to intervene.

At present, textile raw materials are in the traditional off-season, demand is not strong, and product prices fluctuate little.

In the past two weeks, all kinds of chemical fiber products have shown that raw material prices have risen or remained flat, and the continuous decline of product prices has further reduced the profit margins of enterprises.

Cotton prices rebounded in the past two weeks, but the 40S yarn index continued to fall.

At present, because of the traditional off-season, the price of raw materials may still fluctuate in a narrow range in the future.