Entering 2010, the export volume has increased substantially in line with expectations and will continue to grow in the future. In the first April of 2010, the cumulative export value of textiles and apparel increased by 15.53% year-on-year, basically in line with our expectations. At present, the growth rate of textile exports has continued for 7 months faster than the growth rate of clothing, which shows that as international demand (especially in Europe and the United States) has begun to improve, the prosperity of the textile industry has begun to pick up. In the future, the price increase of textile and apparel export products will promote the rebound of domestic textile and apparel export value, and it is very likely that the export value growth rate will exceed the market expectation of 10%.
The appreciation of the renminbi has a limited impact on the industry leaders in the subdivisions. The increase in labor costs has an impact on the leading companies in the short-term, but it is beneficial to the development of the leading companies in the long-term. Although the appreciation of the renminbi has an impact on the leading textile and apparel segments, the leading companies have long-term stable customer bases, strong R&D and bargaining power, and bank operations, which can minimize the impact of the appreciation of the renminbi. The general increase in labor costs will cause the average increase in production costs of enterprises to be between 3% and 6%, and the increase in costs will lead to losses for small and medium-sized enterprises. For leading enterprises, although it has an impact in the short term (within 1 year), due to the original labor of these leading enterprises The cost is more standardized, so the impact of rising labor costs is limited. In the long run, rising labor costs will force SMEs to withdraw, and the industry will become more standardized, which will benefit the development of leading companies in the sub-industry.
The process of urbanization and the increase in residents' income continue to promote the growth of the domestic apparel market. In the first quarter of 2010, the retail sales of clothing products of one of the 100 key large-scale retail enterprises across the country increased by 28.7% year-on-year. We believe that the urbanization process promotes rigid demand for urban clothing, and the increase in residents' income will further promote the fashion demand in the domestic apparel market. Thanks to the two major driving forces, the domestic apparel market continued to grow. It is estimated that in 2010, the domestic apparel market demand growth rate will be 18.7%, of which urban rigid demand growth rate will be 15%, and fashion clothing demand growth rate will be 23%.
Some upstream sub-sectors of the textile industry chain will be the first to benefit from the industry's recovery. As the textile export situation improved in 2010 and the domestic market continued to grow steadily, we believe that regardless of whether the textile and apparel industry will recover in a "V" or "Nike" shape in the future, the growth trend of the textile and apparel industry in the future is certain. , And the textile and apparel industry is an industry with full market competition. During each recovery process, some companies will stand out. We believe that during this recovery process, there will also be some sub-industry companies who will be the most competitive in a period of time when the competition is not yet fierce. First benefit. For example: leading printing and dyeing companies with environmental advantages and leading yarn companies with better performance in recent market conditions, clothing accessories companies that will benefit from the rebound in clothing processing.
Sub-sectors that should be paid attention to in the textile and apparel sector in the second half of the year. For export growth, it is recommended to focus on export-oriented segmented leaders, for domestic textile industry recovery, it is recommended to focus on the printing and dyeing, accessories, and yarn sub-sectors, and for domestic sales market growth, it is recommended to focus on companies with faster channel growth. Listed companies to focus on. We believe that the export-oriented listed companies should focus on Lutai A, Huafu Mélange, etc.; domestic brand listed companies should focus on Pathfinders; in addition, the printing and dyeing sub-sector should focus on Hangmin shares, Zhonghe shares; clothing accessories sub-sectors Should pay attention to Weixing shares, yarn sub-sectors pay attention to Xinye Textile, Huamao, etc.
The appreciation of the renminbi has a limited impact on the industry leaders in the subdivisions. The increase in labor costs has an impact on the leading companies in the short-term, but it is beneficial to the development of the leading companies in the long-term. Although the appreciation of the renminbi has an impact on the leading textile and apparel segments, the leading companies have long-term stable customer bases, strong R&D and bargaining power, and bank operations, which can minimize the impact of the appreciation of the renminbi. The general increase in labor costs will cause the average increase in production costs of enterprises to be between 3% and 6%, and the increase in costs will lead to losses for small and medium-sized enterprises. For leading enterprises, although it has an impact in the short term (within 1 year), due to the original labor of these leading enterprises The cost is more standardized, so the impact of rising labor costs is limited. In the long run, rising labor costs will force SMEs to withdraw, and the industry will become more standardized, which will benefit the development of leading companies in the sub-industry.
The process of urbanization and the increase in residents' income continue to promote the growth of the domestic apparel market. In the first quarter of 2010, the retail sales of clothing products of one of the 100 key large-scale retail enterprises across the country increased by 28.7% year-on-year. We believe that the urbanization process promotes rigid demand for urban clothing, and the increase in residents' income will further promote the fashion demand in the domestic apparel market. Thanks to the two major driving forces, the domestic apparel market continued to grow. It is estimated that in 2010, the domestic apparel market demand growth rate will be 18.7%, of which urban rigid demand growth rate will be 15%, and fashion clothing demand growth rate will be 23%.
Some upstream sub-sectors of the textile industry chain will be the first to benefit from the industry's recovery. As the textile export situation improved in 2010 and the domestic market continued to grow steadily, we believe that regardless of whether the textile and apparel industry will recover in a "V" or "Nike" shape in the future, the growth trend of the textile and apparel industry in the future is certain. , And the textile and apparel industry is an industry with full market competition. During each recovery process, some companies will stand out. We believe that during this recovery process, there will also be some sub-industry companies who will be the most competitive in a period of time when the competition is not yet fierce. First benefit. For example: leading printing and dyeing companies with environmental advantages and leading yarn companies with better performance in recent market conditions, clothing accessories companies that will benefit from the rebound in clothing processing.
Sub-sectors that should be paid attention to in the textile and apparel sector in the second half of the year. For export growth, it is recommended to focus on export-oriented segmented leaders, for domestic textile industry recovery, it is recommended to focus on the printing and dyeing, accessories, and yarn sub-sectors, and for domestic sales market growth, it is recommended to focus on companies with faster channel growth. Listed companies to focus on. We believe that the export-oriented listed companies should focus on Lutai A, Huafu Mélange, etc.; domestic brand listed companies should focus on Pathfinders; in addition, the printing and dyeing sub-sector should focus on Hangmin shares, Zhonghe shares; clothing accessories sub-sectors Should pay attention to Weixing shares, yarn sub-sectors pay attention to Xinye Textile, Huamao, etc.
