In 2010, The Domestic Clothing Retail Market Was Gradually Hot.

In the short term, the manufacturing sector will face the risk of rising costs, European crisis and exchange rate appreciation in the fourth quarter.

While the retail sector of the retail sector suffered unfavorable factors in 2010, data showed that growth remained strong.

Since 2004, China's textile and clothing consumption has entered a stage of high growth, but at present, China's textile and clothing market is only about 1/2 of the export market. Therefore, in the long run, as the basic consumer goods of the residents, the growth of consumption in the future will benefit from sustained rising income.

In view of this, we maintain the brand retail sector's "stronger than big city" rating.

The adverse factors faced by the domestic clothing retail market in 2010 mainly include two aspects: abnormal weather and rising cost.

Despite these adverse effects, the steady growth trend of retail trade has not changed.

In 2010 1-5, the retail sales of textile and clothing consumer goods increased by 23.1% over the same period last year, an increase of 4.28% over the 2009 level.

Among them, the retail sales of clothing products increased by 24.4% over the same period in 1-4 months, which is better than the average level of retail sales growth.

At the same time, data from key large department stores show that: as of the first quarter of 2010, the retail sales of key large department stores increased by 25.42% over the same period last year, of which sales grew by 5.25% year-on-year, and sales unit prices increased by 19.83% over the same period last year. Price increases have become an important factor in the steady growth of retail sales.

On the one hand, the upstream manufacturing cost has been effectively pferred, and it is also a side manifestation of the rigid demand of the industry.

We judge domestic textile and apparel in 2010.

At present, the brand retail sector in 2010 is 32 times that of PE, and the continuous growth of performance will be the premise of its valuation improvement. It is recommended that we grasp the two categories of "clear performance growth" and "business turning point". The former focuses on seven wolves [32.88 0.24%] and [25.61 [25.61 -0.23%]. The latter proposes to pay attention to the [21.08 and 0.48%] [16.52 on Saturday, and the processing and manufacturing sector is 23 times the PE in 2010. The negative factors such as export pressure and cost increase will affect the valuation.