Textile industry: both exports and domestic sales are at a high level during the fundamental boom pe

The July portfolio return exceeded the industry index by 3.42%. In July, our investment portfolio allocated Baoxiniao, Weixing shares, Lutai A, and Huafu Mélange. Among them, Weixing shares were affected by better-than-expected interim results and achieved 33.61% positive returns this month. Due to the boom in domestic sales and exports, as well as the increase in raw material prices, the low- and medium-priced reserves have caused some production companies to exceed expectations. This type of company led the rise in July.

The fundamentals of the industry are still booming. Both the export growth rate and performance growth rate of production-oriented enterprises have reached a relatively high point. The annual export growth rate is expected to be about 15%, which is expected to exceed the general expectation of about 10% given by the market in the early stage. The retail sales growth rate of domestic brand enterprises is still at a high level, and the data of the autumn and winter trade fairs are more optimistic than the first half of the year. The current good consumer confidence index and terminal retail data set a good foundation for the 2011 spring and summer trade fairs held in September and October. Good foundation.

The industry’s “neutral” rating was maintained in August: (1) The sector’s performance in the previous July exceeded the CSI 300 Index by 15.4 percentage points, and the sector’s valuation premium relative to all A-shares reached the highest level in history; (2) The performance growth rate of production companies At a relatively high point in history, July experienced a round of supplementary gains; (3) The current dynamic PE of brand apparel companies in 2010 is generally more than 30 times. In the process of market adjustment, there is insufficient motivation to further increase the valuation.

Investment portfolio: Due to the pursuit of relative yield, based on the fundamentals of listed companies, taking into account the performance, valuation, additional issuance and other expectations of the interim report, we recommend that the investment portfolio be allocated in August, including SAINT ANGELO, Weixing shares, Lutai A, Huafu Mélange , Respectively give 25% weight.

Main risk factors. Systemic risks in the broader market have led to a decline in the valuation center; sluggish domestic and foreign demand has made it difficult for companies to smoothly transmit the pressure of rising costs.