Category: Money Tips Date: 2006-07-21
Monday Quotes in the broader market continued to adjust the shocks hit a new low Quotes, textile plate sink across the board, Feiya shares, Shandong Hailong, Mita shares, etc. in a number of stocks across the board lower limit textile, textile plate to become an important market, short Monday power, how to understand this phenomenon?
The textile industry faces two major bad First, to analyze a large area wide shocks textile plate main reasons is the industry's fundamentals are two major negative factors, thus increasing the development of the industry variables, to stimulate the market's short-term sell-off behavior. These two negative factors are: 1, the United States three types of textile quotas on China. 2, China's textile export tariffs on a large margin.
Textiles as a competitive product and not to create demand for products, China's textile exports will inevitably lead to significant increase in competitors, the decline of export and import-related industries in the country suffer. Recently, China and the EU, the U.S. textile trade friction between the more and more intense, it was in such a context, the European Union and the United States on China's textile quotas, while China has also substantially increased export tariffs on textile products in order to ease trade dispute . Perhaps many investors are limits to the United States has been psychologically prepared, but also raise the export tariff there is a certain psychological expectations, but the magnitude of the tariff increase is still well above market expectations. The last from the amount of taxes an average of about 1% taxes, this substantial increase on the 74 categories of textile tariffs, the average tax will be raised to about 4% and thus will greatly increase the operating costs of the textile enterprises. Can be judged to raise export tariffs on textiles and garments will largely inhibit the export of textiles and garments from Europe and the United States imposed restrictions varieties to see the annual textile export situation will be much lower than expected, the corresponding 2005
Industry exports annual growth rate will be significantly reduced, thereby also affect the overall profitability of the textile industry to reduce the level of the textile section of the valuation. So the market for the textile section of the positive short-term reduction of operation.
The textile industry will speed up the reshuffle While the European Union, the United States restrictions on Chinese textile products and China's increased textile export tariffs on textile industry constitutes a negative impact on China's textile industry, but will not pose a lethal blow; on the contrary, China's textile industry's competitiveness in the international community remains very strong. However, the two major negative factors that will accelerate the textile industry of the shuffling process: one, due to the current adjustment used the "taxable quantity" approach, the rate adjustment on the impact of different companies with varying degrees, some of the lower unit, puerile Small businesses hit a larger share of higher value-added effects to a lesser extent the advantages of the company, and even a small number of high-tech companies can approach to the transfer of tax price increases caused by rising costs. Second, substantial increase in export tariffs on textile exports will be significantly reduced growth rate, while the initial investment in fixed assets is too high capacity will lead to the release of the domestic textile price war, while the advantages of listed companies will win in the competition. Third, although the United States on China's textile exports three kinds of limits, but a closer analysis revealed that the focus of the industry will be affected by listed companies is relatively limited. While the leading shares are mainly engaged in cotton and man-made fiber underwear production and sales, but its sales mainly for the domestic market; seven wolves and Youngor part of the cotton trousers exported to the United States, but limits sales of products sold in the United States company's main business income of less than 1%, so we think that these companies did not affect performance, but some other export-oriented enterprises can produce relatively strong negative impact. Therefore, the industry's negative factor for the negative impact of each company is different and, in turn will accelerate the shakeout in the industry consolidation process.
Four coping strategies Monday appeared in a large area of textile plate down, although there are certainly reasonable, but some dominant enterprises decreased by acts of non-rational investors will also provide a good opportunity for middle Jiancang, then how investors respond? We give investors the following Recommendation: 1, focusing on the leading companies within the industry. The textile industry will have an accelerated shuffling process in which the leading sub-sector will become the winner of industry consolidation, such as Lutai A, Black Peony and other firms, in the short-term shocks of these companies can be considered to track the center line. 2, concern domestic product mainly listed companies. The two negative factors, mainly aimed at export of textile products, and some textile companies have been the main direction is the domestic market, a very small proportion of its exports, so negative factor for the little impact on the company's performance, such as leading shares, Keno science and technology, short-term shock will provide investors with good opportunities for bargain hunting. 3, there are other points of profit growth of listed companies. Youngor is a typical, corporate real estate business has shown healthy growth, will become the company's major profit growth point. Hualian Holdings has also successfully achieved the restructuring of industries. 4, short-term export of class to avoid the downstream companies. The two major negative factor for these companies will be under the influence of a larger negative impact on short-term oriented investors should avoid.
List of some textile stocks
Referred to the code flow of capital stock (shares) in the first quarter earnings per share (yuan) closing price (yuan) rose decrease (%)
Feiya Shares 0,020,423,200 0.043 4.1 -10.09
Shandong Hailong 000,677 14,152.32 0.035 3.12 -10.09
Mita shares 00,078,212,741 0.0133 2.86 -10.06
MIZUDA 0020342160 0.06 8.16 -10.03
Black Peony 60,051,011,400 0.06 * 3.39 -10.08
Huafang Textile 6.002739 billion 0.022 2.5 -10.07
Note * expressed as diluted earnings per share data
