Textile Machinery: Industry Upward Cycle To Guide Stocks To Go Higher

Yesterday, the A share market dropped sharply in the sharp fall, and the Shanghai Composite Index [2887.04 -1.31%] broke the support of 2900 points.

But the disk shows that the standard shares [8.34 -3.58% shares], ZOJE shares [7.69 0.92% shares], Jingwei Textile Machinery [15.05-0.73% shares, and other textile machinery stocks are still relatively tough, ZOJE shares Japanese K-line chart more long line buying continuously positions, then, how do we view this information?

From the perspective of industry development, the demand for downstream is still optimistic.

According to statistics, from 2004 to 2010, the net annual average compound growth rate of China's clothing and footwear industry was 40.64%. In 2010, China's clothing and footwear manufacturers actually completed 137 billion 90 million yuan in fixed assets investment, an increase of 32.96% over the same period last year.

Still maintained a relatively high growth rate.

It can be seen that the investment in fixed assets of clothing and footwear industry is still in the high growth trend in the future, which opens up the room for the growth of textile machinery.

Moreover, in recent years, the cost of manpower has increased rapidly.

The average wage of the workers in the clothing and footwear industry was 1000 yuan / month / person.

But with the pressure of inflation and the structural changes of migrant workers in recent years, the average wage of workers in clothing and footwear industry has increased rapidly to 1500 yuan / month / person, or even higher.

For clothing, footwear and footwear enterprises,

It is worth noting that the trend of large textile machinery to replace small and medium-sized machinery is also becoming more apparent.

The upward industry cycle gives high growth expectations.

At the same time, the structure of international textile equipment has changed significantly. Germany's 100 Fu, SINGER and Japan SINGER have been closed down. During the financial crisis, major manufacturers of Du Kepu and heavy machinery are also laying off workers. This shows that China has become the only production base in the world and will become the leading position in the world's textile equipment industry, which will also promote the prosperity of the textile machinery industry.

However, the global textile giants are facing the trend of rising labor costs. Under this background, China is not only exporting textile and clothing, but also selling textile machinery.

Taking industrial sewing machines as an example, in 2010, the structural pformation of China's industrial sewing machine exports accelerated. The proportion of automatic products in industrial sewing machines increased from 42% last year to 48% this year, and the proportion of exports from 45% last year to 52% this year.

From the export market, China's industrial sewing machine export market mainly concentrated in Brazil, Singapore, India and other regions in 2010.

In 2011, the market export growth of Brazil, Singapore, Russia and Turkey was gratifying.

Because of this, China's textile machinery industry has experienced a strong rebound trend in recent years.

Taking industrial sewing machines as an example, in 2008, industry revenue declined by 24.96%, profits fell by 73.62%, and revenue in 2009 declined by 2.78%, which basically stopped and profits grew 26.75%.

In 2010, revenue grew by 48.02%, and profits increased by 147.49%.

A strong recovery is a foregone conclusion.

On the other hand, the performance of the related listed companies has been obviously improved.

In 2010, the main business growth of standard shares and ZOJE shares was 101% and 124% respectively, while Duke F De's growth rate was 2009. In 2010, it was -42.70% and -11.17% respectively, while heavy machinery companies were -32.05% and -21.00% respectively, showing a downward trend.

This has further confirmed the upward industrial cycle of China's textile machinery industry.

Pay close attention to leading varieties of industry

From past experience, once the industry has entered a strong rise cycle, the profitability of the industry's leading stocks will continue to soar, so that long-term funds will be favored. ZOJE's recent Japanese K-line chart is the best explanation.

Therefore, in the operation, investors are advised to take an active interest in ZOJE shares.

At the same time, Jingwei Textile machinery, standard shares and founder motors [15.96 -5.00% shares] and other stocks can also be tracked.

Among them, Jingwei Textile Machinery's profitability elasticity expectations are also more optimistic, not only textile machinery, but also trust company equity, therefore, it is recommended that investors actively follow.