Securities Companies Report: Optimistic About Textile Industry Upgrading And Seize New Opportunities For Global Expansion Of Leading Enterprises

Guoxin Securities released a research report saying that it is optimistic about the upgrading of the textile industry and sharing the growth dividend of high value-added textile materials. China's textile industry is in the absolute leading position in the world, and is now in the wave of industrial structure upgrading. Under the epidemic situation, the domestic supply chain recovered rapidly, stable and reliable, which once again proved the industrial advantages. In the future, with the increase of industrial added value, high-end textile material enterprises have broad prospects for development. We are optimistic about the leading manufacturers with continuous R & D innovation, efficiency leadership, core technology and customer resources, and global layout. We recommend Shenzhou International (02313), Taihua new materials (603055. SH), Weixing (002003. SZ), Tianhong textile (02678) and Bailong Orient (601339. SH).

The main viewpoints of Guoxin Securities are as follows:

The development history of global textile industry: transformation from deep industrial base to high value added material industry

Textile and clothing industry chain from top to bottom from assets to human resources, in which the value-added value of differentiated textile materials is high. The global textile industry has undergone five rounds of great migration in the past century, extending from terminal garment processing industry to intermediate textiles with higher added value, and finally retaining high-end manufacturing and technology research and development. China continues to occupy a leading position in the global textile industry. High value-added industries are booming and terminal processing is spilling over.

Stones from other mountains: the evolution of textile material giants from Toray and YKK

Founded in textile, fiber and film industries, Toray has a total revenue of about 140 billion yuan in textile, fiber and film industries. YKK, the world-renowned zipper leader, was founded in 1934, with an income of about 50 billion yuan. Its main business includes zipper, building materials and mechanical equipment, leading the industry standard with innovation and quality.

Domestic textile industry: upgrading of added value, prominent stability and new opportunities for global expansion

At present, China's textile industry presents three opportunities: first, the upgrading of industry and the increase of added value have become the trend of the times; Second, the advantages of supply chain stability after the outbreak have been highlighted to consolidate the global core position; Third, leading enterprises expand overseas and build a new growth curve with the advantages of talents, technology and capital.

Invisible champion of textile materials

Shenzhou International is the global leader in the integration of fabric and clothing. With the advantages of high-quality fabric technology research and development, Shenzhou International has deeply bound top brands and achieved sustained and rapid growth. Taihua new material is the leader of differentiated chemical fiber textiles in China, and its expansion is accelerated under the background of booming supply and demand of nylon 66. Weixing Co., Ltd. is a double leader of zipper button in China, and its share is promoted by the progress of production technology. Tianhong Textile Co., Ltd., the leader of elastic core spun yarn in yarn field, and Blum Oriental, the leader of color spinning, has excellent sustainable growth prospects.

Risk tips: the epidemic situation worsened; Policy changes; The price of raw materials fluctuated greatly; The trade environment deteriorated; The expansion of production capacity is unfavorable.