< p > > strong > the second half of 2013, the rise in valuation reflects the stabilization of fundamentals, < /strong > < /p >

< p > in the aspect of clothing terminal consumption, 2013 continued the weaker trend in 2012. However, in the two tier market performance, the trend of the home textile plate in the second half of 2013 was obviously better than that in the first half of the year, and finally led the sector to win about 4.3 percentage points in Shanghai and Shenzhen 300.

In line with our 2013 mid term strategic report "performance downward and expected upward" judgment: after nearly two years of adjustment, inventory digestion is ideal and asset quality has recovered initially, so although the performance growth rate in 2013 is still in a downward channel, the risk reduction has led to a rebound in valuations. We expect this trend to continue in the 2014 a href= "http://m.pmae.cn/news/list.aspx ClassID=101112107108" > pformation accelerated < /a > 2014.

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< p > strong > 2014, industry differentiation, outdoor, home textiles, women's clothing turning point will be < /strong > < /p >.

< p > performance point of view, the decline of leisure performance has narrowed, outdoor and home textiles have upward trend in the middle of 2013; the turnover rate of men's wear, women's wear and leisure plate has upward trend, the stock situation of home textiles is also relatively stable; the accounts receivable and cash flow situation of women's clothing and home textiles are relatively stable.

Overall, the quality of women's wear, leisure and home textile assets is healthier, and inventory is coming to an end. 2014 is expected to usher in an inflection point.

In addition, the 2014 spring and summer ordering will also indicate that the home textile and leisure sector is expected to enter the stage of < a href= "http://m.pmae.cn/news/list.aspx ClassID=101112107107" > inventory < /a > next year.

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< p > < strong > looking for the clue of the beginning of pformation. < /strong > < /p >

< p > 2012, the extensive growth mode of clothing brand is faced with bottlenecks. In the future, the endogenous growth will be driven by meticulous management.

We believe that the SPA mode is an important direction to solve the problem of clothing brand in China. However, the three main factors are the futures based ordering mode, the franchising channel structure and the online strategic development.

We believe that offline brand touches and layout of all channels are the necessary conditions for the precise development of the current SPA mode, while improving the consumption experience is conducive to improving operational efficiency.

For this reason, we even highly admire the listed companies with direct advantages. We are glad to see that some qualified companies such as the group of stock and the American state have speeded up the pformation in 2013, which will be the target we are looking for.

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< p > < strong > Recommend brand pformation, stock bottom and small manufacturing leader < /strong > < /p >

< p > we anticipate that the terminal consumption situation in 2014 is still difficult to pick up. The growth rate of the apparel home textile sector will continue to be under pressure.

Against this background, there is no chance of market trend, but we think the fundamentals and market sentiment in 2014 will be better than that in 2013.

The main logic is that after nearly 2012-2013 years of adjustment in the past two years, the inventory is coming to an end, asset quality has been improved, some brands are expected to enter the replenishment stage in 2014, and more importantly, some brands have accelerated the pformation in 2013. Although the effect needs to be observed, the direction is worth affirming. We believe that after 2014, we will see the improvement effect and maintain the industry's "stronger than big city" rating.

< a href= "http://m.pmae.cn/news/list.aspx? ClassID=101112107105" > clothing home textiles < /a > plate recommendation portfolio for the brand pformation of Langer and Mei Bang dress, next year is expected to replenishment of the home textiles and Fu Anna.

In the manufacturing sector, we tend to choose from bottom to top in the niche sector with growth, market share rising and strong Heng Qiang's target: Bank of China and Xingye technology.

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