We believe that the 2015 terminal retail apparel textile market will maintain steady growth; new areas of business and new business development is still in the initial planning process and even the majority of the concept stage, the 2015 results difficult substantive contribution; electricity supplier model to the real essence of the channel substitution effect is to improve operational efficiency, the trend will still continue, electricity supplier business to business performance will continue to improve the contribution; enterprises to improve internal operational efficiency in recent years, in particular the effectiveness of supply chain management, and other fine "medical procedure" implemented in 2015 is expected to further reflect corporate profits improve progress end will be better than the income side recovery progress.

2015 end retail and corporate revenues have significantly improved difficult

2014 terminal retail and industry revenue growth fell slightly, but the situation has stabilized significantly. We believe in the coming years, China's economic growth in the central down in the background, in 2015 the income and expenditure will remain stable, the terminal retail apparel market has increased dramatically the level of growth is difficult to power in 2015 slightly higher end retail growth 10%. 1) 2014 Personal income and consumer spending growth quarter by quarter decline, industry terminal retail sales growth fell slightly; 2) Despite the majority of sub-sector revenue quarter by quarter, but the first three quarters as a whole continued to decline compared with the same period in 2013; 3 ) 2015 spring and ordering data has not significantly changed, reflecting the franchisee still more cautious attitude.

The main attraction of new business growth: the degree of matching resources and business synergies

Clothing textile enterprises are mainly from existing product lines and broaden into new industries both actively explore new business growth, the current expansion of new business processes most companies still in the early stages of planning and implementation of even the concept, although long-term growth is vast, but difficult to have a material impact on 2015 earnings contribution. We are relatively optimistic about having a higher degree of matching as well as traditional business and new business the company has a high synergy in corporate control of resources and new business areas.

Industry model change to promote operational efficiency

Effects of changes in the nature of the industry's business model is to enhance operational efficiency. 1) the electricity supplier for the physical channel is still an alternative to the continuation of the first three quarters of 2014, "50" and "one hundred" clothing retail sales were slightly increased by 1.5% and 1.7%, higher than the growth rate of decline was the overall level of social zero clothing. B2C market deal size over the same period, an increase of 53.40% clothing category. 2) contribution to the performance of business-to-business electricity supplier will continue to rise. Currently listed companies in the electricity business income accounted for 20% of basic, there is still much room for improvement, in 2015 the electricity supplier business clothing textile companies are expected to maintain rapid growth.

Show the effectiveness of business efficiency improvement

2014 enterprises to improve operational efficiency, and achieved initial results, including menswear, home textiles and leisure three sectors in 2014 net profit growth better than the revenue improvement. We believe that companies improve internal operational efficiency in recent years, a series of concrete results "medical procedures" Implementation of supply chain management and other refined further in 2015 will be reflected in the profit side progress to improve the recovery is expected to be better than the income side progress.

Investment Strategy: "an evasive" and "two main"

Maintain the industry "overweight" rating. Recommends avoiding early to rely on "new growth" concept driven valuation increase in 2015 and the actual results difficult to substantial improvements in the company. An active layout, corporate control of resources and new business areas with a higher degree of matching as well as traditional business and new business the company has high synergies. 2, model transformation is progressing well, the internal management reform and achieved remarkable results, have a substantial contribution to the performance of quality targets. Recommended Semir clothing and Carolina textile.