Devaluation of the RMB to enhance the competitiveness of textile and garment

Release time：2016-6-20 9:07:31        Click times：966

The subsidy of new photovoltaic power plants in our country issued have been stalled for more than two years, the photovoltaic power plant operators to cash flow resulting in enormous pressure, the renewable energy surcharge for 0.7 points / degrees, an annual increase of income of the fund can support 50gw new PV installed demand, is expected to the arrears of subsidies to resume issuing, and play great positive role to improve the future of subsidies paid to the timeliness.
We continue to be relatively optimistic about the manufacturing sector high boom continuous background, industry technical route change (the proportion of single crystal lifting) to bring the local high growth, a key recommendation highlight the cost advantages, industrial chain extension of fast and efficient monocrystalline leader: Longji shares.
For power plant part enterprise, we believe that the tariff reduction programme finalized in a certain extent, as in the short term to make a bad, follow-up increase renewable energy surcharge, and some potential improve power rationing measures, such as quotas policy introduced, is expected to gradually revised market expectations of a power plant downstream sectors boom.
Textile and garment: short term to enhance the competitiveness of the RMB devaluation
After entering SDR, the market is expected to significantly increase the depreciation of the rmb. We believe that the devaluation of the renminbi to enhance the competitiveness of textile and garment exports, enhance export orders. But from the historical perspective, the appreciation of the renminbi on the long-term profit margins of textile enterprises limited. Over the past few years, exports rose more in the overall cost advantage, also, the impact of devaluation will be limited.
We judge the 4 quarter of this year and the second half of next year is about the time window, on the one hand is low base performance rebound, the second is under the background of supply side reforms and sluggish consumer and small business or closures, textile orders further to the leading enterprises.
Investment advice: recommended enterprises that export ratio accounted for listed companies: Dayang, Vosges stake, MediaTek shares, Lutai, Blum East. Recommended historical stability of the leading enterprises: Lu Tai A, shares of the company.
Nuclear power: four nuclear power units approved, nuclear power into a large-scale construction period
December 16, Premier Li Keqiang presided over the State Council executive meeting, the meeting decided, to have been included in national planning, with the construction conditions of the Jinsha River Wudongde Hydropower Station, Guangxi Fangchenggang red sand nuclear power phase II project "Hualong" third-generation nuclear power technology demonstration units and Jiangsu Lianyungang Tianwan nuclear power plant expansion project shall be approved.
We believe that China's nuclear power to get rid of the shadow of Fukushima, has entered a period of large-scale approval. "Hualong one" is expected to become the main domestic construction and export. The development of nuclear power by the government support, the future CAP1400 demonstration reactor approval period.
Investment advice: consider nuclear power business resiliency and domestic alternative space, we recommend focus on three generations of nuclear power technology and equipment supplier: nuclear power in the Taiwan Strait (main channel), Zhejiang rich Holdings (Hualong, a control rod sole supplier), southerly shares, Jiangsu Shentong. Recommendations concern: nuclear science and technology, China's nuclear power, Shanghai Electric, Dongfang Electric, Yingliu shares, shield Ann environment, Neway shares.

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