Textile industry welcomes opportunities at the end of the year

Stocks in the textile group are considered more suitable for accumulation buying during corrections than "chasing" at high price levels.

The stock market is showing signs of slowing down after a recovery of more than 50 points. In the last session, the VN-Index ended slightly red, down 1.38 points. Notably, liquidity increased by more than 30% compared to the previous session, reaching more than VND 15,600 billion. This shows that supply and demand have met more at the current price range, and short-term profit-taking activities have also become more active.

Foreign investors also bought and sold alternately, with a net selling value of more than VND200 billion. In the buying direction, MSN and TCB continued to be bought from VND30-80 billion. Meanwhile, foreign investors continued to sell VCB of Vietcombank, MWG and FPT. It is easy to see that foreign investors tend to buy and sell quite selectively and often focus on buying stocks with relatively attractive valuations in the long term.

In the context that popular stocks in large industries such as Banking, Real Estate, Securities... have not had many fluctuations, investors tend to look for opportunities in individual stocks with their own stories. In addition to VTP, VGI of Viettel group or FPT, LPB has increased significantly in the market since the beginning of the year, BVH of Bao Viet Group has increased strongly for the third consecutive session. This group announced that on December 20, it is expected to pay 2023 dividends in cash at a rate of more than 10%. In terms of ownership ratio, the largest shareholder, the Ministry of Finance, will receive nearly 500 billion VND in dividends. Meanwhile, another enterprise in the industry, the Military Insurance Corporation, plans to offer more than 25 million shares to existing shareholders to increase capital and develop business activities.

In addition, cyclical stocks associated with the end of the year such as retail and export are also of interest to investors. Textile stocks are even expected to receive more orders thanks to the shift in supply chains.

In the third quarter, Vietnam's textile and garment industry also recorded a spectacular recovery, with revenue and profits of many enterprises reaching high levels, with textile and garment export turnover in the third quarter reaching more than 12 billion USD, up 13.2% over the same period last year.

Recruiting new workers and mobilizing workers to work overtime, this company is trying every way to produce all the orders signed with foreign customers, while new orders are still increasing. The company said it is fully booked until the end of January next year.

Mr. Than Duc Viet - General Director of May 10 Corporation said: "It is expected that in 2024, we will also complete the planned revenue target of 7% growth compared to the same period in 2023".

According to the Vietnam Textile and Apparel Association, the industry's export turnover this year is estimated to reach 44 billion USD, up 11.26% compared to last year. According to experts, this result is due to peak demand at the end of the year, reduced shipping rates, and shifts in orders. Exporting enterprises will also benefit from exchange rate movements.

Ms. Pham Huyen Trang - Director of Stock Analysis, SSI Securities Corporation commented: "The trend of decreasing financial costs, combined with favorable exchange rates, will also contribute to promoting strong growth in the textile and garment industry's profits in the fourth quarter of this year. In the long term, we believe that the trend of shifting orders from China and other countries to Vietnam will continue because major retailers in the world have policies to diversify export sources."

Mr. Do Bao Ngoc - Investment consultant commented: "In the fourth quarter and next year, according to the information I have learned, many textile and garment enterprises have orders until June next year. That means we have the next three quarters to expect from this industry group. That is a future factor, we have to look to the future when investing."

In general, textile stocks are receiving some short-term support factors. After the recent recovery, the valuation of textile stocks is at a reasonable level. Therefore, according to experts, this group of stocks is considered more suitable for accumulation buying during corrections than "chasing" at high prices.

According to VTV

Source: https://doanhnghiepvn.vn/kinh-te/nganh-det-may-don-co-hoi-dip-cuoi-nam/20241204053404240