The major indexes continued to show a downward trend in the last two weeks. Among them, the Shanghai Composite Index, Shenzhen Component Index, gem and CSI 300 index rose or fell by – 4.57%, – 5%, – 4.15% and – 4.51% respectively. The sectors that performed better this week were mining and electrical equipment. The textile and garment sector fell 4.46%, outperforming the Shanghai and Shenzhen 300 index by 0.05 percentage points. The performance of {0023} and {603664} of the textile industry rose by {0023} and {6034} respectively. The last five increases were Harson Trading (China) Co.Ltd(603958) , Shangying Global Co.Ltd(600146) , Xinjiang La Chapelle Fashion Co.Ltd(603157) , Ribo Fashion Group Co.Ltd(603196) and China Dive Company Limited(300526) .
Key investment points
Industry and company dynamics in the last two weeks
I) Ningbo Peacebird Fashion Co.Ltd(603877) it is estimated that the net profit attributable to the shareholders of the listed company will be about 660 million yuan in 2021, which is expected to decrease by about 7% compared with the same period of last year;
(II) Toread Holdings Group Co.Ltd(300005) it is estimated that the net profit attributable to the shareholders of the listed company will reach 50 million yuan to 62 million yuan in 2021; 3） Huafu Fashion Co.Ltd(002042) it is estimated that the net profit attributable to the shareholders of the listed company will reach 550 million yuan to 630 million yuan in 2021, an increase of 223.81% to 241.82% over the same period of the previous year; 4） Luthai Textile Co.Ltd(000726) it is estimated that the net profit attributable to the shareholders of the listed company will reach 280 million yuan to 420 million yuan in 2021, an increase of 187.74% to 331.62% over the same period of the previous year.
Industry rating and investment strategy
On the one hand, the holding of the Beijing Winter Olympic Games can directly and effectively improve the popularity of ice and snow sports, increase the population of ice and snow sports and significantly increase the demand for sports equipment. On the other hand, the sponsorship and investment of domestic brands in Winter Olympic events have better shaped the international image of the brand. In the future, these domestic brands are expected to form a curve overtaking in the international influence. It is suggested to pay attention to the outdoor equipment leader Toread Holdings Group Co.Ltd(300005) , sports shoes and clothing leader Anta sports, Li Ning, etc. Maintain the “overweight” rating of the textile and garment industry.
Risk tips
Risks such as price fluctuation of raw materials, sales falling short of expectations due to economic downturn, Global trade friction and so on.
