In 2021, a number of key companies issued performance forecasts, which rebounded under the joint catalysis of the stabilization of the global epidemic and the rebound of consumer demand. The epidemic situation has been controlled, orders have stabilized, and the upstream leading companies have recovered rapidly; Downstream enterprises optimize channels, enhance brand image, drive performance growth and continue to develop for the better.
The global epidemic has stabilized, consumer demand has rebounded, customer orders have increased, and the performance of key upstream companies has recovered well. In 2021, the epidemic situation at home and abroad was effectively controlled, and the orders of upstream garment and shoe-making enterprises outside China stabilized, realizing the simultaneous rise of volume and price, Huali Industrial Group Company Limited(300979) following the trend of increasing sports demand of the epidemic and the continuous recovery of sports shoe consumption, the net profit in 2021 is expected to be 2.91 ~ 2.63 billion yuan, with a year-on-year increase of 40 ~ 55%. Anhui Korrun Co.Ltd(300577) 2B orders also rebounded significantly. The company paid close attention to the market trend and continuously optimized the customer structure. In 2021, the net profit is expected to be 145 ~ 195 million yuan, with a year-on-year increase of 86.1 ~ 150.15%.
The channels of downstream enterprises were further optimized and the brand image was improved, driving the performance improvement of key companies in 2021. In terms of sports apparel, under the background of the industry’s high outlook and demand recovery, the leading company Anta sports actively promoted the quality improvement and upgrading of main brands, and the retail flow growth rate in 2021q4 was good. Among them, Anta brand increased by 10 ~ 20%, FILA brand increased by 30 ~ 35%, and other brands increased by 30 ~ 35%. The net profit is expected to increase by no less than 35% year-on-year in 2021; Tebu international adjusted the e-commerce structure and promoted the upgrading of channels. In 2021q4, the flow growth rate increased month on month against the trend. The growth rate of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) omni-channel retail sales reached 20% ~ 25%, and the net profit is expected to increase by more than 70% year-on-year in 2021. The performance of other key brand clothing companies has also recovered well, Zhejiang Semir Garment Co.Ltd(002563) made efforts to innovate products and accelerate digital transformation. The net profit in 2021 is expected to be 1.45 ~ 1.55 billion yuan, with a year-on-year increase of 79.97 ~ 92.38%.
Retail clothing sales fluctuated in December and are expected to improve in January and February with the arrival of the peak season of the Spring Festival. In December, clothing retail sales decreased by 2.3% year-on-year and 0.20% compared with the same period in 2019, showing a fluctuating trend. In December, the situation of textile and clothing retail fluctuated due to the fluctuation of the epidemic in many provinces across the country, the impact on supply-side production and demand-side consumption, and the impact of external consumption environment. In the future, with the further promotion of the Spring Festival promotion activities and the continuous strong demand of consumers for the preparation of new year goods, the retail situation of textile and clothing is expected to pick up in January and February.
Under the current situation, we continue to pay attention to the targets with good performance. Hla Group Corp.Ltd(600398) , Zhejiang Semir Garment Co.Ltd(002563) are the key recommendations for public leisure clothing. Medium and high-end clothing recommendations Biem.L.Fdlkk Garment Co.Ltd(002832) , Bosideng, Dazzle Fashion Co.Ltd(603587) . In terms of sports clothing, under the background of high industry outlook and recovery of demand, we mainly recommend Hong Kong stocks Anta sports, Li Ning and Tebu international. The home textile industry Wuxi Online Offline Communication Information Technology Co.Ltd(300959) grew well. It is recommended to focus on Luolai Lifestyle Technology Co.Ltd(002293) , and it is recommended to pay attention to Shanghai Shuixing Home Textile Co.Ltd(603365) , Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) . In terms of upstream textile manufacturing, with the effective control of the epidemic at home and abroad and the stabilization of orders at home and abroad, the integrated footwear ODM manufacturer Huali Industrial Group Company Limited(300979) is recommended; Shenzhou International, a manufacturing leader with perfect production capacity layout, is expected to grow steadily in the future. It is recommended to pay attention to Zhejiang Xinao Textiles Inc(603889) .
Plate review: Gem (- 4.14%), Shenzhen Composite Index (- 5.00%), Shanghai and Shenzhen 300 (- 4.51%), Shanghai Composite Index (- 4.57%). The textile and garment industry saw a decline of 92.3%, while the textile and garment industry saw a decline of 98.3%.
Announcement of key companies: Anhui Korrun Co.Ltd(300577) released the performance forecast. During the reporting period, the company’s sales revenue increased year-on-year, and the operating revenue is expected to increase by 13.18% – 28.61% over the same period of last year; Zhejiang Semir Garment Co.Ltd(002563) recently released a performance forecast. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be 1.45 billion yuan to 1.55 billion yuan, with a year-on-year increase of 79.97% to 92.38%.
Risk factors: the epidemic situation is uncertain, and the consumption recovery is less than expected
