Key investment points
This week, the textile and garment sector outperformed the market by 1.85pct, with Leshan Giantstar Farming&Husbandry Corporation Limited(603477) , Huasi Holding Company Limited(002494) , Modern Avenue Group Co.Ltd(002656) rising ahead. This week (02.07-02.11), SW textile and garment sector rose 2.67%, Shanghai and Shenzhen 300 rose 0.82%, and textile and garment sector outperformed the market by 1.85pct. Among them, SW textile manufacturing sector rose 2.12%, and SW clothing and home textile rose 2.34%. Excluding the average value of the textile industry in recent 96 years, it is lower than the average value of the textile industry in recent 96 years, which is calculated by the SW method. The top five companies in the textile and garment sector were: Leshan Giantstar Farming&Husbandry Corporation Limited(603477) (+ 31.56%), Huasi Holding Company Limited(002494) (+ 19.25%), Modern Avenue Group Co.Ltd(002656) (+ 16.33%), Annil Co.Ltd(002875) (+ 12.08%) and Bros Eastern Co.Ltd(601339) (+ 11.38%); The top five companies in the textile and garment sector that fell this week were: Shangying Global Co.Ltd(600146) (- 14.75%), Cedar Development Co.Ltd(002485) (- 9.78%), Comefly Outdoor Co.Ltd(603908) (- 9.27%), Anzheng Fashion Group Co.Ltd(603839) (- 9.05%) and Beijing Sanfo Outdoor Products Co.Ltd(002780) (- 7.58%)
This week, the household goods sector lagged behind the market by 0.11pct, Goldenhome Living Co.Ltd(603180) , Suofeiya Home Collection Co.Ltd(002572) , Chengxin Lithium Group Co.Ltd(002240) rose ahead. This week (02.07-02.11), SW household goods sector rose 0.72%, Shanghai and Shenzhen 300 rose 0.82%, and furniture sector lagged behind the market by 0.11pct. From the valuation level of the sector, the current industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 24.47 times and that of SW furniture is 22.97 times, which is lower than the average value in recent one year. The top five companies in the furniture sector this week are: Goldenhome Living Co.Ltd(603180) (+ 15.85%), Suofeiya Home Collection Co.Ltd(002572) (+ 8.16%), Chengxin Lithium Group Co.Ltd(002240) (+ 7.65%), Zbom Home Collection Co.Ltd(603801) (+ 7.16%) and Dare Power Dekor Home Co.Ltd(000910) (+ 5.01%); The furniture companies with the top five declines this week are: Guangdong Piano Customized Furniture Co.Ltd(002853) (- 10.88%), Keeson Technology Corporation Limited(603610) (- 7.03%), Xlinmen Furniture Co.Ltd(603008) (- 6.71%), Ue Furniture Co.Ltd(603600) (- 6.01%) and Qumei Home Furnishings Group Co.Ltd(603818) (- 5.51%)
Important industry news:
\u3000\u30001. Estee Lauder Q2 grew by 14% over the same period last year, and Chinese mainland skin care products and perfume increased. Recently, Estee Lauder announced the results of the second quarter of fiscal year 2022. The company's Q2 net sales were $5.539 billion (about 35.2 billion yuan) / + 14%; Net profit of US $1090 million (about RMB 6.93 billion) / + 24%, and there are signs of recovery in the western market. By product, the net sales of skin care products is US $3.159 billion (about 20.08 billion yuan) / + 12%; The net sales of cosmetics is US $1386 million (about 8.8 billion yuan) / + 11%; The net sales of perfume products are US $799 million (about 5 billion 70 million yuan) /+29%; The net sales of hair care products was $180 million (about 1.14 billion yuan) / + 17%. Two major trends: 1) the excellent performance of double 11 boosted the annual expectation: in the second quarter ended December 31, 2021, the company's sales increased by 14% over the same period last year's US $4.85 billion (about 30.8 billion yuan), and the net sales of each region and product category increased, reflecting the early recovery of physical retail stores (mainly western markets), It also reflects consumers' reactions to holiday products and key shopping moments. 2) the Asia Pacific market has the lowest revenue growth, Chinese mainland skin care products and perfume sales growth is strong: in the subregional perspective, the Americas market is the main driving force for Estee Lauder's quarterly performance, and its revenue growth is 24%. Revenue in Europe, Africa and the Middle East increased by 15%; The Asia Pacific region grew by 7%. The net sales growth in the Asia Pacific region is mainly driven by most parts of Chinese mainland, Australia and Southeast Asia, especially the net sales of skin care products, perfume and hair care products have increased by two figures. 2. Li Ning wants to "rebuild" a listed company. According to the news on February 8, launched jointly by Li Ning, Lane capital and astrapto, spac Trinity acquisition Holdings Ltd has officially submitted its listing application to the main board of the Hong Kong Stock Exchange on January 31, 2022. At present, Li Ning, Lane capital and astrapto respectively own 33%, 42% and 25% of all class B shares issued. Li Ning and lane capital submitted S-1 documents to the securities and Exchange Commission on March 31, 2021, and jointly founded the SPAC company Trinity acquisition Corp, which was registered on February 4. The plan is to apply for Trinity acquisition to be listed on the New York Stock Exchange. The fund-raising scale is expected to be $250 million, with the stock code "trny. U". In terms of finance, the company was established from December 3, 2021 to December 31, 2021 and did not generate any income. The company incurred expenses of HK $47000 for the establishment and bookkeeping of the company from December 3, 2021 to December 31, 2021. As at 31 December 2021, the company had zero cash but had net liabilities of HK $47000.
\u3000\u30003. China's foreign textile mills tentatively raised the quotation of cotton yarn. On February 8, the international cotton price index (SM) was 141.42 cents / pound, down 1.17 cents / pound, which was converted into the delivery price of 22038 yuan / ton at the general trade port (calculated according to 1% tariff, and the exchange rate was calculated according to the Bank Of China Limited(601988) middle price, the same below); The international cotton price index (m) was 139.70 cents / pound, down 1.24 cents / pound, equivalent to 21772 yuan / ton at the general trade port. After the Spring Festival, drive the spot market. Textile enterprises have resumed work and production one after another, and yarn prices have generally risen. The market has ushered in a "good start", with an increase of 100-1000 yuan / ton. Except polyester yarn and human cotton yarn, the prices of other varieties of cotton yarn continued to rise tentatively, with an increase of 100-1000 yuan / ton. During the Spring Festival, American cotton showed strong performance. Affected by this, the price of imported yarn outer disc generally rose. For example, the price of combed yarn in India is stronger, and the yarn factory has better quality. The floating quotation of jc32s woven yarn is US $4.87/kg, equivalent to RMB 36800 / ton. At present, the downstream market has begun to resume work and production, especially the textile enterprises with abundant raw material inventory and many local workers have a rapid recovery in the startup rate; The small factories with shortage of raw material inventory have not started yet. Due to the large increase of cotton raw materials after the festival, the price of cotton yarn also increased by a certain range, about 100-1000 yuan, but the overall volume is not large, mainly because the fundamentals of the downstream market have not been significantly improved, and the poor price transmission is still a problem. Due to the shortage of real estate cotton inventory, the procurement of textile enterprises is still dominated by lint in Xinjiang, with a small number of market transactions and rigid demand. Some textile enterprises have signed new orders, but downstream manufacturers are worried that cotton and yarn are still adjusted, and most of them focus on one single discussion. Textile enterprises are also cautious in receiving orders, and the market purchase and sales are more rational.
Important announcement of the company: [ Zhejiang Jasan Holding Group Co.Ltd(603558) ] announcement on the progress of repurchase of the company's shares by call auction; [ Chow Tai Seng Jewellery Company Limited(002867) ] announcement on the progress of repurchasing the company's shares; [ Lancy Co.Ltd(002612) ] suggestive announcement on the release of 2021 annual performance forecast by overseas holding subsidiaries.
Investment suggestion: for the clothing and home textile sector, it is suggested to pay attention to Anta sports and Li Ning, the leaders of sportswear with higher prosperity and better competition pattern, as well as Chow Tai Seng Jewellery Company Limited(002867) , Bosideng and Ningbo Peacebird Fashion Co.Ltd(603877) .
Risk tips: 1 Real estate sales did not meet expectations; 2. The epidemic situation in China continues to occur repeatedly; 3. Intensified brand competition; 4. The epidemic situation in Southeast Asia may affect the production capacity release of the textile manufacturing industry; 5. The exchange rate fluctuates greatly.
