Key investment points
This week, the textile and garment sector outperformed the market by 0.55pct, with Zhejiang Weixing Industrial Development Co.Ltd(002003) , Zhejiang Golden Eagle Co.Ltd(600232) , Anzheng Fashion Group Co.Ltd(603839) rising ahead. The textile sector rose by 18.02% this week, while the clothing sector rose by 14.02% in Shanghai and Shenzhen (SW 1-550.02%). Among them, SW textile manufacturing sector rose 2.23%, and SW clothing and home textile rose 0.84%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 18.13 times, which is lower than the average value in recent one year. The top five companies in the textile and garment sector were: Zhejiang Weixing Industrial Development Co.Ltd(002003) (+ 16.77%), Zhejiang Golden Eagle Co.Ltd(600232) (+ 16.06%), Anzheng Fashion Group Co.Ltd(603839) (+ 14.13%), Modern Avenue Group Co.Ltd(002656) (+ 13.16%) and Zhejiang Bangjie Holding Group Co.Ltd(002634) (+ 11.63%).
This week, the household goods sector lagged behind the market by 1.03pct, Yotrio Group Co.Ltd(002489) , Chengxin Lithium Group Co.Ltd(002240) , Keeson Technology Corporation Limited(603610) rose ahead. This week (02.14-02.18), SW household goods sector rose 0.05%, Shanghai and Shenzhen 300 rose 1.08%, and furniture sector lagged behind the market by 1.03pct. From the valuation level of the sector, the current industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 24.39 times and that of SW furniture is 22.79 times, which is lower than the average value in recent one year. The top five companies in the furniture sector were: Yotrio Group Co.Ltd(002489) (+ 24.62%), Chengxin Lithium Group Co.Ltd(002240) (+ 10.22%), Keeson Technology Corporation Limited(603610) (+ 5.65%), Wangli Security & Surveillance Product Co.Ltd(605268) (+ 4.92%) and Zoy Home Furnishing Co.Ltd(603709) (+ 4.47%).
Important industry news:
\u3000\u30001. On Valentine's day, tmall's beauty categories increased by more than 300%, and men's care ushered in an explosion. On Valentine's day in 2022, Tmall made its debut in the year of the tiger: beauty, skin care, make-up, beauty and body instruments doubled, and the number of products increased by more than 300% over the same period. The growth rate of lip essence was over 5 times. The growth rate of Sun Spray and makeup spray was nearly 4 times. The growth of facial care set, facial essence, smear mask, cleanser and depilator were all above 200%. 1) Tmall's men's industry has witnessed a three fold growth, of which men's hairdressing and hair care have increased by nearly 30 times year-on-year, men's make-up and wash and care gift boxes have also been surprisingly popular, and women buyers have surpassed men for the first time among new customers in the industry. 2) The "smell economy" also entered the eve of the outbreak. On Valentine's day, the number of aromatherapy candles on tmall increased by nearly 500%, the number of aromatherapy essential oils and aromatherapy ornaments increased by nearly 800%, and the number of Aromatherapy Gift Boxes increased by more than 20 times. Luxury incense such as Valentino, lupatine, artienne's fragrance, byredo, Miyake life and narcisso Rodriguez made their debut.
\u3000\u30002. Jinba men's wear invests in Sichuan tea brand. Sichuan's local new tea brand book also burns Xiancao. Recently, it has received an investment of more than 600 million yuan. The participating investors include Jinba men's wear, Jue Wei, Qiaqia, trautra, etc. According to public information, shuyishaoxiancao was established in August 2013. It is a beverage chain brand, mainly providing users with coffee, milk tea, tea, dessert, ice cream and other drinks. There are three funds in this investment. The first one is "Chengdu Xinjin siyiwu" established by Juewei, Chacha Food Company Limited(002557) , Tencent, Chen Ke Ming Food Manufacturing Co.Ltd(002661) ; The second is "Hunan shudaicao", a directional fund jointly funded by Qiaqia, Everbright Holdings and Juewei Food Co.Ltd(603517) ; The third group is "Qingdao Nuowei", which was founded by Traut, Jinpai, the parent company of Jinjiu, and Jinba men's wear. The scale of this round of financing is more than 600 million yuan. After the completion of the financing, the shareholding ratios of Hunan shudaicao and Chengdu Xinjin siyiwu in shuyishaoxiancao are 2% and 1.6% respectively, and the shareholding ratio of Novell qidingkai is 2.06%.
\u3000\u30003. China and New Zealand upgraded the free trade agreement, and most of the timber was imported into China duty-free. In 2008, New Zealand became the first developed country to sign a free trade agreement with China. The document was modernized and revised in January 2021 and upgraded on April 7, 2022, simplifying the export of goods to China and significantly reducing the trade cost due to the elimination of tariffs. By June 2021, the export of goods and services between China and New Zealand had reached US $20.1 billion. The updated agreement includes new chapters on e-commerce, competition policy, public procurement and environment. The smooth implementation of the free trade agreement has created good conditions for updating the free trade agreement, making China the largest trading partner of New Zealand in 2017 and maintaining this high level. Together with timber, meat and tourism services, dairy products have become the main commodities exported by New Zealand to China. Since January 1, 2022, most dairy products from New Zealand have been transported to China duty-free for the first time. According to the current export volume, it is expected that this will save New Zealand an additional US $180 million per year.
Important announcement of the company: [ Anzheng Fashion Group Co.Ltd(603839) ] announcement on the extension of shareholders' share pledge; [ Ningbo Peacebird Fashion Co.Ltd(603877) ] announcement on bondholders' reduction of convertible corporate bonds of the company; [ Chow Tai Seng Jewellery Company Limited(002867) ] briefing on the company's new self operated stores in January.
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.
