Core view
Market review: throughout the week, the CSI 300 index rose by 1.08%, the gem index rose by 2.93%, and the textile and garment industry index rose by 1.95%, which is between the CSI 300 and the gem index. Among them, the textile manufacturing sector rose by 2.11%, and the brand clothing sector rose by 1.8%. In terms of individual stocks, Zhejiang Weixing Industrial Development Co.Ltd(002003) , bosden and Proya Cosmetics Co.Ltd(603605) we covered have achieved positive returns.
Overseas highlights: (1) Hermes’ annual net profit increased by 77%. (2) Kaiyun group may have reached a settlement with the French tax authorities and paid a supplementary tax of 210 million euros. (3) Louis Vuitton raised prices globally, and some high-end handbags increased by nearly 20%.
Important information about the industry and the company: (1) Proya Cosmetics Co.Ltd(603605) : Mr. Fang Yuyou, the director and general manager of the company, reduced 1897000 shares of the company through centralized bidding transactions, accounting for 0.94% of the total share capital of the company; Through block trading, the company has reduced 3.9668 million shares, accounting for 1.97% of the total share capital of the company; A total of 5.8638 million shares of the company were reduced, accounting for 2.92% of the company’s total share capital. (2) Chow Tai Seng Jewellery Company Limited(002867) : the company disclosed that three self operated stores were added in January, located in North China, Northwest China and South China respectively, with a total investment of 12.76 million yuan. The main commodity categories are plain gold and inlaid. (3) Zhejiang Semir Garment Co.Ltd(002563) : Qiu Guanghe, the controlling shareholder of the company, transferred 2.6941 million shares of the company’s shares to Zhong Deda by block trading on February 14, 2022, accounting for 0.10% of the total share capital of the company; Transfer 2.6941 million shares of the company held by Zhang Hongliang, accounting for 0.10% of the total share capital of the company. (4) 2 / 12 ~ 2 / 18 investment and financing of consumer industry: A. Suhua, a synthetic biotechnology skin care brand, completed an angel round of financing of tens of millions of yuan; b. Sevenchic fragrance pen, a new fragrance brand, completed Angel round financing. C. Fujilaguo, a medium and high-end hotel chain brand, completed an angel round of financing of RMB 100 million.
Suggested sector combinations this week: Zhejiang Weixing Industrial Development Co.Ltd(002003) , Huali Industrial Group Company Limited(300979) , Anta sports, Luolai Lifestyle Technology Co.Ltd(002293) and Zhejiang Natural Outdoor Goods Inc(605080) . Last week’s portfolio performance: Zhejiang Weixing Industrial Development Co.Ltd(002003) 17%, Huali Industrial Group Company Limited(300979) – 2%, Anta Sports – 4%, Luolai Lifestyle Technology Co.Ltd(002293) 4% and Zhejiang Natural Outdoor Goods Inc(605080) – 1%.
Investment proposal and investment object
After several consecutive weeks of decline, the market rebounded this week, and high growth track stocks with large early decline also rose (such as cosmetics in optional consumption). It is worth noting that since years ago, a number of sub leaders with underestimated value and high deterministic growth have been rising in a relay. From the previous textile manufacturing, home textile, gold jewelry, down jacket and other sub industries, this week, the share price of Zhejiang Weixing Industrial Development Co.Ltd(002003) leading textile accessories, which we have been focusing on since last year’s China Daily, has reached an all-time high! We believe that with the opening of the peak season after the Spring Festival, some textile manufacturing leaders with global competitiveness in the past 22 years will continue the performance growth since the second half of last year, while other sub industries with consumption toughness, such as home textiles, gold jewelry and other short-term industries, also deserve special attention. For the brand clothing sector, the short-term terminal data lacks a catalyst. With the digestion of the high base, it is expected that the annual operating performance will show a trend of low before high, and there will be more structural opportunities in investment. For the whole year of 2022, we are still optimistic about the two deterministic tracks of high prosperity sportswear and beauty (cosmetics and medical beauty). Among them, the sportswear sector recommends Li Ning (02331, buy), Anta sports (02020, buy), Huali Industrial Group Company Limited(300979) (300979, buy) and Shenzhou International (02313, buy). It is suggested to pay attention to Tebu International (01368, buy), Large beauty sector is optimistic about Proya Cosmetics Co.Ltd(603605) (603605, buy), Yunnan Botanee Bio-Technology Group Co.Ltd(300957) (300957, overweight), it is recommended to pay attention to Shanghai Jahwa United Co.Ltd(600315) (600315, overweight), Bloomage Biotechnology Corporation Limited(688363) (688363, Unrated) and Imeik Technology Development Co.Ltd(300896) (300896, buy). The traditional clothing sector recommends Zhejiang Weixing Industrial Development Co.Ltd(002003) (002003, buy), Bosideng (03998, buy), Zhejiang Natural Outdoor Goods Inc(605080) (605080, buy), Luolai Lifestyle Technology Co.Ltd(002293) (002293, overweight), Zhejiang Semir Garment Co.Ltd(002563) (002563, buy), etc. In addition, it is recommended to pay attention to Baoxiniao Holding Co.Ltd(002154) (002154, not rated), Biem.L.Fdlkk Garment Co.Ltd(002832) (002832, not rated), etc.
Risk tips
The repeated global epidemic, the pressure of economic slowdown on China’s retail terminals, trade friction, cotton price and RMB exchange rate fluctuations, etc.
