This week’s special topic: the continuation of the national trend, cultural confidence brings new opportunities for domestic brands: the rise of the national trend, and the core driving force is the upgrading of the manufacturing industry. In recent years, domestic brands have gradually got rid of the low-quality and low-end image, and the market recognition and attention have been continuously improved. Guochao products are widely loved by the emerging main consumers after 95. The core driving force of the rise of national tide is the upgrading of manufacturing industry. On the one hand, domestic brands build core market competitiveness by improving design level and product quality. On the other hand, they fully tap their own connotation, create a brand culture with market attraction, and obtain market pricing power with brand value. Generation Z is an important force of national tide consumption. China’s generation Z population grew up in a period of rapid economic development in China. During this period, domestic brands have also experienced the transformation and upgrading from OEM to brand management, from “manufacturing” to “quality manufacturing” and “intelligent manufacturing”. The emerging consumer groups of generation Z have a stronger sense of identity and self-confidence in domestic products. They no longer blindly pursue “international brands”, but prefer to choose personalized and national fashion products to show their fashion taste. Products that gain consumers’ minds with national tide elements are constantly emerging. For example, Li Ning’s “Enlightenment” series shine brightly at the 2018 New York Fashion Week, officially opening the curtain of the national trend; In 2020, “Dunhuang Tuo” running shoes and “only Chu has talent” basketball shoes were successively launched; In 2021, Jackie Chan’s joint Kung Fu series winter clothes will be launched. KT6 “high mountains and flowing water” series launched by Anta in 2020; Kt7 “blank” series launched in 2021 contains the design concept of “water is invisible, but there are 10000 shapes”.
Current view: we believe that the improvement of real estate delivery data next year is expected to promote the prosperity of the furniture industry, release the demand for population structure and stock housing renovation, and support the strong medium and long-term demand of the industry; The rise of raw material prices will accelerate the reshuffle of the industry, and the advantages of leading enterprises are expected to expand. (1) Furniture: it is recommended to pay attention to Jason Furniture (Hangzhou) Co.Ltd(603816) , Minhua holdings, Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) , Zbom Home Collection Co.Ltd(603801) , Goldenhome Living Co.Ltd(603180) . (2) papermaking: it is recommended to pay attention to Shandong Sun Paper Co.Ltd(002078) , Shandong Bohui Paper Industry Co.Ltd(600966) , Shanying International Holdings Co.Ltd(600567) , Hangzhou Haoyue Personal Care Co.Ltd(605009) , Chongqing Baiya Sanitary Products Co.Ltd(003006) . (3) entertainment products: it is recommended to pay attention to Shanghai M&G Stationery Inc(603899) . (4) textile and clothing: it is recommended to pay attention to Winner Medical Co.Ltd(300888) , Huali Industrial Group Company Limited(300979) Wait. In terms of Hong Kong stocks, it is suggested to pay attention to Shenzhou International, Anta sports, Li Ning, Tebu international, etc.
Market review this week: this week, the Shanghai Composite Index rose 1.63%, and the light manufacturing industry rose 2.53%, slightly outperforming the market. The textile and garment industry rose 0.88% this week, slightly losing the market. Among them, the paper sector fell 0.61%, the packaging and printing sector fell 1.53%, the furniture sector rose 11.21%, the entertainment sector rose 5.32%, and other household light industry sectors rose 3.52%; The textile manufacturing sector fell 0.98%, and the clothing and home textile sector rose 3.84%. The top three gainers in the light industry manufacturing industry this week were Zhibang shares (29.4%), Xlinmen Furniture Co.Ltd(603008) (26.1%), Xiamen R&T Plumbing Technology Co.Ltd(002790) (21.2%); the top three gainers were Guangdong New Grand Long Packing Co.Ltd(002836) (- 13.29%), Anhui Genuine New Materials Co.Ltd(603429) (- 11.95%), Shantou Dongfeng Printing Co.Ltd(601515) (- 11.11%). The top three gainers in the textile and garment industry were * ST lashia (15.9%), * ST global (11.99%), Zhongwang Fabric Co.Ltd(605003) (10.88%); and the top three gainers were * ST medium cashmere （ -5.5%）、 Zhejiang Bangjie Holding Group Co.Ltd(002634) （ -5.5%）、 Anhui Korrun Co.Ltd(300577) （ -5.46%）。
Risk warning: the price of raw materials fluctuates greatly; Risk of terminal demand slump; Exchange rate fluctuation risk.
