Key investment points
This week, the textile and garment sector lagged behind the market by 2.26pct, * ST Lasha, * ST global, Zhongwang Fabric Co.Ltd(605003) rose ahead. This week (12.06-12.10), SW textile and garment sector rose, SW textile and garment sector rose by 0.88%, Shanghai and Shenzhen 300 rose by 3.14%, and the textile and garment sector lagged behind the market by 2.26 percentage points. Among them, SW textile manufacturing sector fell by 0.64%, and SW garment home textile rose by 1.67%. From the valuation level of the sector, at present, SW textile and garment industry is in an overall way The industry PE calculated by (TTM, excluding negative value) is 21.98 times, which is lower than the average value in recent one year. The top 5 companies in the textile and garment sector this week are: * ST La Xia (+ 15.9%), * ST global (+ 11.99%), Zhongwang Fabric Co.Ltd(605003) (+ 10.88%), Biem.L.Fdlkk Garment Co.Ltd(002832) (+ 8.38%), Zhejiang Aokang Shoes Co.Ltd(603001) (+ 8.08%); the top 5 companies in the textile and garment sector this week are: Ningxia Zhongyin Cashmere Co.Ltd(000982) (- 5.5%), Zhejiang Bangjie Holding Group Co.Ltd(002634) （-5.5%）、 Anhui Korrun Co.Ltd(300577) （-5.46%）、 Shandong Ruyi Woolen Garment Group Co.Ltd(002193) （-5.27%）、 Jiangsu Hongdou Industrial Co.Ltd(600400) （-4.39%）。
This week, the household sector outperformed the market by 8.07pct, Zbom Home Collection Co.Ltd(603801) , Xlinmen Furniture Co.Ltd(603008) , Guangdong Topstrong Living Innovation And Integration Co.Ltd(300749) rose ahead. This week (12.06-12.10), SW furniture sector rose 11.21%, CSI 300 rose 3.14%, and the furniture sector outperformed the market by 8.07 percentage points. From the valuation level of the sector, the industry PE calculated by SW furniture overall method (TTM, excluding negative value) is 27.06 times, which is lower than the average value in recent one year. The top five furniture sector companies this week are: Zbom Home Collection Co.Ltd(603801) (+ 29.4%) and Xlinmen Furniture Co.Ltd(603008) (+ 26.1%), Guangdong Topstrong Living Innovation And Integration Co.Ltd(300749) (+ 19.59%), Jiangshan Oupai Door Industry Co.Ltd(603208) (+ 18.46%), Oppein Home Group Inc(603833) (+ 16.87%); the top five furniture companies in this week’s decline are: Zhejiang Walrus New Material Co.Ltd(003011) (- 2.55%), Der Future Science & Technology Holding Group Co.Ltd(002631) (- 2.2%), Keeson Technology Corporation Limited(603610) (- 0.6%), Ue Furniture Co.Ltd(603600) (0.87%) and Fujian Yongan Forestry (Group) Joint-Stock Co.Ltd(000663) (1.05%).
Important industry news:
1. Specially signed break dance national team, aiming at young people and trendy sports. On December 9, 2020, the International Olympic Committee officially agreed to add break dance to the 2024 Paris Olympic Games, which gave break dance and even hip-hop a new development opportunity. A few days later, the 39th plenary session of the Asian Olympic Council also announced that break dance had become an official competition item of the Hangzhou Asian Games. On December 1, Tebu announced that it had become the official shoe and clothing sponsor of China break dance national team. At present, the players have been wearing Tebu “equipment” to compete in the international arena. This is the first national team sponsored by Tebu and the first official partner of the break dance national team. It is of special significance to both the brand and the development of the sport: the signing of the break dance national team makes Tebu take a big step forward in the field of minority sports and trend culture. In terms of products, Tebu is also making efforts to build professional dance shoes and is determined to become a “brand that best understands Chinese hip-hop dancers”. This time, we sponsored the national team and specially launched the pro version of hip-hop dance products. The logo of the competition dress is designed to interpret the word “dance” with the classic rotation in break dance, combined with Chinese calligraphy and organically combined with the elements of “dragon” and “phoenix”, with a full sense of rhythm and great recognition. The hip-hop track selected by the special step can not only occupy a cognitive label in addition to the running shoes, form a different playing method from the competitors, but also give yourself more confidence in the exploration of sports trend. According to the data provided by the hip-hop dance alliance of the dancers association, in 2020, there were more than 5000 hip-hop dance training studios, 5 million hip-hop dance training people every year, and more than 300000 practitioners in the hip-hop dance industry. At this stage, the hip-hop dance industry is still in the stage of savage growth. Although there is a lot of room for development, it also needs active guidance.
2. L’Oreal is in! “Pure” beauty outlet is coming? Vegan beauty, also known as vegetarian beauty, refers to stripping animal ingredients from cosmetic ingredients, that is, cosmetics cannot contain animal ingredients. On December 8, L’Oreal’s official website announced that it had acquired youthtotheople (yttp), a vegan skin care brand headquartered in California, USA. L’Oreal said that the acquisition would become a very strategic supplement to the loreal Luxe line. Yttp insisted on using clean ingredients, vegan formula and environmentally friendly packaging to produce various “superfoods” , cold pressed extract and natural plant ingredients are used as raw materials to make environmental and healthy skin care products according to scientific customized formula. On the consumer side, yttp has a strong attraction in the United States, Canada, Australia and some European countries. It is marketed through selective distribution channel groups such as D2c e-commerce and Sephora. It is reported that, The brand expects that the sales volume of the brand will exceed US $50 million (about RMB 317 million) in 2021. According to the survey of Grandview research, the world “pure” cosmetics market is growing at an average annual rate of 6.3%. It is expected that the market scale will reach US $20.8 billion by 2025 (about 132 billion yuan). Major beauty groups have also stepped up their layout in this regard. In 2018, Henkel group entered the ranks of vegetarian beauty and launched “naturebox” New beauty brand, focusing on vegetarian washing and beauty products. Earlier than Henkel, Unilever launched love beauty and planet, a personal care brand focusing on young consumers and environmental protection. It focuses on sustainable development and advocates being kind to the earth. In addition, hourglass cosmetics, a high-end cosmetics brand acquired by Unilever, has also transformed into a completely vegetarian brand. In September this year, P & G launched the affordable vegetarian brand dermageek, which targeted the majority of generation Z consumers and took the lead in Wal Mart.
3. A new round of home appliances going to the countryside will be launched soon, and the scope will be expanded to cover furniture and home decoration. On December 8, Wu Xiao, director of the Department of agricultural economics of the national development and Reform Commission, said that while taking multiple measures to increase farmers’ income, develop and expand rural industries to enrich the people, improve the employment support policies for migrant workers, and improve the proportion of farmers’ land value-added income sharing, we should promote the upgrading of rural residents’ consumption and implement rural consumption promotion activities, We will encourage qualified areas to carry out actions to update rural household appliances, implement subsidies for furniture and home improvement and a new round of automobile to the countryside, and promote the renewal of durable consumer goods for rural residents. Compared with the past, the subsidy projects implemented this time have a wider coverage and a wider range of subsidized products, covering furniture, home decoration, household appliances, automobiles and other fields, involving hundreds of well-known brands in the industry or in China. In contrast, the last round of home appliances to the countryside started in Shandong, Sichuan and Henan provinces and was extended to the whole country in February 2009. The subsidy covers motorcycles, computers Water heater (including Cecep Solar Energy Co.Ltd(000591) , gas and electric power), air conditioning, microwave oven, induction cooker and other product fields once stimulated the consumption of rural residents significantly: according to the statistics of the Ministry of Commerce, in 2009, the number of household appliances sold in the countryside relying on household appliances reached 37.68 million, with sales of 69.3 billion yuan. The move to the countryside for home decoration is expected to stimulate the consumption of relevant products in the sinking market and drive a new round of growth.
Important announcement of the company: [ Lancy Co.Ltd(002612) ] announcement of the resolution of the ninth extraordinary general meeting of shareholders in 2021; [ Anzheng Fashion Group Co.Ltd(603839) ] report on repurchase of shares by means of centralized bidding transaction; [Shenzhou International] voluntary announcement – acquisition of 17.28% equity of Anhui Huamao; [ Luolai Lifestyle Technology Co.Ltd(002293) ] suggestive announcement on the release of restricted shares from listing and circulation in the third unlocking period of the first grant of restricted stock incentive plan in 2018.
Investment suggestion: for the clothing and home textile sector, it is suggested to pay attention to Anta sports, Li Ning, the sports clothing leaders with higher prosperity and better competition pattern, and the stocks with valuation and cost performance Hla Group Corp.Ltd(600398) , as well as the leaders of sub track Chow Tai Seng Jewellery Company Limited(002867) , Bosideng, 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. Epidemic situation in Southeast Asia or affecting the capacity release of textile manufacturing industry; 5. Large fluctuations in exchange rates.
