Core view
Market review: throughout the week, the CSI 300 index rose 3.14%, the gem index fell 0.34%, and the textile and garment industry index rose 0.77%, which is between the CSI 300 and the gem index. Among them, the textile manufacturing sector rose 0.2%, and the brand clothing sector rose 1.22%. In terms of individual stocks, Zhejiang Weixing Industrial Development Co.Ltd(002003) , Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) and Zhejiang Semir Garment Co.Ltd(002563) we covered achieved positive returns.
Overseas highlights: (1) Nike sued Adidas knitted shoes for deliberate plagiarism, demanding that they be prohibited from being imported into the U.S. market. (2) lululemon’s latest quarterly sales increased by 30% to $1.5 billion, but its expectation of “Smart Mirror” mirror was significantly reduced. (3) LVMH group’s private equity fund lcatterton plans to raise $7.75 billion.
Important information of industry and company: (1) Shenzhou International: Ningbo Ruiding new materials Co., Ltd., an indirect wholly-owned subsidiary of the company, plans to acquire 17.28% equity of Anhui Huamao Group Co., Ltd. from Anqing urban construction investment development (Group) Co., Ltd., with a transaction consideration of RMB 480 million. (2) Imeik Technology Development Co.Ltd(300896) : gannettpeak, the shareholder of the company, has reduced about 2.14 million shares of the company through centralized bidding and block trading, and the cumulative change of shareholding ratio has reached 1% of the total number of shares of the company. (3) Luolai Lifestyle Technology Co.Ltd(002293) : the company used 40 million yuan of raised funds to purchase financial products on December 6, with an estimated annualized rate of return of 1.65% – 3.45%. (4) investment and financing situation of 12/04~12/10 consumption industry: A. China’s original luxury bag brand Duan Mu Liang Jin completes a new round of strategic financing; B. perfume fragrance brand DOCUMENTS completes the angel round financing; C. scalp care research brand to ink laboratory completes a new round of strategic financing.
Suggested plate combinations this week: Li Ning, Anta sports, Huali Industrial Group Company Limited(300979) , Zhejiang Weixing Industrial Development Co.Ltd(002003) , Bosideng. Last week’s portfolio performance: Li Ning 7%, Anta Sports 1%, Huali Industrial Group Company Limited(300979) 6%, Zhejiang Weixing Industrial Development Co.Ltd(002003) 6% and Bosideng – 3%.
Investment proposal and investment object
The central economic work conference closed on Friday. In the direction of consumption, the conference put forward the general direction of implementing the strategy of expanding domestic demand and enhancing the endogenous driving force of development. On the one hand, in response to the impact of the epidemic and economic slowdown, we will continue to implement new tax cuts, fees and profits for market players, and on the other hand, we rely on China’s huge consumer market, Expanding the scale of domestic demand is conducive to coping with the impact of external demand uncertainty. Under the basic tone of policy supporting the economy, we believe that the pessimistic expectation of the market on the fundamentals of optional consumption is expected to be gradually repaired as the economy bottoms out. We judge that the structural opportunities of the sector in 2022 are still objective. On the one hand, under the guidance of external demand, the steady growth of performance is expected to usher in the improvement of valuation; On the other hand, under the low valuation of brand enterprises, the subsequent improvement of fundamentals is also expected to bring more configuration opportunities. In terms of sub industries, our first choice in the medium and long term is still high prosperity sportswear and big 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) and taobo (06110, overweight), The 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), Guangdong Marubi Biotechnology Co.Ltd(603983) (603983, overweight), Bloomage Biotechnology Corporation Limited(688363) (688363, Unrated) and Imeik Technology Development Co.Ltd(300896) (300896, Unrated). 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. 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), Zhejiang Sunrise Garment Group Co.Ltd(605138) (605138, not rated). In the short term, it is expected that the performance of the secondary market will still be more active for the manufacturing leaders with the competitiveness of global subdivided industries in the sector.
Risk statement
The repeated global epidemic, the pressure of economic slowdown on China’s retail terminals, trade friction, cotton price and RMB exchange rate fluctuations, etc.
