Nike、 The latest quarterly operation data of Adidas in Greater China was poor: Nike’s sales in Greater China fell by 20% year-on-year in the second quarter of fiscal year 2022 (September 1 ~ November 30), mainly due to inventory shortage and transportation obstacles caused by epidemic related blockade; Adidas in the third quarter of fiscal year 2021 From July 1 to September 30, sales in Greater China fell 15% year-on-year, mainly affected by geopolitical situation, restrictive measures related to covid-19 epidemic and natural disasters. Meanwhile, sports shoes and clothing retailer taobo in the third quarter of fiscal year 2022 From September 1 to November 30, the total sales volume of retail and wholesale business recorded a low decline of 20 ~ 30% year-on-year. At present, under the influence of overseas epidemic, the leading brands of international sports shoes and clothing have insufficient factory operation and tight shipping capacity, resulting in the current shortage of inventory and the obstruction of supply chain. The sales situation in Greater China is still depressed, which is an excellent competition for domestic brands Well, chances. China’s leading brands of sports shoes and clothing will continue to benefit from the normalization trend of the rise of the national tide.
Market review: textile and garment sector: last week (December 20 to December 24, 2021), Shanghai Composite Index, Shenzhen Component Index and Shanghai Shenzhen 300 index rose or fell by – 0.39%, – 1.06%, – 0.67% respectively. Textile and garment sector fell 0.73%, ranking 17th among 31 Shenwan industries. Among them, textile manufacturing sector fell 0.03% and clothing and home textile sector fell 0.69% in the past month (November 24 to December 24, 2021) the Shanghai stock index, Shenzhen Component Index and Shanghai Shenzhen 300 index rose or fell by + 0.81%, – 1.31%, + 0.16% respectively, and the textile and garment sector fell by 1.05%, ranking 23rd among the 31 Shenwan industries.
Cosmetics and medical beauty sector: the cosmetics sector rose 1.46% last week, outperforming the Shanghai and Shenzhen 300 index by 2.13pct. The cosmetics sector rose 1.66% in the past month, outperforming the CSI 300 index by 1.50pct. Last week, the medical and American sector fell 5.36%, underperforming the Shanghai and Shenzhen 300 index by 4.69pct. Over the past month, the medical and American sector fell 5.43%, underperforming the Shanghai and Shenzhen 300 index by 5.59pct.
Industry news: in the first half of fiscal year 2022, Dr. Martens’ revenue increased by 16% year-on-year and pre tax profit increased by 46% year-on-year; Guess Greater China is still depressed, and some Asian production capacity is transferred under the supply chain crisis; The first cabinet of Winona national department store was officially opened in Hangzhou Xihu Yintai department store; Chantecaille shantika, a high-end plant beauty brand, was acquired by Nivea’s parent company Beiersdorf; Japan’s “cosmetics chain giant” kekaijialai will withdraw from the Chinese market in an all-round way; Some protease raw material suppliers are out of supply; Jinbo biological sprint for the IPO of the Beijing stock exchange.
Investment suggestions: 1) textile and garment industry: China’s consumption is expected to remain weak in the short term, and the multi-point recurrence of the epidemic has hindered offline passenger flow and overall consumer confidence. However, from the structural point of view, it is considered that the sports shoes and clothing track is still relatively prosperous, and the sales of international leading brands in Greater China are under pressure under the background of blocked supply chain, which has brought good opportunities for the development of domestic brands. We continue to be optimistic about the continuation of the trend of national tide, and recommend Anta sports, Li Ning and Biem.L.Fdlkk Garment Co.Ltd(002832) with high-end positioning; In terms of textile manufacturing, Shenzhou International, Huali Industrial Group Company Limited(300979) , which has full orders, strong growth sustainability and a solid position as a high-quality head manufacturer, is recommended.
2) Cosmetics industry: the cosmetics industry maintains the previous view. After the great promotion in November, the sales turn weak, and there is no surprise on the short-term data end. After the recent head anchor tax event, it is expected to strengthen the construction of brands for self broadcasting. In the medium and long term, we believe that under the background of increasingly fierce industry competition, domestic brands can outperform their peers with differentiated product strength. We continue to recommend Proya Cosmetics Co.Ltd(603605) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) , Shanghai Jahwa United Co.Ltd(600315) .
3) Medical beauty industry: in terms of medical beauty industry, the industry has the characteristics of growth attribute and improvement of compliance degree. It is still in the early stage of development and is optimistic about the growth potential and share improvement opportunities of formal institutions. We suggest paying attention to Imeik Technology Development Co.Ltd(300896) , Bloomage Biotechnology Corporation Limited(688363) with strong upstream product strength and good formality, actively distributing emerging product fields and sharing industry growth dividends.
Risk tip: the macroeconomic growth rate is down, and the terminal consumption is weak due to repeated epidemics or extreme weather, which affects the consumption demand of clothing, cosmetics, medical beauty and other products; The intensification of industry competition and the price war of foreign leading brands will have an adverse impact on China’s benchmark brands; E-commerce platform traffic growth slowed down and traffic costs increased.
