Core view
Market review: throughout the week, the CSI 300 index fell 1.68%, the gem index fell 3.75%, and the textile and garment industry index rose 0.92%, which was better than the CSI 300 and the gem index. Among them, the textile manufacturing sector rose 1.28%, and the brand clothing sector rose 0.61%. In terms of individual stocks, we have achieved positive returns on Zhejiang Weixing Industrial Development Co.Ltd(002003) , Lao Feng Xiang Co.Ltd(600612) and Hla Group Corp.Ltd(600398) .
Overseas highlights: (1) beauty fashion software service provider “play beauty mobile” will be listed through spac trading. (2) Fanatics, the world’s largest authorized sporting goods retailer, raised another $1.5 billion. (3) Adidas completed the sale of Reebok Reebok brand and will return the proceeds to shareholders through a € 1.5 billion share repurchase program.
Important information of industry and company: (1) Shenzhou International: the company announced that it expects the group’s net profit after tax to be about RMB 3.1 billion to 3.5 billion in 2021, a year-on-year decrease of 31% to 39%. (2) Lao Feng Xiang Co.Ltd(600612) : the company announced that in 2021, the company achieved an operating revenue of 58.691 billion yuan, a year-on-year increase of 13.47%; The net profit attributable to shareholders of listed companies was 1.876 billion yuan, a year-on-year increase of 18.3%. (3) Shanghai Haohai Biological Technology Co.Ltd(688366) : the company issued a performance express. In 2021, the company’s operating revenue was 1.766 billion yuan, a year-on-year increase of 32.57%; The net profit attributable to the shareholders of the parent company was 352 million yuan, a year-on-year increase of 53.19%; The basic earnings per share is 2.00 yuan. (4) 2 / 26 ~ 3 / 4 investment and financing of consumer industry: A. natural skin care brand Shanchuan completed an angel round of financing of millions of yuan; b. Children’s personal care brand turtle father completed nearly 100 million yuan of pre-A round of financing. C. The fashion accessories brand myomy has completed an angel round of financing of nearly ten million yuan.
Suggested sector combinations this week: Zhejiang Weixing Industrial Development Co.Ltd(002003) , Huali Industrial Group Company Limited(300979) , Anta sports, Baoxiniao Holding Co.Ltd(002154) and Zhejiang Natural Outdoor Goods Inc(605080) . Last week’s portfolio performance: Zhejiang Weixing Industrial Development Co.Ltd(002003) 9%, Huali Industrial Group Company Limited(300979) 5%, Anta Sports – 5%, Baoxiniao Holding Co.Ltd(002154) 0% and Zhejiang Natural Outdoor Goods Inc(605080) -2%.
Investment proposal and investment object
Affected by external factors such as the Russian Ukrainian war, the A-share market fluctuated greatly this week. On the whole, the trend of high growth track stocks with large decline this year was relatively stronger this week. Under such a market structure, the overall performance of the textile and garment sector is between the CSI 300 and the gem index. In the context of the sharp retreat of the market this year, a number of sub category leaders with underestimated value and high deterministic growth in the textile and clothing sector show a good upward trend, especially some textile manufacturing leaders with global competitiveness. We expect that the performance of 22 years is expected to continue the rapid growth since the second half of last year. At present, the brand clothing sector lacks short-term catalyst. According to our latest grassroots research information, affected by many factors such as the spread of the national epidemic in February and the relative downturn of the economy and capital market, most of the retail end of the brand clothing sector performed mediocrely from January to February. Considering the base number in the same period last year, it is expected that the performance of most brand clothing companies in the whole year will show a trend of low before high, and there will be more structural opportunities in investment. From the perspective of 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) ( Huali Industrial Group Company Limited(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) ( Proya Cosmetics Co.Ltd(603605) , buy), Yunnan Botanee Bio-Technology Group Co.Ltd(300957) ( Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , overweight), it is suggested to pay attention to Shanghai Jahwa United Co.Ltd(600315) ( Shanghai Jahwa United Co.Ltd(600315) , overweight), Bloomage Biotechnology Corporation Limited(688363) ( Bloomage Biotechnology Corporation Limited(688363) , Unrated) and Imeik Technology Development Co.Ltd(300896) ( Imeik Technology Development Co.Ltd(300896) , buy). The traditional clothing sector recommends Zhejiang Weixing Industrial Development Co.Ltd(002003) ( Zhejiang Weixing Industrial Development Co.Ltd(002003) , buy), Baoxiniao Holding Co.Ltd(002154) ( Baoxiniao Holding Co.Ltd(002154) , buy) Baoxiniao Holding Co.Ltd(002154) ( Baoxiniao Holding Co.Ltd(002154) , buy), annunciator ( Baoxiniao Holding Co.Ltd(002154) , buy), Bosideng (03998, buy), Zhejiang nature ( Zhejiang Natural Outdoor Goods Inc(605080) , buy), Luolai Lifestyle Technology Co.Ltd(002293) ( Luolai Lifestyle Technology Co.Ltd(002293) , overweight), Zhejiang Semir Garment Co.Ltd(002563) ( Zhejiang Semir Garment Co.Ltd(002563) , buy), etc. In addition, it is suggested to pay attention to Biem.L.Fdlkk Garment Co.Ltd(002832) ( Biem.L.Fdlkk Garment Co.Ltd(002832) , not rated) and leading companies of gold and jewelry.
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.
