The government work report issued on March 5, 2022 reviewed the important achievements made in 2021 and put forward the expected objectives and key work of this year, which will benefit the growth of the garment industry from promoting the development of e-commerce, promoting the recovery of consumption, deepening economic and trade cooperation, normalized epidemic prevention and control, etc.
The two sessions issued the government work report, and significant progress was made in a number of work in 2021. The government work report was released on March 5, 2022, which reviewed the work achievements of last year and put forward the expected objectives and key work of this year. Last year, the government made important achievements in the fields of economy, people’s livelihood and epidemic prevention and control. Among them, the new tax cuts and fee reductions exceed 1 trillion yuan, which will help increase residents’ disposable income and promote consumption; The coverage rate of the whole course of vaccination exceeds 85%. Under the background of enhanced vaccination coverage, the normalization of epidemic prevention and control is promoted, and offline retail is expected to recover gradually.
The government work report is conducive to the growth of the garment industry from the aspects of promoting the development of e-commerce, promoting the recovery of consumption, deepening economic and trade cooperation and normalizing epidemic prevention and control. 1) Promote the development of digital economy and accelerate the digital transformation of the garment industry, which is conducive to the development of garment e-commerce. Anta and Senma, leading garment brands, continue to increase e-commerce investment, which is expected to continue to benefit; 2) Promote the continuous recovery of consumption, accelerate the deep integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) consumption, and further improve the omni-channel terminal retail of clothing. 3) Deepening multilateral economic and trade cooperation will contribute to the income growth of upstream textile leaders with more foreign trade, such as Shenzhou International, Huali Industrial Group Company Limited(300979) etc. 4) Normalized epidemic prevention and control, timely and controllable marginal relaxation and superposition of epidemic prevention policies, and policy support are expected to stabilize the survival of enterprises on the supply side and continue to increase revenue and reduce expenditure. On the demand side, promote the recovery of residents’ consumption confidence and willingness.
Under the current situation, we continue to pay attention to the targets with good performance. Popular casual wear is recommended Hla Group Corp.Ltd(600398) , Zhejiang Semir Garment Co.Ltd(002563) . Middle and high-end clothing recommendations Shenzhen Ellassay Fashion Co.Ltd(603808) , Biem.L.Fdlkk Garment Co.Ltd(002832) , bosden, Dazzle Fashion Co.Ltd(603587) . In terms of sports clothing, under the background of high industry outlook and demand recovery, it is mainly recommended that Hong Kong stocks Anta sports, Li Ning and Tebu international. The home textile industry Wuxi Online Offline Communication Information Technology Co.Ltd(300959) has a good growth. It is recommended to focus on Luolai Lifestyle Technology Co.Ltd(002293) , and it is recommended to pay attention to Shanghai Shuixing Home Textile Co.Ltd(603365) , Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) . In terms of upstream textile manufacturing, with the effective control of the epidemic at home and abroad and the stabilization of orders at home and abroad, the integrated footwear ODM manufacturer Huali Industrial Group Company Limited(300979) ; Shenzhou International, a manufacturing leader with perfect production capacity layout, is expected to grow steadily in the future. It is suggested to pay attention to Zhejiang Xinao Textiles Inc(603889) .
Plate review: Gem (- 3.75%), Shenzhen Composite Index (- 2.93%), Shanghai and Shenzhen 300 (- 1.68%), Shanghai Composite Index (- 0.11%). The textile manufacturing sub sector increased by 0.47%, and the clothing and home textile sub sector increased by 1.00%.
Announcement of key companies: Zhejiang Jiaxin Silk Corp.Ltd(002404) released the performance express. During the reporting period, the parent company achieved a year-on-year decrease of 27.78% in net profit attributable to listed shareholders; Operating income increased by 42.19% year-on-year Wuhu Fuchun Dye And Weave Co.Ltd(605189) released the 2021 annual report. During the reporting period, the operating revenue increased by 43.57% year-on-year, and the net profit attributable to shareholders of listed companies increased by 105.39% year-on-year Bros Eastern Co.Ltd(601339) released the performance express. During the reporting period, the operating revenue increased by 25.12% year-on-year, and the net profit attributable to listed shareholders increased by 278.09% year-on-year Huali Industrial Group Company Limited(300979) released the performance express. During the reporting period, the operating revenue increased by 25.40% year-on-year, and the net profit attributable to shareholders of listed companies increased by 47.34% year-on-year.
Risk factors: the epidemic situation is uncertain, and the consumption recovery is less than expected.
