The textile and garment sector outperformed the market by 2.07 PCT this week, with Souyute Group Co.Ltd(002503) , Zhejiang Kanglongda Special Protection Technology Co.Ltd(603665) , Hubei Mailyard Share Co.Ltd(600107) rising ahead. This week (02.28-03.04), SW textile and garment sector rose 0.39%, CSI 300 fell 1.68%, and textile and garment sector outperformed the market by 2.07pct. Among them, SW textile manufacturing sector rose 0.47%, and SW clothing and home textile rose 1%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 18.19 times, which is lower than the average value in recent one year. The top five companies in the textile and garment sector were: Souyute Group Co.Ltd(002503) (+ 17.48%), Zhejiang Kanglongda Special Protection Technology Co.Ltd(603665) (+ 13.82%), Hubei Mailyard Share Co.Ltd(600107) (+ 10.41%), Zhejiang Weixing Industrial Development Co.Ltd(002003) (+ 9.1%), Guangdong Bobaolon Co.Ltd(002776) (+ 8.96%).
Household goods sector outperformed the market by 1.15pct this week, with Henglin Home Furnishings Co.Ltd(603661) , Jiangshan Oupai Door Industry Co.Ltd(603208) , Qumei Home Furnishings Group Co.Ltd(603818) rising ahead. This week (02.28-03.04), SW household goods sector fell 0.53%, CSI 300 fell 1.68%, and furniture sector outperformed the market by 1.15pct. From the valuation level of the sector, the current industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 23.84 times and that of SW furniture is 22.39 times, which is lower than the average value in recent one year. The top five companies in the furniture sector were: Henglin Home Furnishings Co.Ltd(603661) (+ 9.36%), Jiangshan Oupai Door Industry Co.Ltd(603208) (+ 7.26%), Qumei Home Furnishings Group Co.Ltd(603818) (+ 5.33%), Vohringer Home Technology Co.Ltd(603226) (+ 3.5%), A-Zenith Home Furnishings Co.Ltd(603389) (+ 3.19%).
Important industry news:
\u3000\u30001. Not only do clothes, FILA also opens hotels. Recently, FILA FILA and Hyatt group held a cooperation signing ceremony at Park Hyatt Hotel in Shanghai and announced to jointly build a boutique sports lifestyle Hotel Boutique Hotel - "filahouse". Filahouse is located in Shanghai xihongqiao business district and is expected to officially open at the end of 2024. Filahouse is located in building 5, Shanghai Anta center, the global retail headquarters of Anta Group. The hotel has 10 floors and a construction area of 11946 square meters. The Hotel integrates accommodation, catering, sports, conference affairs, retail, exhibition planning and other business forms, and forms a one-stop linkage with the complex ecosystem of Anta center. It is planned to build 120 guest rooms and Suites, 1 full-time restaurant, 1 Member Lounge, 3 multi-functional meeting and activity spaces, fitness center, indoor swimming pool and other supporting facilities. The signing of FILA FILA and Hyatt Hotel Group is another new attempt of cross-border business in FILA China, or it will become a new case of independent brand hotels of educational products enterprises.
\u3000\u30002. Nike cut agents wholesale. Founded in 1989, Footlocker is a world-renowned sportswear retailer with more than 3000 stores in the United States, Canada, Europe, Australia and New Zealand. However, driven by Nike's direct to consumer program (DTC), Footlocker's share price plunged, falling more than 16% in pre session trading on Friday. The retailer expects its revenue to decline by 4% - 6% in 2022. In fact, Nike has announced its online direct marketing strategy as early as 2017, opening the DTC transformation facing consumers. The epidemic has greatly accelerated this process. According to footwearnews, Nike has terminated wholesale transactions with retailers such as Zappos, Dillard's, DSW, Urban Outfitters and shoeshow, and many retailers are unable to sell Nike products in stores. Nike also reduced the number of products provided to existing suppliers to integrate distribution channels.
\u3000\u30003. H & M announced that it would suspend all sales in Russia. On March 2 local time, Swedish clothing brand H & M announced that it would suspend all sales in Russia, the New York Times reported. H & M said that the group would continue to monitor and assess developments and that group representatives were in dialogue with all relevant stakeholders. In addition, H & M foundation has contributed to save the children and UNHCR. At present, the home page of H & M group's Russian website has shown "temporarily closed". Russia is the sixth largest market for H & M, accounting for about 4% of the group's sales in the fourth quarter of 2021. In addition, according to the group's 2020 annual report, it currently has more than 150 stores in Russia, all of which will now be closed. Earlier, apple and other companies also announced the "suspension of sales" in Russia, fast-selling brands such as Nike announced the closure of online business, and Hollywood film companies such as Disney and Warner also announced the suspension of new films in Russia
Important announcement of the company: [ Biem.L.Fdlkk Garment Co.Ltd(002832) ] suggestive announcement of the expiration of the lock-in period of phase III ESOP; [Shenzhou International] profit warning; [ Bros Eastern Co.Ltd(601339) ] announcement of 2021 annual performance express; [ Huali Industrial Group Company Limited(300979) ] announcement of 2021 annual performance express; [ Biem.L.Fdlkk Garment Co.Ltd(002832) ] announcement on delisting of biyin convertible bonds; [ Lao Feng Xiang Co.Ltd(600612) ] announcement of 2021 annual performance express.
Investment suggestion: for the clothing and home textile sector, it is suggested to pay attention to Anta sports and Li Ning, the leaders of sportswear with higher prosperity and better competition pattern, as well as 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. The epidemic situation in Southeast Asia may affect the production capacity release of the textile manufacturing industry; 5. The exchange rate fluctuates greatly.
