Core view
Market review: throughout the week, the CSI 300 index fell 4.22%, the gem index fell 3.03%, and the textile and garment industry index fell 4.78%, which was weaker than the CSI 300 and the gem index. Among them, the textile manufacturing sector fell 4.93%, and the brand clothing sector fell 4.65%. We have made Poten Environment Group Co.Ltd(603603) Poten Environment Group Co.Ltd(603603) ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ ɛ 35.
Overseas highlights: (1) adidas Group’s Greater China sales continued to plummet. (2) Gap group exceeded expectations in the fourth quarter. (3) Haigang city has not disclosed sales for three consecutive years.
Important information of industry and company: (1) Imeik Technology Development Co.Ltd(300896) : the operating revenue of the company in 2021 is about 1.448 billion yuan, with a year-on-year increase of 104.13%; The corresponding attributable net profit was about 958 million yuan, a year-on-year increase of 117.81%.
(2) Proya Cosmetics Co.Ltd(603605) : from January to February 2022, the company achieved a total operating revenue of about 630 million yuan, an increase of about 30% year-on-year; The net profit attributable to shareholders of listed companies was about 60 million yuan, with a year-on-year increase of about 35%.
(3) Bloomage Biotechnology Corporation Limited(688363) : from January to February 2022, the company achieved a total operating revenue of about 640 million yuan, with a year-on-year increase of about 55%, of which the growth of functional skin care business is still strong. (4) Shenzhen Ellassay Fashion Co.Ltd(603808) : the company achieved revenue of 2.3-2.4 billion yuan in 2021, with a year-on-year increase of 17.2% – 22.3%; The net profit ranged from 310 million to 330 million yuan, with a year-on-year decrease of 25.8% – 30.3%, which was mainly affected by the one-time income obtained by transferring part of the equity of the subsidiary baiqiu network in 2020.
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) -7%, Huali Industrial Group Company Limited(300979) -16%, Anta Sports – 14%, Baoxiniao Holding Co.Ltd(002154) -10% and Zhejiang Natural Outdoor Goods Inc(605080) -13%.
Investment proposal and investment object
The market continued to be weak this week, and the textile and garment sector as a whole also had a large decline. In the middle of the week, based on political considerations, the Norwegian sovereign fund announced that Li Ning would be excluded from the fund investment, which triggered a significant adjustment in the sports apparel sector of Hong Kong stocks under the fragile mood. However, from the perspective of fundamentals, on the one hand, at the end of 2021, the proportion of equity held by Norwegian sovereign funds in Anta, Shenzhou and Li Ning has been less than 1%, with little real impact; On the other hand, from the perspective of terminal retail, from January to February this year, under the background of weak economic environment and repeated epidemic in China, the leader of sportswear still maintained a good flow growth, and the decline of Adidas sales in Greater China also reflected the gradual increase of the share of local sports brands from one side. However, we need to pay attention to the challenge to the overall brand retail caused by the multi-point frequent outbreak of the epidemic in China since March. Export manufacturing facing overseas demand in the short term is still a sub industry with relatively higher certainty in the sector. Throughout the year, we continue to be 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), Bosideng (03998, buy), Zhejiang Natural Outdoor Goods Inc(605080) ( 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.
