Key investment points
This week, the textile and garment sector lagged behind the market by 0.77pct, Jiangsu Sunshine Co.Ltd(600220) , St Bailong, st day's first increase was ahead. This week (03.07-03.11), SW textile and garment sector fell 4.99%, Shanghai and Shenzhen 300 fell 4.22%, and textile and garment sector lagged behind the market by 0.77pct. Among them, SW textile manufacturing sector fell 4.75%, and SW clothing and home textile fell 4.74%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 16.91 times, which is lower than the average value in recent one year. The top five companies in the textile and garment sector were: Jiangsu Sunshine Co.Ltd(600220) (+ 31.39%), St Bailong (+ 9.93%), St Tianshou (+ 3.29%), Shanghai Sanmao Enterprise (Group) Co.Ltd(600689) (+ 3.02%) and Xinlong Holding (Group) Company Ltd(000955) (+ 2.63%).
This week, the household goods sector lagged behind the market by 1.75pct, and the stock prices of Vohringer Home Technology Co.Ltd(603226) , Nanjing Olo Home Furnishing Co.Ltd(603326) , Healthcare Co.Ltd(603313) were relatively stable. This week (03.07-03.11), the SW household goods sector fell 5.98%, the CSI 300 fell 4.22%, and the household goods sector lagged behind the market by 1.75pct. From the valuation level of the sector, the current industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 22.48 times and that of SW furniture is 21.08 times, which is lower than the average value in recent one year. The top five companies in the furniture sector this week are: Vohringer Home Technology Co.Ltd(603226) (+ 0%), Nanjing Olo Home Furnishing Co.Ltd(603326) (- 0.11%), Healthcare Co.Ltd(603313) (- 2.65%), Henglin Home Furnishings Co.Ltd(603661) (- 2.91%), Guangxi Fenglin Wood Industry Group Co.Ltd(601996) (- 3.07%).
Important industry news:
\u3000\u30001. Li Ning Sports established a children's wear company with 250 million yuan. Recently, Li Ning (China) added a new foreign investment. The investment enterprise is Li Ning Sports children's wear Co., Ltd., with an investment proportion of 100%. The registered capital is 250 million yuan. Li Ning young, a children's clothing brand of Li Ning, was established on January 1, 2018. In addition to participating in and holding Li Ning's "3 + 1" Street Basketball League, bcbc basketball training camp, Wade's China tour and other activities, Li Ning young is also good at combining sports fashion with trend culture, including parent-child models, Wade series, Disney cooperation models and Basketball Club Co branded models. As of June 30, 2021, Li Ning Young's business has covered 31 provinces, municipalities and autonomous regions, with 1041 stores. It has gradually established its own digital marketing matrix, made full use of and integrated the existing KOL, sports talent, star celebrities, partners, community marketing and other publicity resources, and expanded the influence of brands and products, Continuously expand new sales channels. With the introduction of a series of national policies, the government will continue to pay more attention to the health of teenagers, and the market space in subdivided fields will be gradually developed. Li Ning set up a children's wear company, with its expanded business scope, accurate market positioning and differentiated competition strategy, which is expected to bring favorable market share to Li Ning young in the future.
\u3000\u30002. Adidas announced its financial results for 2021. On March 9, Adidas, a German sports brand, announced its financial results for 2021. Despite the continuous impact of the epidemic and the challenge of supply chain shortage in some markets, Adidas sales worldwide in 2021 are still good. In fiscal year 2021, Adidas's annual revenue reached 21.234 billion euros, a year-on-year increase of 15%. The gross profit was 10.765 billion euros, with a year-on-year increase of 17% and a gross profit margin of 50.7%. The revenue of the European local market was 7.76 billion euros, with a growth rate of 24%. In the past, the annual revenue of the "engine" Chinese market was 4.6 billion euros, with a year-on-year growth of only 3%; North America, the main battlefield of competitive products, had a revenue of 5.1 billion euros, with a growth rate of 16.6%. The sluggish performance of Greater China made the whole Asia Pacific region only record a revenue of 6.78 billion euros, while the Latin American market in the region grew significantly, with sales increasing by 47% year-on-year. In terms of product segmentation, the sales of footwear products accounted for nearly half of the total sales, with a year-on-year increase of 13%, while the sales of clothing and accessories increased by about 20%. According to the financial report, the brand expects to maintain a sales growth of 11% - 13% in 2022, and the gross profit margin will be slightly increased to 51.5% - 52.0%.
\u3000\u30003. The operating income of Senma in 2021 was 15.4 billion yuan. On the evening of March 9, Zhejiang Semir Garment Co.Ltd(002563) released the performance express. In 2021, the company's operating revenue was about 15.419 billion yuan, a year-on-year increase of 1.41%; The net profit attributable to shareholders of listed companies was about 1.486 billion yuan, an increase of 84.39% year-on-year. When it comes to the reasons for the slight increase in revenue but the sharp rise in net profit, Zhejiang Semir Garment Co.Ltd(002563) said that it was mainly because the operating performance of the company was affected by the epidemic and the loss of French kidiliz group in the same period of last year, and the base was low. In 2018, Zhejiang Semir Garment Co.Ltd(002563) successively joined hands with TCP, a leading children's clothing brand in North America, cocotree, a youth clothing brand, and kidiliz group in France. However, this series of operations did not bring ideal results to the company, but dragged down the performance. After the consolidation, the global business loss of kidiliz group expanded, which had a great impact on the performance of Zhejiang Semir Garment Co.Ltd(002563) . At the beginning of September 2020, Semir completely divested the relevant businesses of the French kidiliz group. If the consolidated loss of French kidiliz group in the same period of last year is excluded, the net profit attributable to shareholders of Listed Companies in 2020 is 1.302 billion yuan. Based on comparable caliber, the growth rate of this data in 2021 is expected to be 14.06%.
Important announcement of the company: [ Xin Hee Co.Ltd(003016) ] repurchase report; [ Biem.L.Fdlkk Garment Co.Ltd(002832) ] announcement on correction of previous accounting errors; [ Zhejiang Semir Garment Co.Ltd(002563) ] 2021 annual performance express; [ Shenzhen Ellassay Fashion Co.Ltd(603808) ] announcement on main business data in 2021.
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. Large fluctuations in exchange rates
