Core view
Market review: throughout the week, the CSI 300 index rose 0.39%, the gem index rose 0.78%, and the textile and garment industry index rose 2.8%, which was stronger than the CSI 300 and the gem index, including the textile manufacturing sector rose 3.39%, and the brand clothing sector rose 2.32%. In terms of individual stocks, Shanghai Shuixing Home Textile Co.Ltd(603365) , Zhejiang Semir Garment Co.Ltd(002563) and Dazzle Fashion Co.Ltd(603587) we covered achieved positive returns.
Overseas highlights: (1) Louis Vuitton launched his first skiing series. (2) Prada group’s prospective successor revealed that it would layout the second-hand luxury market.
Important information of industry and company: (1) Lancy Co.Ltd(002612) : Shen Bingyun, the shareholder of the company, reduced 1987.69 million shares of the company from August 23, 2021 to November 30, 2021, accounting for 4.5% of the total shares of the company. (2) Proya Cosmetics Co.Ltd(603605) : from November 1 to December 24, 2021, Yuyou, the shareholder of the company, reduced 3274700 shares of the company through centralized bidding and block trading, accounting for 1.6291% of the total share capital of the company. After this equity change, the proportion of shares held by Fang Yuyou will be reduced from 19.7013% to 18.0826%. (3) Baoxiniao Holding Co.Ltd(002154) : as of December 31, 2021, Xie Haijing’s share reduction plan has been implemented, with a cumulative reduction of 565400 shares, accounting for 0.0464% of the total share capital. (4) Investment and financing of consumer industry from December 25 to December 31: A. Xiaoya Co., Ltd., a cosmetics technology company, completed a round C financing of more than 100 million yuan; b. SPES Peisi, a scientific research head care brand, completed a round of financing of nearly 200 million yuan. C. The essential oil skin care brand naturally completed an angel round of financing of RMB 10 million.
Suggested plate combinations this week: Li Ning, Anta sports, Huali Industrial Group Company Limited(300979) , Zhejiang Weixing Industrial Development Co.Ltd(002003) , Bosideng. Last week’s portfolio performance: Li Ning 5%, Anta Sports 1%, Huali Industrial Group Company Limited(300979) 2%, Zhejiang Weixing Industrial Development Co.Ltd(002003) -6% and Bosideng 1%.
Investment proposal and investment object
The curtain came to an end in 2021. The annual textile and garment (CITIC) industry index rose by 6.84%, ranking 16th among 30 primary sub industries, of which the brand clothing sub industry rose by 10.82% and the textile manufacturing sub industry rose by 0.92%. In the first half of the year, under the background of the recovery of China’s end consumption and the achievement growth of brand leaders, the brand clothing sector performed actively and the institutional attention increased continuously, In the second half of the year, the consumption structure of hot outside and cold inside appeared, and the stock price performance of the leading export manufacturers was significantly stronger than that of brand clothing, which constituted the investment path of the textile and clothing sector throughout the year. In 2022, under the guidance of external demand, the export manufacturing boom is highly uncertain, and some leading manufacturing companies that gradually realize the logic of continuous performance growth are expected to continue to enjoy the valuation premium; The brand clothing sector is expected to show a trend of low before and high after the whole year. Under the policy support, the structural opportunities in the future are still considerable. In terms of sub industries, we still prefer high prosperity sportswear and big beauty (cosmetics and medical beauty) in the medium and long term. In the sportswear sector, Li Ning (02331, buy), Anta sports (02020, buy), Huali Industrial Group Company Limited(300979) (300979, buy) and Shenzhou International (02313, buy) are recommended to pay attention to Tebu International (01368, buy), Large beauty sector is optimistic about Proya Cosmetics Co.Ltd(603605) (603605, buy), Yunnan Botanee Bio-Technology Group Co.Ltd(300957) (300957, overweight), it is recommended to pay attention to Shanghai Jahwa United Co.Ltd(600315) (600315, overweight), Bloomage Biotechnology Corporation Limited(688363) (688363, Unrated) and Imeik Technology Development Co.Ltd(300896) (300896, Unrated). The traditional clothing sector recommends Zhejiang Weixing Industrial Development Co.Ltd(002003) (002003, buy), Bosideng (03998, buy), Zhejiang Natural Outdoor Goods Inc(605080) (605080, buy), Luolai Lifestyle Technology Co.Ltd(002293) (002293, overweight), Zhejiang Semir Garment Co.Ltd(002563) (002563, buy), etc. It is recommended to pay attention to Baoxiniao Holding Co.Ltd(002154) (002154, not rated), Biem.L.Fdlkk Garment Co.Ltd(002832) (002832, not rated), etc. The short-term stock price of Shenzhou International, a sports manufacturing giant, is expected to fluctuate greatly due to the outbreak in Ningbo plant. However, we believe that the short-term challenge will not change the company’s competitive advantage in the global industrial chain, and we are still optimistic about the company’s medium and long-term prospects.
Risk tip: the recurrence of global epidemic, the pressure of economic slowdown on China’s retail terminals, trade friction, cotton price and RMB exchange rate fluctuation, etc.
