Review 2021: the textile and garment (Shenwan) index outperformed the CSI 300 index by 7.80pct. As of December 30, 2021, the textile and garment (Shenwan) sector has increased by 2.24% this year. In terms of secondary sub sectors, the textile manufacturing sector has increased by 1.65% and the clothing and home textile sector has increased by 3.41%. The increase of the textile manufacturing sector is less than that of the clothing and home textile sector, but both outperform the Shanghai and Shenzhen 300 index.
Investment main line 1: textile manufacturing: orders are full, cotton prices continue to rise, driving performance growth. In the short term, due to the repeated impact of the epidemic in Southeast Asia, orders continue to flow back, the overall orders at the manufacturing end are full, and the upward price of raw materials drives the performance growth of manufacturing companies; In the medium and long term, high-quality manufacturing companies continue to strengthen R & D and innovation, improve product competitiveness, have strong bargaining power of raw materials and order response speed, and are expected to enhance customer stickiness and open the medium and high-end product market. At the same time, we expect that with the improvement of the epidemic situation, the international sea freight will decline, which will benefit textile manufacturing companies with high overseas revenue, It is recommended to pay attention to clothing accessories faucet Zhejiang Weixing Industrial Development Co.Ltd(002003) (002003. SZ) and sports shoes manufacturing faucet Huali Industrial Group Company Limited(300979) (300979. SZ).
Investment main line 2: sports shoes and clothing: seize the opportunity of the Winter Olympic Games and keep the high view. In the short term, the Winter Olympics is approaching, which will effectively drive people’s sports enthusiasm, add the catalyst of Xinjiang cotton incident, improve consumers’ recognition of domestic brands, and China’s sports shoes and clothing industry is expected to maintain a high momentum; In the medium and long term, domestic brands seize the opportunity of the rise of the national tide, strengthen product R & D investment and marketing promotion, and effectively improve product and brand strength. The market share and penetration of domestic brands are expected to increase. It is suggested to pay attention to the golf apparel leader Biem.L.Fdlkk Garment Co.Ltd(002832) (002832. SZ).
Investment main line 3: Home Textile: consumption upgrading, good for middle and high-end home textile companies. In the short term, the consumption upgrading trend continues, and the average online sales price of home textile products continues to increase, driving the performance improvement of medium and high-end home textile companies in the head; In the medium and long term, the brand strength and product strength of medium and high-end home textile companies continue to increase. At the same time, with the increase of national income, the change of consumption concept and the pursuit of quality life, it is expected that consumers’ demand for medium and high-end home textile products will increase and the industry concentration is expected to increase. It is suggested to pay attention to the leading medium and high-end home textile company Luolai Lifestyle Technology Co.Ltd(002293) (002293. SZ).
Risk tip: the epidemic repeatedly affects offline channel sales, macroeconomic downside risk and raw material fluctuation risk.
