This week, the textile and garment sector outperformed the market by 2.42pct, and St global *, Beijing Sanfo Outdoor Products Co.Ltd(002780) , Anhui Korrun Co.Ltd(300577) rose ahead. This week (12.27-12.31), SW textile and garment sector rose 2.81%, Shanghai and Shenzhen 300 rose 0.39%, and textile and garment sector outperformed the market by 2.42pct. Among them, SW textile manufacturing sector rose 3.39%, and SW clothing and home textile rose 2.24%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 18.84 times, which is lower than the average value in recent one year. The top 5 companies in the textile and garment sector this week are: St global * (+ 14.65%), Beijing Sanfo Outdoor Products Co.Ltd(002780) (+ 14.25%), Anhui Korrun Co.Ltd(300577) (+ 10.76%), Huasi Holding Company Limited(002494) (+ 9.7%) and Wuhu Fuchun Dye And Weave Co.Ltd(605189) (+ 9.67%); The top 5 companies in the textile and garment sector this week were: * ST Lasha (- 9.36%), St start (- 6.36%), St start (- 6.25%), St 603511} (- 5.8%) and Guangdong Wanlima Industry Co.Ltd(300591) (- 4.33%).
The household goods sector outperformed the market by 4.17pct this week, with Qumei Home Furnishings Group Co.Ltd(603818) , Jiangshan Oupai Door Industry Co.Ltd(603208) , Chengxin Lithium Group Co.Ltd(002240) rising ahead. This week (12.27-12.31), SW household goods sector rose 4.56%, Shanghai and Shenzhen 300 rose 0.39%, and household goods sector outperformed the market by 4.17pct. From the valuation level of the sector, the industry PE calculated by the overall method of SW household products (TTM, excluding negative values) is 26.72 times and that of SW furniture is 24.84 times, which is lower than the average value in recent one year. The top 5 companies in the furniture sector this week are: Qumei Home Furnishings Group Co.Ltd(603818) (+ 13.34%), Jiangshan Oupai Door Industry Co.Ltd(603208) (+ 12.32%), Chengxin Lithium Group Co.Ltd(002240) (+ 11.06%), Suofeiya Home Collection Co.Ltd(002572) (+ 10.39%) and Ue Furniture Co.Ltd(603600) (+ 9.29%); The top 5 Furniture Companies in this week’s decline are: Guangxi Fenglin Wood Industry Group Co.Ltd(601996) (- 0.3%), Markor International Home Furnishings Co.Ltd(600337) (- 0.28%), Fujian Yongan Forestry (Group) Joint-Stock Co.Ltd(000663) (0.22%), Zoy Home Furnishing Co.Ltd(603709) (0.6%) and Guangzhou Shangpin Home Collection Co.Ltd(300616) (0.82%).
Important industry news:
1. China’s garment export hit a new high in the same period since 2015. According to the statistics of China Customs, from January to November 2021, the export of Chinese clothing (including clothing accessories, the same below) was US $159.27 billion, a year-on-year increase of 25.4%, an increase of 15.9% over the same period in 2019, a new high since 2015. Among them, the contribution rate of knitted clothing to export growth is high, and the export of woven clothing rebounds rapidly; Exports to major markets maintained high growth, and exports to the United States slowed down in November; By province, Guangdong’s export ranks first, while Shandong and Fujian grow rapidly. Abroad, the retail sales of American clothing market reached a new high, and the recovery of European Union and Japan market was slow; Japan’s garment industry is now “homecoming tide”, and some production lines plan to move back to the mainland; Cambodia’s garment production has gradually returned to the pre epidemic level. Now the new year is approaching and the sea freight is rising again. Looking forward to the situation next year, 1) there are still sufficient overseas orders in the first quarter and the first half of the year; 2) The impact of Omicron virus is still difficult to judge, and it will take time for overseas production capacity to recover and grab Chinese orders; 3) The shipping bottleneck is still difficult to be fully solved in the first half of the year at least, and the buyer’s practice of placing orders and preparing goods in advance will continue; 4) There is limited room for China to increase its production capacity. Factors such as rising costs, labor shortage, energy supply and domestic demand growth may have a cross impact on China’s garment exports.
2. Ministry of Commerce: RCEP comes into effect on New Year’s day. On January 1, 2022, RCEP will officially enter into force for Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia. South Korea will also join the implementation on February 1. On the effective date, the proportion of immediate zero tariff between China and ASEAN, Australia and New Zealand will exceed 65%, and the proportion of immediate zero tariff with South Korea will reach 39% and 50%. China and Japan are newly established free trade relations, and the proportion of mutual immediate zero tariff will reach 25% and 57% respectively. Finally, 86% of Japan’s products exported to China will achieve zero tariff, and 88% of China’s products exported to Japan will enjoy zero tariff treatment. Gao Feng, spokesman of the Ministry of Commerce, said that after the tax reduction is completed, China will gradually exempt tariffs on coconut milk, pineapple products and paper products imported from ASEAN, induction cooker, electric oven and most mechanical equipment, instruments and meters and auto parts imported from Japan. At the same time, China’s mechanical and electrical products, instruments and meters, textiles and clothing, some aquatic products and vegetables exported to Japan will also gradually enjoy zero tariff treatment. In terms of trade in services, RCEP member states generally promise to open more than 100 service trade sectors, including finance, telecommunications, transportation, tourism, R & D, etc. New formats and models such as cross-border e-commerce, Internet finance, online office, online education, online consultation and online trade fair will usher in greater development opportunities. 3. List of consumption big data on New Year’s day. 1) Clothing and jewelry: “tiger element”, “New Year red” and “benmingnian” sell well. With the new year’s Day approaching in 2022, consumers’ enthusiasm for red series, tiger elements, benmingnian themed clothing and jewelry continues to rise. Jingdong data show that since December, the turnover of jewelry containing “cute tiger” elements has increased by 85 times year-on-year, and the turnover of clothing and underwear has increased by 14 times year-on-year. Near New Year’s day, “cute tiger” element commodities, red clothes and “benmingnian” commodities are popular again. The search volume of jewelry for men and women in benmingnian in the week before New Year’s Day exceeded 200% year-on-year. 2) Holiday travel: after 95 and after 00 account for more than half, and the surrounding areas of the new first tier cities are attractive. Ctrip’s travel data report on New Year’s Day holiday in 2022 shows that under the normalization of epidemic prevention and control in China, short distance peripheral travel is still the mainstream choice for users to travel, with nearly 60% of travel orders in the province, compared with nearly 50% during New Year’s day in 2020. On the first day of the new year’s Day holiday, the booking volume of peripheral tour tickets has exceeded 264% of the first day of the holiday in 2020. While more post-95 and Post-00 young users travel, playing methods such as “tourism + social networking” and “tourism + performance” have also won more and more favor. 3) Shanghai: New Year’s Day offline consumption was 27.08 billion, and the scale of business district passenger flow returned to 90% before the epidemic. According to the monitoring of the big data laboratory of the consumer market (Shanghai), during the three days of the new year’s Day holiday (December 31 to January 2), the city’s offline consumption payment amount was 27.08 billion yuan, an increase of 12.8% year-on-year in 2021. The total offline passenger flow in 36 business districts in the city reached 20.5 million person times, and the passenger flow scale has recovered to about 90% before the epidemic. Nanjing West Road, Nanjing East Road and Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) are the top three business districts in terms of consumption amount. 4) Film entertainment: the total box office of new films on New Year’s Day exceeded 1 billion. According to the data of cat’s eye professional edition, at 13:29 on January 2, there were 6 new films on New Year’s day in 2022, with a total box office performance (including pre-sale) of more than 1 billion.
Important announcement of the company: [ Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) ] suggestive announcement on the listing and circulation of restricted shares; [wingaid fashion] announcement made in accordance with Article 13.18 of the listing rules; [winner fashion] voluntary announcement; [ Ningbo Peacebird Fashion Co.Ltd(603877) ] announcement on the progress of shareholders’ block trading reduction plan and share reduction; [ Jinhong Fashion Group Co.Ltd(603518) ] announcement of the completion of the centralized bidding reduction plan and the reduction results of shareholders holding more than 5% of the original shares; [ Jinhong Fashion Group Co.Ltd(603518) ] announcement that the application for non-public offering of shares has been approved by the CSRC; [ Lancy Co.Ltd(002612) ] announcement on the expiration and implementation of the shareholder reduction plan; [ Lancy Co.Ltd(002612) ] announcement on the resignation of securities affairs representative; [Anta Sports] declare a special interim dividend; [Li Ning] continuing connected transactions related to the new framework agreement; [ Lancy Co.Ltd(002612) ] announcement on the de pledge of the controlling shareholder’s equity of the company; [ Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) ] announcement on the progress of reducing shares held by senior managers of the company.
Investment suggestion: for the clothing and home textile sector, it is suggested to pay attention to Anta sports, Li Ning, the sports clothing leaders with higher prosperity and better competition pattern, and the stocks with valuation and cost performance Hla Group Corp.Ltd(600398) , as well as the leaders of sub track 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. Epidemic situation in Southeast Asia or affecting the capacity release of textile manufacturing industry; 5. Large fluctuations in exchange rates.
