Zhou’s views and investment suggestions
High base of running sports and strong consumption power of running shoes: the base of Chinese running population exceeds 300 million, of which the participation of young groups has increased significantly. Among the 21 years of happy running circle users, Post-00 accounted for 16.1%, with an increase of 62.3%. Running shoes are the main consumption of running. The consumption of running equipment accounts for 78.5%, and 83% of runners buy more than two pairs of running shoes every year. Comfort and cushioning, cost performance and brand power are the decision factors for buying running shoes. In recent years, domestic running shoes have continuously launched products with high performance and high cost performance, and their recognition has been continuously improved.
Driven by scientific and technological research and development, domestic running shoes are rising rapidly. The research and development of Chinese running shoe midsole technology started later than overseas. Since 2018, with the launch of state pole technology by peak, Li Ning’s debut technology and special release of power nest Pb technology, Chinese midsole technology has entered an explosive period. From the perspective of brands: 1) Li Ning is the leader of domestic running shoes. He has launched a number of core midsole technologies such as 䨻 technology and 弜 technology, and launched four series of stability, cushioning, racing and lightweight according to the diverse needs of runners, with clear segmentation and functionality. 2) Taking running shoes as the core product line and taking power nest technology as the core, Tebu has successively launched materials such as power nest Pb, power nest X and power nest x2. Its professional racing shoes 160xpro and 100 have been recognized by professional marathon runners. 3) Anta has a late layout in the professional running shoe track, but it has developed rapidly. At the end of the 20th year, Anta entered the professional running shoe market with a record 1.0, and launched c202gt racing carbon sector running shoes in April last year, realizing a breakthrough from mass running shoes to high-end professional running shoes.
Investment suggestion: at the downstream end, it is suggested to pay attention to Li Ning with leading R & D strength and superior brand potential, as well as Tebu international with outstanding advantages in running shoes; It is suggested to pay attention to Zhejiang Jasan Holding Group Co.Ltd(603558) , Zhe Jiang Taihua New Material Co.Ltd(603055) , Huafu Fashion Co.Ltd(002042) , etc. with prominent supply chain stability, orderly promotion of capacity expansion and higher than expected sales performance of downstream customers. Data and announcement tracking
Market review: last week (March 14, 2022 ~ March 18, 2022), the Shanghai Composite Index, Shenzhen Component Index and Shanghai Shenzhen 300 fell 1.77%, 0.95% and 0.94% respectively, and the textile and garment sector fell 3.11%, including the textile sector fell 2.42% and the garment sector fell 2.69%.
Raw material price: 328 grade cotton spot 22683 yuan / ton (0.01%, weekly rise and fall); American cotton Cotlook A136 45 cents / pound (- 0.84%); The price difference between domestic and foreign cotton is 1027 yuan / ton (- 13.25%).
Announcement of key companies: 1) Nanji E-Commerce Co.Ltd(002127) : Mr. Zhang Yuxiang, the actual controller of the company, supplementary pledged some shares of the company, with the number of Pledged Shares of 1 million shares, accounting for 0.16% and 0.04% of the total share capital of the company. 2) Luthai Textile Co.Ltd(000726) : the company issued a restricted stock incentive plan, granting 5.838 million shares, 343 incentive objects and a grant price of 3.56 yuan / share. 3) Zhejiang Hangmin Co.Ltd(600987) : as of the date of this announcement, Hangmin group has increased its shareholding of 15 million shares, accounting for 1.43% of the total issued shares of the company. The implementation of this shareholding increase plan of Hangmin group has been completed. 4) Hunan Mendale Hometextile Co.Ltd(002397) : Ms. Wu Jing, the shareholder of the company, plans to reduce the number of shares of the company by means of centralized bidding transaction, which shall not exceed 15.11 million shares and 2% of the total share capital of the company on the date of disclosure.
Risk tips
Repeated epidemic risk, exchange rate fluctuation risk, rising labor costs in Vietnam and lower than expected price increase risk.
