Core view
Market review: throughout the week, the CSI 300 index fell 0.94%, the gem index rose 1.81%, and the textile and garment industry index fell 2.55%, which was weaker than the CSI 300 and the gem index. Among them, the textile manufacturing sector fell 2.44%, and the brand clothing sector fell 2.66%. In terms of individual stocks, Anta sports, Li Ning and Shenzhou International, which we cover, have achieved positive returns.
Overseas highlights: (1) zhenlishi, a Swiss luxury watch brand under LVMH group, announced a price increase from April 1. (2) Continue to expand the production capacity of leather goods. Hermes has built two new leather goods workshops in France. (3) Prada’s sales in fiscal year 2021 exceeded the pre epidemic level and reached € 3.366 billion.
Important information of industry and company: (1) Li Ning: the company released its 2021 annual report. The company achieved an operating revenue of 22.57 billion, a year-on-year increase of 56%, a net profit of 4.01 billion, a year-on-year increase of 136%, a net interest rate of 17.7%, and a year-on-year increase of 6 PCTs. (2) Chow Tai Seng Jewellery Company Limited(002867) : the company released the main operating data from January to February 2022. From January to February 2022, the operating revenue was 2.319 billion yuan, an increase of 203.11% at the same time; The net profit increased by 1.801 billion yuan to the parent company. (3) Shanghai Jahwa United Co.Ltd(600315) : the company announced in its 2021 annual report that the operating revenue in 2021 was 7.65 billion yuan, a year-on-year increase of 8.7%; The net profit attributable to the parent company was 650 million yuan, a year-on-year increase of 50.9%; The non net profit attributable to the parent company was 680 million yuan, a year-on-year increase of 70.8%. (4) 3 / 12 ~ 3 / 18 investment and financing of consumer industry: a. PMPM global formula, a skin care product R & D and manufacturer, has completed tens of millions of yuan of strategic financing; B intelligent cleaning Siasun Robot&Automation Co.Ltd(300024) R & D manufacturer Hutt wisdom completed tens of millions of yuan of round a financing. C. Yunshang IOT, an online platform for clothing life cycle management, completed a round of financing of 50 million yuan.
Suggested sector combination this week: Zhejiang Weixing Industrial Development Co.Ltd(002003) , Huali Industrial Group Company Limited(300979) , Anta sports, Li Ning and Zhejiang Natural Outdoor Goods Inc(605080) . Last week’s combined performance: Zhejiang Weixing Industrial Development Co.Ltd(002003) -6%, Huali Industrial Group Company Limited(300979) 0%, Anta Sports 3%, Li Ning 3% and Zhejiang Natural Outdoor Goods Inc(605080) -2%.
Investment proposal and investment object
On Tuesday, the Bureau of statistics disclosed the social zero data from January to February 2022. In the first two months, China’s total retail sales of social consumer goods increased by 6.7% year-on-year, a significant rebound from December last year. The retail sales of consumer goods other than cars increased by 7.0%. In the first two months, the online retail sales of physical goods increased by 12.3% year-on-year, including clothing goods increased by 3.9%. From January to February, in terms of structure, petroleum products, beverages, daily necessities and other categories were relatively stronger. Among the optional consumer goods we covered, gold, silver and jewelry increased by 19.5% year-on-year in February, showing a bright performance. Cosmetics, clothing, shoes and hats increased by 7.0% and 4.8% year-on-year respectively. Since March, China’s multi-point frequent epidemic and strict prevention and control measures are expected to have a certain impact on consumption. However, after the prevention and control measures in 2020, enterprises have also formed their own sales and channel models to deal with the epidemic to minimize the negative impact. In the short term, export manufacturing for overseas demand is still a sub industry with relatively higher certainty in the sector. Throughout the year, we continue to be optimistic about the high prosperity of sportswear and big beauty (cosmetics and medical beauty). Among them, the sportswear sector recommends Li Ning (02331, buy), Anta sports (02020, buy), Huali Industrial Group Company Limited(300979) ( Huali Industrial Group Company Limited(300979) , buy) and Shenzhou International (02313, buy). It is suggested to pay attention to Tebu International (01368, buy). The big beauty sector is optimistic about Proya Cosmetics Co.Ltd(603605) ( Proya Cosmetics Co.Ltd(603605) , buy) in the medium and long term Yunnan Botanee Bio-Technology Group Co.Ltd(300957) ( Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , overweight), it is suggested to pay attention to Shanghai Jahwa United Co.Ltd(600315) ( Shanghai Jahwa United Co.Ltd(600315) , overweight), Bloomage Biotechnology Corporation Limited(688363) ( Bloomage Biotechnology Corporation Limited(688363) , Unrated) and Imeik Technology Development Co.Ltd(300896) ( Imeik Technology Development Co.Ltd(300896) , buy). The traditional clothing sector recommends Zhejiang Weixing Industrial Development Co.Ltd(002003) ( Zhejiang Weixing Industrial Development Co.Ltd(002003) , buy), Baoxiniao Holding Co.Ltd(002154) ( Baoxiniao Holding Co.Ltd(002154) , buy), Bosideng (03998, buy), Zhejiang Natural Outdoor Goods Inc(605080) ( Zhejiang Natural Outdoor Goods Inc(605080) , buy), Luolai Lifestyle Technology Co.Ltd(002293) ( Luolai Lifestyle Technology Co.Ltd(002293) , overweight), Zhejiang Semir Garment Co.Ltd(002563) ( Zhejiang Semir Garment Co.Ltd(002563) , buy), etc. In addition, it is suggested to pay attention to Biem.L.Fdlkk Garment Co.Ltd(002832) ( Biem.L.Fdlkk Garment Co.Ltd(002832) , not rated) and leading companies of gold and jewelry.
Risk tips
The repeated global epidemic, the pressure of economic slowdown on China’s retail terminals, trade friction, cotton price and RMB exchange rate fluctuations, etc.
