This week, the textile and garment sector lagged behind the market by 2.17pct, with Hunan Huasheng Co.Ltd(600156) , Comefly Outdoor Co.Ltd(603908) , Saturday Co.Ltd(002291) rising ahead. This week (03.14-03.18), SW textile and garment sector fell 3.11%, Shanghai and Shenzhen 300 fell 0.94%, and textile and garment sector lagged behind the market by 2.17pct. Among them, SW textile manufacturing sector fell 2.42%, and SW clothing and home textile fell 2.69%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 16.22 times, which is lower than the average value in recent one year. The top five companies in the textile and garment sector were: Hunan Huasheng Co.Ltd(600156) (+ 10.09%), Comefly Outdoor Co.Ltd(603908) (+ 8.06%), Saturday Co.Ltd(002291) (+ 6.28%), Hubei Mailyard Share Co.Ltd(600107) (+ 4.26%), Leshan Giantstar Farming&Husbandry Corporation Limited(603477) (+ 3.91%).
The household goods sector lagged behind the market by 1.34pct this week, with Nanjing Olo Home Furnishing Co.Ltd(603326) , Vohringer Home Technology Co.Ltd(603226) , Chengxin Lithium Group Co.Ltd(002240) rising ahead. This week (03.14-03.18), the SW household goods sector fell 2.28%, the CSI 300 fell 0.94%, and the household goods sector lagged behind the market by 1.34pct. From the valuation level of the sector, at present, the industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 21.89 times and SW furniture is 20.67, which is lower than the average value in recent one year. The top five companies in the furniture sector were: Nanjing Olo Home Furnishing Co.Ltd(603326) (+ 8.83%), Vohringer Home Technology Co.Ltd(603226) (+ 7.33%), Chengxin Lithium Group Co.Ltd(002240) (+ 2.67%), Xlinmen Furniture Co.Ltd(603008) (+ 2.35%), A-Zenith Home Furnishings Co.Ltd(603389) (+ 2.08%).
Important industry news:
\u3000\u30001. Six department deployment: furniture and building materials to the countryside! The rural market reached trillion yuan. Recently, the general office of the Ministry of industry and information technology, the general office of the Ministry of housing and urban rural development, the general office of the Ministry of agriculture and rural areas, the general office of the Ministry of Commerce, the general office of the State Administration of market supervision and the General Department of the State Rural Revitalization Bureau jointly issued a notice on “six departments on carrying out activities of green building materials to the countryside in 2022”, encouraging qualified areas to give appropriate subsidies or loan interest discounts to the consumption of green building materials; Encourage enterprises, e-commerce and stores to benefit the people and boost green consumption. The event will be held from March 2022 to December 2022. According to the principles of department guidance, market leadership and pilot first, about five pilot areas will be selected to carry out the activities. The pilot areas should guide green building materials production enterprises, e-commerce platforms, stores and shopping malls to actively participate in the activities. It is estimated that the building materials market for rural housing transformation is nearly 100 billion yuan every year. Considering the construction of rural infrastructure and Cecep Solar Energy Co.Ltd(000591) transformation, the rural building materials market may have a market space of nearly one trillion yuan every year.
\u3000\u30002. Clothing “ten billion Legion” added another member, and Tebu’s revenue and net profit increased by double digits last year. According to the 2021 annual report released by Tebu on March 16, the revenue of Tebu exceeded 10 billion yuan for the first time in 2021, realizing an annual revenue of 10.013 billion yuan / + 22.53%; Net profit 908 million yuan / + 77.05%; Gross profit is 4.178 billion yuan / + 30.62%. In terms of the composition of annual revenue, the revenue of shoes and shoes accounts for 59%, the revenue of clothing accounts for 39%, and the revenue of accessories accounts for 2%; The revenue from the mass sports business dominated by the main brand Tebu contributed 88% of the total revenue, the revenue contribution of fashion sports brands such as gasway and paladin accounted for 10%, and the revenue contribution of professional sports brands such as soconnie and Maile accounted for 2%. This year, the holding of the Beijing Winter Olympic Games has ushered in another wave of Olympic dividends for local sports brands, with obvious sales growth. Through professional and high-end innovation, supplemented by upgrading retail channels, enhancing brand value and integrating Chinese cultural elements into products, we will continue to attract young consumers, consolidate the brand “moat” in the running market, and create more sustainable growth through multi brand layout.
\u3000\u30003. Vietnam’s furniture exports soared by 15.5% from January to February. According to the data of Vietnam’s General Administration of customs, the significant growth of total exports shows that Vietnam’s export market of wood and wood products continues to maintain strong signs of recovery: from January to February 2022, Vietnam’s total exports of wood and wood products were about US $2.6 billion / + 15.5%; Among them, the total export volume of wood products reached US $2 billion / + 11.8%. Last year, Vietnam’s timber and wood products were exported to more than 40 countries around the world, with a total annual export volume of US $14.81 billion, and the export share is gradually expanding. In order to support the sustainable development of the industry and further expand exports, Vietnamese Vice Premier Li Wencheng has approved the sustainable development project of wood processing industry from 2021 to 2030, setting the goal that “Vietnam’s total exports of wood and wood products are expected to reach US $18.5 billion in 2025 and US $20.4 billion in 2030”. To this end, the Vietnamese government plans to establish five high-tech forestry zones in China to attract investment from wood processors and auxiliary material manufacturers, so as to develop infrastructure and expand production scale, speed up the construction of furniture exhibition center, and encourage the establishment of wood products research and design centers that meet the needs of consumers.
Important announcement of the company: [Li Ning] Clarification Announcement; [special step] 2021 annual performance announcement; [ Zhejiang Jasan Holding Group Co.Ltd(603558) ] announcement on the completion of industrial and commercial change registration; [ Baoxiniao Holding Co.Ltd(002154) ] announcement on the joint partnership of wholly-owned subsidiaries and professional investment institutions in Pingyang Junquan chongjun equity investment partnership (limited partnership); [Li Ning] annual performance announcement for the year ended December 31, 2021; [Lutai a] announcement on the price adjustment of convertible bonds to shares.
Investment suggestion: for the clothing and home textile sector, it is suggested to pay attention to Anta sports and Li Ning, the leaders of sportswear with higher prosperity and better competition pattern, as well as 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. The epidemic situation in Southeast Asia may affect the production capacity release of the textile manufacturing industry; 5. The exchange rate fluctuates greatly.
