Core view
Market review: throughout the week, the CSI 300 index fell by 2.14%, the gem index fell by 2.8%, and the textile and garment industry index rose by 1.1%, which was stronger than the CSI 300 and the gem index. Among them, the textile manufacturing sector rose by 2.11%, and the brand clothing sector rose by 0.18%. In terms of individual stocks, Shenzhou International, Li Ning and Proya Cosmetics Co.Ltd(603605) etc. covered by us have achieved positive returns.
Overseas highlights: (1) hugo boss’s strong return. (2) Nike beat expectations in the third quarter. (3) Richemont group sold its entire 20% stake in Swiss watchmaking brand Greubel Forsey.
Important information of industry and company: (1) Anta Sports: in 2021, the company’s revenue was 49.33 billion, a year-on-year increase of 38.9%; The gross profit was 30.4 billion, a year-on-year increase of 47.2%; The group’s overall gross profit margin was 61.6%, an increase of 3.4% over 2020. The final dividend is 68 points. (2) Yunnan Botanee Bio-Technology Group Co.Ltd(300957) : in 2021, the company’s revenue was 4.02 billion, with a year-on-year increase of 52.6%; The net profit attributable to the parent company was 860 million, a year-on-year increase of 58.8%; Net profit deducted from non parent company was 810 million, with a year-on-year increase of 58.6%. (3) Baoxiniao Holding Co.Ltd(002154) : the company and its wholly-owned subsidiaries, holding subsidiaries and their wholly-owned subsidiaries received a total of 37.11 million yuan of government subsidies from March 30, 2021 to March 23, 2022, accounting for 10.1% of the audited net profit attributable to the parent company in the latest year. (4) Investment and financing of consumer industry from March 19 to March 25: a. meltseason, a high-end lifestyle brand, completed an angel round of financing of more than 10 million yuan; b. The national beauty brand mistine has completed financing of more than 200 million yuan. C. Funpinpin, a SaaS service platform established by independent stations in China, completed round A2 financing.
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) -4%, Huali Industrial Group Company Limited(300979) 4%, Anta Sports – 3%, Li Ning 8% and Zhejiang Natural Outdoor Goods Inc(605080) 3%.
Investment proposal and investment object
This week, the overall market continued to adjust downward. Driven by the manufacturing sector, textile and garment outperformed the CSI 300 and gem indexes. On Wednesday, the office of the U.S. trade representative announced that 352 imported goods from China will be exempted from tariffs until the end of 2022, including clothing, clothing accessories and other textile and garment products, which will be beneficial to the textile manufacturing sector dominated by overseas demand. In the short term, export manufacturing is still a relatively more deterministic sub industry in the sector. According to our grassroots research, since March, China’s multi-point frequent epidemic and strict prevention and control measures have had a certain impact on optional consumption. The market trend is also reflecting this cautious expectation, and the sector presents more structural opportunities. 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 Imeik Technology Development Co.Ltd(300896) ( Imeik Technology Development Co.Ltd(300896) , buy) and 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). 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.
