The textile and garment sector outperformed the market by 3.18pct this week, with Shanghai Dragon Corporation(600630) , Shanghai Sanmao Enterprise (Group) Co.Ltd(600689) , Shandong Ruyi Woolen Garment Group Co.Ltd(002193) rising ahead. This week (03.21-03.25), SW textile and garment sector rose 1.04%, CSI 300 fell 2.14%, and textile and garment sector outperformed the market by 3.18pct. Among them, SW textile manufacturing sector rose 2.25%, and SW clothing and home textile rose 0.56%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 16.36 times, which is lower than the average value in recent one year. The top five companies in the textile and garment sector were: Shanghai Dragon Corporation(600630) (+ 21.94%), Shanghai Sanmao Enterprise (Group) Co.Ltd(600689) (+ 20.59%), Shandong Ruyi Woolen Garment Group Co.Ltd(002193) (+ 19.53%), Hunan Huasheng Co.Ltd(600156) (+ 15.57%), Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) (+ 14.08%).
Household goods sector outperformed the market by 0.02pct this week, with Guangdong Topstrong Living Innovation And Integration Co.Ltd(300749) , Chengxin Lithium Group Co.Ltd(002240) , Zoy Home Furnishing Co.Ltd(603709) rising ahead. This week (03.21-03.25), SW household goods sector fell 2.12%, CSI 300 fell 2.14%, and household goods sector outperformed the market by 0.02pct. From the valuation level of the sector, at present, the industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 21.33 times and SW furniture is 20.06, which is lower than the average value in recent one year. The top 5 companies in the furniture sector this week are: Guangdong Topstrong Living Innovation And Integration Co.Ltd(300749) (+ 12.01%), Chengxin Lithium Group Co.Ltd(002240) (+ 5.79%), Zoy Home Furnishing Co.Ltd(603709) (+ 4.94%), Elegant Home-Tech Co.Ltd(603221) (+ 4.55%), Yotrio Group Co.Ltd(002489) (+ 4.34%).
Important industry news:
\u3000\u30001. Anta's revenue in 2021 was 49.3 billion, and its local market surpassed ADI and was close to Nike. On March 22, Anta sporting goods Co., Ltd. released the financial report for 2021. The annual revenue of the group increased by 38.9% year-on-year to 49.33 billion yuan; The revenue and net profit continued to maintain double-digit high growth. The revenue maintained growth for the eighth consecutive year, and continued to maintain a high growth rate on the basis of a large base, showing the steady development trend and strong development momentum of leading enterprises. According to Euromonitor data, the overall market scale of China's sports shoes and clothing reached 371.8 billion yuan / + 19.1% in 2021. Since 2004, China's sports brand market has been firmly occupied by the two "foreign brands" of Nike and Adidas. Domestic sports brands have been difficult to break the "double super" monopoly established by Nike and adidas for 17 consecutive years. In 2021, the revenue of China's top five sports brand enterprises was 51.02 billion yuan for Nike China, 49.33 billion yuan for Anta sports, 34.34 billion yuan for Adidas, 22.57 billion yuan for Li Ning group and 10.01 billion yuan for Tebu international; Among the top five brands, Anta Group holds two seats, Anta Anta (9.3%) and FILA (7%). In terms of children's sports shoes and clothing brands, Anta children's antakids leads Nike children's nikekids (1.8%) and Adidas children's Adidas (1.6%) with a share of 2%. At present, China's sports goods market has entered a mature and stable period from a period of rapid expansion. More rational consumers are willing to pay a premium for high-quality products rather than simply choose Chinese or international brands. In this regard, Anta released a new ten-year strategic plan at the end of 2021, upgrading "single focus, multi brand and all channel" to "single focus, multi brand and globalization" to further participate in the global sports goods competition.
\u3000\u30002. The United States re exempted 352 tariffs on Chinese imports. On March 23 local time, the office of the U.S. trade representative announced a new exemption from tariffs on 352 goods imported from China. The new provisions will apply to goods imported from China between October 12, 2021 and December 31, 2022. Among them, a number of textile products were listed. On March 24, Shu jueteng, spokesman of the Ministry of Commerce, said at the Ministry of Commerce's online press conference that the tariff exemption would help the normal trade of related products. In addition, the tariff exemption also includes 0505100050 feathers, 0505100055 down and 9404901000 cotton pillows filled with duck down or goose down.
\u3000\u30003. Kobe brand and Nike will continue to cooperate. On March 25, Vanessa Bryant announced that the Kobe brand will continue to cooperate with Nike, and fans will continue to use Kobe and giginik products in the next few years. Nike will donate 100% of Gianna's net income of shoes to Mamba and mambacita sports foundation every year. Previously, the last endorsement contract signed between Kobe and Nike began in 2003 and ended in April 2021. When the contract expired, Vanessa did not choose to renew the contract with Nike immediately.
Important announcement of the company: [Li Ning] Clarification Announcement; [Anta Sports] annual performance announcement in 2021; [ Huafu Fashion Co.Ltd(002042) ] repurchase report; [361 °] announcement of annual results in 2021; [ Zhejiang Jasan Holding Group Co.Ltd(603558) ] progress announcement on the guarantee provided by the parent company for subsidiaries; [winner fashion] annual performance announcement for the year ended December 31, 2021; [ Baoxiniao Holding Co.Ltd(002154) ] announcement on the company's access to government subsidies.
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.
