Core view
Market review: throughout the week, the CSI 300 index rose by 2.43%, the gem index rose by 1.1%, and the textile and garment industry index fell by 0.53%, which was weaker than the CSI 300 and the gem index. Among them, the textile manufacturing sector fell by 1.73%, and the brand clothing sector rose by 0.57%. In terms of individual stocks, we have achieved positive returns on Dazzle Fashion Co.Ltd(603587) , Luolai Lifestyle Technology Co.Ltd(002293) and Shanghai Shuixing Home Textile Co.Ltd(603365) .
Overseas highlights: (1) lululemon lululemon lemon exceeded expectations in the fourth quarter and maintained double-digit growth this year. (2) Louis Vuitton’s rotating bag buckle is involved in a copyright dispute. (3) INDITEX, Zara’s parent company, will raise prices “selectively” to ease cost pressures.
Important information of industry and company: (1) Zhejiang Semir Garment Co.Ltd(002563) : the company achieved an operating revenue of 15.42 billion yuan in 2021, with a year-on-year increase of 1.4%; The net profit attributable to the parent company was 1.49 billion yuan, a year-on-year increase of 84.5%; The non net profit attributable to the parent company was 1.35 billion yuan, a year-on-year increase of 78.9%. (2) Shenzhou International: the company achieved sales of 23.85 billion yuan in 2021, a year-on-year increase of 3.5%; The net profit after tax was 3.37 billion yuan, a year-on-year decrease of 33.7%. (3) Shanghai Haohai Biological Technology Co.Ltd(688366) : the company achieved an operating revenue of 1.77 billion yuan in 2021, with a year-on-year increase of 32.6%; The net profit attributable to the parent company was 350 million yuan, a year-on-year increase of 53.1%. (4) Winner Medical Co.Ltd(300888) : Sequoia Xinyuan, the major shareholder of the company, holds 28.184 million shares of the company (accounting for 6.7% of the total share capital of the company after excluding repurchased shares), and plans to reduce no more than 14.092 million shares (accounting for 3.4% of the total share capital of the company after excluding repurchased shares).
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 portfolio performance: Zhejiang Weixing Industrial Development Co.Ltd(002003) -5%, Huali Industrial Group Company Limited(300979) 0%, Anta Sports 0%, Li Ning 2% and Zhejiang Natural Outdoor Goods Inc(605080) -3%.
Investment proposal and investment object
This week, the textile and clothing sector began to intensively disclose the annual report of 2021. Affected by the epidemic and other factors, under the background of generally poor performance in the second half of the year, many brand clothing leaders still choose high cash dividends to give back to shareholders. Under the weak market environment, the high dividend rate has increased the investment attraction of the sector to a certain extent. According to our grassroots research and the tracking of terminal retail, the terminal retail of most brands maintained an upward trend from January to February in the first quarter, but in March, affected by the national multi-point frequent epidemic and strict prevention and control measures on logistics and offline stores, the retail performance in that month was weak, which generally dragged down the flow performance in the first quarter (still affected the estimation in April). The recent weak trend of brand clothing sector also reflects this cautious expectation. In the short term, the industry presents more structural opportunities, and export manufacturing is still a sub industry with relatively higher certainty in the sector. From the perspective of the whole year, we continue to be optimistic about the two deterministic tracks of high prosperity sportswear and 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 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.
