Core view
Market review: throughout the week, the CSI 300 index fell 1.06%, the gem index fell 3.64%, and the textile and garment industry index fell 1.51%, which is between the CSI 300 and the gem index. Among them, the textile manufacturing sector fell 1.51%, and the brand clothing sector fell 1.52%. In terms of individual stocks, we have achieved positive returns on Zhejiang Weixing Industrial Development Co.Ltd(002003) , Dazzle Fashion Co.Ltd(603587) , etc.
Overseas highlights: (1) Hong Kong’s sales fell by more than 10% in February. (2) Farfetch, a British luxury e-commerce, invested US $200 million in Neiman Marcus, an American luxury department store group. (3) Hypebeast, a fashion platform in Hong Kong, will land on NASDAQ through “spac”.
Important information of industry and company: (1) Huali Industrial Group Company Limited(300979) : the company announces the performance in 2021. In 2021, the company’s operating revenue was 17.47 billion yuan, a year-on-year increase of 25.4%; The net profit attributable to the parent company was 2.77 billion yuan, a year-on-year increase of 47.3%; The non net profit attributable to the parent company was 2.76 billion yuan, a year-on-year increase of 47.2%. (2) Tebu International: the company announced the business operation in China in Q1 2022. In Q1 2022, retail sales (including Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels) increased by 30% ~ 35% year-on-year, the retail discount level was about 75%, and the retail inventory turnover was about 4 months. (3) Biem.L.Fdlkk Garment Co.Ltd(002832) : as of April 6, 2022, the shares held by Xie Bingzheng, Feng Lingling and Xie Ting, who acted in concert, had been passively diluted and actively reduced by 1.09%. (4) 3 / 26 ~ 4 / 1 investment and financing of consumer industry: A. Angel round financing of millions of RMB based on the equivalence principle of interesting fitness brand; B home lifestyle brand chapterhome has completed Angel round and pre-A round of financing totaling nearly 100 million yuan. C. Boutique coffee brand% Arabica has completed a new round of 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) 3%, Huali Industrial Group Company Limited(300979) 0%, Anta Sports – 8%, Li Ning – 9% and Zhejiang Natural Outdoor Goods Inc(605080) -7%.
Investment proposal and investment object
Since March, the multi-point frequent outbreak of the epidemic across the country has had a significant negative impact on the terminal consumption of brand clothing. On the one hand, strict epidemic prevention measures have significantly slowed down offline stores or passenger flow in many key areas. On the other hand, e-commerce, which plays an important role in the epidemic in 2020, is also subject to the current timeliness of logistics, and there is a certain discount on sales transactions and shopping experience. The recent weak trend of optional consumption also reflects this cautious and pessimistic expectation. Under the impact of the epidemic, the performance of most brand clothing companies is expected to be under pressure in the first quarter, and the profit growth rate is expected to be significantly lower than the income side under fixed expenses such as personnel cost, rent, depreciation and amortization. In the second quarter, if the epidemic in China can be effectively controlled, the terminal consumption is expected to usher in a significant rebound from May to June, but the final progress still depends on the development of the epidemic. In the short term, the textile and clothing fashion consumption industry presents more structural opportunities, and export manufacturing is still a sub industry with relatively higher certainty. 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, inflation and RMB exchange rate fluctuations.
