Key investment points
This week, the textile and garment sector lagged behind the market by 0.04pct, Comefly Outdoor Co.Ltd(603908) , ST Tianshou, Zhejiang Jasan Holding Group Co.Ltd(603558) rose ahead. This week (04.04-04.08), SW textile and garment sector fell 1.11%, Shanghai and Shenzhen 300 fell 1.06%, and textile and garment sector lagged behind the market by 0.04pct. Among them, SW textile manufacturing sector fell 1.55%, and SW clothing and home textile fell 1.62%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 16.14 times, which is lower than the average value in recent one year. The top five companies in the textile and garment sector were: Comefly Outdoor Co.Ltd(603908) (+ 20.58%), ST Tianshou (+ 10.72%), Zhejiang Jasan Holding Group Co.Ltd(603558) (+ 5.83%), Beijing Sanfo Outdoor Products Co.Ltd(002780) (+ 3.34%), Hubei Mailyard Share Co.Ltd(600107) (+ 3.27%).
Household goods sector outperformed the market by 0.96pct this week, with A-Zenith Home Furnishings Co.Ltd(603389) , Suofeiya Home Collection Co.Ltd(002572) , Oppein Home Group Inc(603833) rising ahead.
This week (04.04-04.08), SW household goods sector fell 0.1%, CSI 300 fell 1.06%, and household goods sector outperformed the market by 0.96pct. From the valuation level of the sector, at present, the industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 21.90 times and SW furniture is 20.94 times, which is lower than the average value in recent one year. The top five companies in the furniture sector were: A-Zenith Home Furnishings Co.Ltd(603389) (+ 17.97%), Suofeiya Home Collection Co.Ltd(002572) (+ 5.69%), Oppein Home Group Inc(603833) (+ 3.04%), Guangxi Fenglin Wood Industry Group Co.Ltd(601996) (+ 2.17%), Yotrio Group Co.Ltd(002489) (+ 1.96%).
Important industry news:
\u3000\u30001. Anta 3707 employees received incentive shares. Recently, Anta Sports announced that on April 4, 2022, the company granted a total of 102945 million incentive shares to 3707 selected employees in accordance with the share incentive plan. In order to grant the above-mentioned incentive shares in accordance with the share incentive plan, the board of directors also resolved to allot and issue 10294500 new shares to the trustee in accordance with the general authorization in 2021. The percentage of bonus shares in the total number of shares issued on the date of Anta's announcement is about 0.38%. According to this calculation, the total market value is about 959million Hong Kong dollars, and the average person is about 258700 Hong Kong dollars. According to the incentive plan, each new share is HK $0.1. The board of directors shall pay the trustee a subscription amount of HK $102945 with the internal resources of the company for the 10294500 new shares allotted and issued under the general authorization in 2021.
\u3000\u30002. Ministry of industry and information technology: China's 10 billion beauty brand will be born in 2025. On April 6, the Ministry of industry and information technology issued the action plan for digital "three products" of consumer goods industry (20222025) (Draft for comments), which intends to promote the implementation of the "three products" strategy of increasing varieties, improving quality and creating brands. The plan mentioned that by 2025, 200 intelligent manufacturing demonstration factories should be cultivated in the fields of food, household appliances, cosmetics, clothing, home textiles, electronic products and other consumer goods, and 20 well-known brands with a scale of 10 billion should be built. This means that, driven by the above plan, the cosmetics industry is likely to produce 10 billion brands in the next four years. For the above tasks, relevant departments will also give preferential support, such as using existing capital channels to support enterprises to implement the digital "three products" action, and encouraging local governments to formulate corresponding supporting policies based on reality. Give full play to the role of the national industrial and financial cooperation platform and guide financial institutions to provide accurate and effective support for consumer goods enterprises. Encourage various platforms and institutions to implement certain service fee reduction and exemption for small and medium-sized enterprises and reduce the investment in enterprise digital transformation.
\u3000\u30003. Some wood and paper products originating in New Zealand are subject to treaty tax rates. According to the Ministry of Finance on the 3rd, the Tariff Commission of the State Council recently issued an announcement on the implementation of the agreement tax rate on some wood and paper products originating in New Zealand. As agreed by China and New Zealand, the protocol between the government of the people's Republic of China and the government of New Zealand on upgrading will enter into force on April 7, 2022. The agreement tax rate will be implemented for some timber and paper products originating in New Zealand, and the subsequent annual tax rate will be implemented from January 1 of that year. 2022 marks the 50th anniversary of the establishment of diplomatic relations between China and New Zealand. April 7 is not only the 14th anniversary of the signing of the China New Zealand Free Trade Agreement, but also the entry into force and implementation date of the upgrading protocol. The implementation of the agreed tax rate will further promote trade and investment exchanges between the two countries, enhance the interests of enterprises and people's well-being of the two countries, and promote the development of bilateral economic and trade relations to a higher level.
Important announcement of the company: [Anta Sports] grants incentive shares in accordance with the share incentive plan and issues new shares in accordance with the general authorization in 2021; [Tebu international] business operation in China in the first quarter of 2022; [ Huali Industrial Group Company Limited(300979) ] annual report for 2021.
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. Large fluctuations in exchange rates
