Core view
Market review: throughout the week, the CSI 300 index fell 2.39%, the gem index fell 6.8%, and the textile and garment industry index rose 1.68%, which was stronger than the CSI 300 and the gem index. Among them, the textile manufacturing sector rose 2.68%, and the brand clothing sector rose 0.84%. In terms of individual stocks, Zhejiang Weixing Industrial Development Co.Ltd(002003) , Luolai Lifestyle Technology Co.Ltd(002293) and Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) we covered achieved positive returns.
Overseas highlights: (1) ABG, an American brand management company, announced the suspension of its IPO plan. (2) Beckham sold 55% of his brand management company to ABG for ￡ 200 million. (3) Two new hair dyeing technology products of L'Oreal Group won the innovation award of ces2022.
Important information of industry and company: (1) Shenzhou International: as of 3 p.m. on January 2, it has been confirmed that delta mutant ay is involved in Beilun District, Ningbo For the 10 positive cases of 57 evolution branch, the company is actively cooperating with the sealing and isolation measures implemented by the local government, and it is expected that some production bases in Beilun District of Ningbo will be affected by short-term shutdown. (2) Li Ning: the company announced that on January 4, 2022, Li Ning (Hubei), an indirect wholly-owned subsidiary of the company, subscribed for Bank Of China Limited(601988) structured deposits of RMB 1.2 billion; On January 5, 2022, Li Ning (China) and Li Ning (Shenzhen) (both indirect wholly-owned subsidiaries of the company) subscribed for Ping An structured deposits with a total amount of RMB 600 million. (3) Bloomage Biotechnology Corporation Limited(688363) : Mr. Li Huiliang, deputy general manager, chief technology officer and core technician of the company, resigned from the position of deputy general manager and chief technology officer of the company for personal reasons. After his resignation, he will no longer hold any position in the company and its subsidiaries.
Suggested plate combination this week: Shenzhou International, Huali Industrial Group Company Limited(300979) , Zhejiang Weixing Industrial Development Co.Ltd(002003) , Luolai Lifestyle Technology Co.Ltd(002293) and Zhejiang Natural Outdoor Goods Inc(605080) . Last week's portfolio performance: Li Ning - 11%, Anta Sports - 8%, Huali Industrial Group Company Limited(300979) - 4%, Zhejiang Weixing Industrial Development Co.Ltd(002003) 11% and Bosideng - 14%.
Investment proposal and investment object
In the four trading days after the new year's Day holiday, the textile and garment sector outperformed the large and small indexes under the condition that the leading stock prices of popular tracks were significantly adjusted, which dragged down the decline of the index. Among them, textile manufacturing continued a relatively stronger trend. The stock prices of leading industries represented by Zhejiang Weixing Industrial Development Co.Ltd(002003) continued to reach new highs, and the competitive advantage was more and more recognized by the secondary market, The valuation premium continues to rise. In addition, some brand apparel companies with high roe, high score red and relatively stable growth also showed good performance in the beginning of the year. Under the circumstance that the market is generally cautious about the expectation of China's consumption data in the first quarter, export manufacturing is one of the few sectors with high prosperity certainty, and it is still the focus of the textile and garment industry in the short term. For the brand clothing sector, we expect the whole year to show a trend of low before high. On the one hand, the pessimistic expectation has been fully reflected in the stock price, and the valuation of most brand leaders has fallen back to the historical bottom area. On the other hand, under the policy support, the bottom of the future economy will also drive the emergence of industrial structural opportunities. For the whole year, our first choice is still high prosperity sportswear and big beauty (cosmetics and medical beauty). Among them, sportswear recommends Li Ning (02331, buy), Anta sports (02020, buy), Huali Industrial Group Company Limited(300979) (300979, buy) and Shenzhou International (02313, buy). It is recommended to pay attention to Tebu International (01368, buy), Large beauty sector is optimistic about Proya Cosmetics Co.Ltd(603605) (603605, buy), Yunnan Botanee Bio-Technology Group Co.Ltd(300957) (300957, overweight), it is recommended to pay attention to Shanghai Jahwa United Co.Ltd(600315) (600315, overweight), Bloomage Biotechnology Corporation Limited(688363) (688363, Unrated) and Imeik Technology Development Co.Ltd(300896) (300896, Unrated). The traditional clothing sector recommends Zhejiang Weixing Industrial Development Co.Ltd(002003) (002003, buy), Bosideng (03998, buy), Zhejiang Natural Outdoor Goods Inc(605080) (605080, buy), Luolai Lifestyle Technology Co.Ltd(002293) (002293, overweight), Zhejiang Semir Garment Co.Ltd(002563) (002563, buy), etc. It is recommended to pay attention to Baoxiniao Holding Co.Ltd(002154) (002154, not rated), Biem.L.Fdlkk Garment Co.Ltd(002832) (002832, not rated), etc. The short-term share price of Shenzhou International, a sports manufacturing giant, fluctuated last week due to the outbreak in Ningbo plant, but the epidemic has gradually improved recently. We believe that the short-term challenge will not change the company's competitive advantage in the global industrial chain, and we are still optimistic about the company's medium and long-term prospects. In the short term, as a whole, we still suggest to focus on the segmentation leaders with relatively certain growth, undervalued value, high roe or high dividend.
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.
