The State Council deployed policies and measures to promote consumption, helped stabilize the economic fundamentals and ensure the improvement of people’s livelihood, and benefited the growth of the garment industry in multiple dimensions. Anta special step Li Ning’s 361 degree outstanding performance in 2021, the 2022q1 sports leading advantage continues, the sports leading competitiveness is obvious, and the high growth of the sports industry can be expected.
The multi-dimensional measures of the State Council will release the consumption potential and benefit the development of the garment industry. At the executive meeting of the State Council held on April 13, 2022, the State Council deployed policies and measures to promote consumption, help stabilize the economic fundamentals and ensure the improvement of people’s livelihood. Policies and measures such as promoting consumption development, promoting Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration and promoting rural consumption will benefit the growth of the garment industry in terms of improving the retail environment, promoting the development of garment e-commerce and benefiting the development of mass brands. In March and April, clothing retail is expected to fluctuate due to the impact of the local epidemic, but retail is expected to recover gradually with the elimination of the impact of the epidemic.
In the post epidemic period, the health concept of residents has been strengthened, and the leader of sports shoes and clothing Wuxi Online Offline Communication Information Technology Co.Ltd(300959) has developed at a high speed. In 2021, the four leading sports companies achieved double-digit growth. The revenue growth rates of Anta sports, Li Ning, Tebu international and 361 degrees were 38.91%, 56.13%, 22.53% and 15.72% respectively. On the online side, sportswear companies have actively deployed multiple platforms, developed new channels such as online live broadcasting, and achieved high growth in e-commerce revenue. Offline, sportswear companies pay attention to improving the quality of stores, and the effect of terminal sales is obvious. All sports brands achieved high growth in 2021, fully reflecting the high prosperity of sportswear and the high-quality product power and operation ability of leading brands. 2022q1 sports leading advantage continues.
Under the current situation, we continue to pay attention to the targets with good performance. Popular casual wear is recommended Hla Group Corp.Ltd(600398) , Zhejiang Semir Garment Co.Ltd(002563) . Middle and high-end clothing recommendations Baoxiniao Holding Co.Ltd(002154) , Biem.L.Fdlkk Garment Co.Ltd(002832) , Shenzhen Ellassay Fashion Co.Ltd(603808) , Bosideng, Dazzle Fashion Co.Ltd(603587) . In terms of sports clothing, under the background of high industry outlook and recovery of demand, we mainly recommend Hong Kong stocks Anta sports, Li Ning and Tebu international. The home textile industry Wuxi Online Offline Communication Information Technology Co.Ltd(300959) has a good growth. It is recommended to focus on Luolai Lifestyle Technology Co.Ltd(002293) , and it is recommended to pay attention to Shanghai Shuixing Home Textile Co.Ltd(603365) , Shenzhen Fuanna Bedding And Furnishing Co.Ltd(002327) . In terms of upstream textile manufacturing, with the effective control of the epidemic at home and abroad and the stabilization of orders at home and abroad, the integrated footwear ODM manufacturer Huali Industrial Group Company Limited(300979) ; Shenzhou International, a manufacturing leader with perfect production capacity layout, and the wool fine spinning leader Zhejiang Xinao Textiles Inc(603889) , which is expected to rise both in volume and price under the rise of wool price.
Sector review: this week’s GEM (- 4.26%), Shenzhen Composite Index (- 2.60%), Shanghai and Shenzhen 300 (- 0.99%), and Shanghai Composite Index (- 1.25%). The textile manufacturing sub sector fell by 3.91%, and the clothing and home textile sub sector fell by 2.61%.
Announcement of key companies: Baoxiniao Holding Co.Ltd(002154) released the 2021 annual report. During the reporting period, the revenue increased by 17.5% and the net profit attributable to listed shareholders increased by 27.7% Biem.L.Fdlkk Garment Co.Ltd(002832) released the 2021 annual report. During the reporting period, the revenue increased by 18.1% and the net profit attributable to listed shareholders increased by 25.2%.
Industry news list: affected by the epidemic, cotton consumption space has been squeezed; Li Ning was listed in the top 50 list of clothing brand value in 2022 released by brandfinance for the first time.
Risk factors: the epidemic situation is uncertain, and the consumption recovery is less than expected
