Core view
Market review: throughout the week, the CSI 300 index fell 0.99%, the gem index fell 4.26%, and the textile and garment industry index fell 2.96%, which is between the CSI 300 and the gem index. Among them, the textile manufacturing sector fell 3.86%, and the brand clothing sector fell 2.16%. In terms of individual stocks, Zhejiang Natural Outdoor Goods Inc(605080) , Li Ning and Anta Sports covered by us have achieved positive returns.
Overseas highlights: (1) Fast Retailing, the parent company of UNIQLO UNIQLO UNIQLO, outperformed expectations in the first half of the year. (2) LVMH LVMH performed better than expected in the first quarter. (3) Levi’s Levi Strauss, parent company of Levi’s Levi’s, had a record gross profit margin in the first quarter.
Important information of industry and company: (1) Biem.L.Fdlkk Garment Co.Ltd(002832) : in 2021, the company achieved an operating revenue of 2.72 billion yuan, a year-on-year increase of 18.1%; The net profit attributable to the parent company was 620 million yuan, a year-on-year increase of 25.2%. (2) Baoxiniao Holding Co.Ltd(002154) : in 2021, the company achieved an operating revenue of 4.45 billion yuan, a year-on-year increase of 17.5%; The net profit attributable to the parent company was 460 million yuan, a year-on-year increase of 26.7%. (3) Zhejiang Weixing Industrial Development Co.Ltd(002003) : in 2021, the company achieved an operating revenue of 3.36 billion yuan, a year-on-year increase of 34.4%; The net profit attributable to the parent company was 450 million yuan, a year-on-year increase of 13.2%. (4) 4 / 2 ~ 4 / 8 investment and financing of consumer industry: A. outdoor equipment brand naturehike has completed a round of financing of nearly 100 million yuan; B. moodlab, a ski clothing brand, has completed Angel round financing of nearly ten million yuan. C. Dodowo, a producer of cultural derivatives, completed strategic 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) -6%, Huali Industrial Group Company Limited(300979) -5%, Anta Sports 4%, Li Ning 6% and Zhejiang Natural Outdoor Goods Inc(605080) 7%.
Investment proposal and investment object
On Friday, the central bank announced that it would cut the reserve requirement by 0.25 percentage points, release long-term funds of about 530 billion yuan, reduce the comprehensive financing cost of society, and increase support for the real economy. The signal of stable growth of financial policies is clear, which is relatively more beneficial to pro cyclical industries such as finance, real estate and bulk commodities. For optional consumption, the core variable at present is still the impact of the national multi-point frequent epidemic on the normal operation of offline stores, logistics distribution and other links. 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 timeliness of current logistics, and there is a certain discount on sales transactions and shopping experience. The centralized disclosure of the first quarterly report will be launched next week. Under the impact of the epidemic, it is expected that the performance of most brand clothing companies in the first quarter will be under pressure, and the profit performance is expected to be weaker than the income side under the rigid expense. In the second quarter, the retail pressure in April is further greater than that in March. However, if the epidemic in China can be effectively controlled, terminal consumption is expected to usher in a significant rebound from May to June, and the final progress still depends on the development of the current 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 high prosperity of sportswear and beauty care (cosmetics and medical beauty). The sportswear sector recommends Li Ning (02331, buy), Anta sports (02020, buy), Huali Industrial Group Company Limited(300979) 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 recommended to pay attention to Biem.L.Fdlkk Garment Co.Ltd(002832) ( Biem.L.Fdlkk Garment Co.Ltd(002832) , not rated).
Risk tips
The repeated global epidemic, the pressure of economic slowdown on China’s retail terminals, trade friction, inflation and RMB exchange rate fluctuations.
