Key investment points
This week, the textile and garment sector lagged behind the market by 2.48pct, Comefly Outdoor Co.Ltd(603908) , ST Tianshou, Zhejiang Natural Outdoor Goods Inc(605080) rose ahead. This week (04.11-04.15), SW textile and garment sector fell 3.47%, Shanghai and Shenzhen 300 fell 0.99%, and textile and garment sector lagged behind the market by 2.48pct. Among them, SW textile manufacturing sector fell 3.9%, and SW clothing and home textile fell 2.61%. From the valuation level of the sector, the industry PE calculated by SW textile and garment overall method (TTM, excluding negative value) is 15.57 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) (+ 19.22%), ST Tianshou (+ 10.14%), Zhejiang Natural Outdoor Goods Inc(605080) (+ 7.26%), St Bailong (+ 5.44%) and Shanghai Yimin Commercial Group Co.Ltd(600824) (+ 3.93%).
Household goods sector outperformed the market by 0.04pct this week, with Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) , Zbom Home Collection Co.Ltd(603801) rising ahead. This week (04.11-04.15), SW household goods sector fell 0.95%, CSI 300 fell 0.99%, and household goods sector outperformed the market by 0.04pct. From the valuation level of the sector, at present, the industry PE calculated by SW household goods overall method (TTM, excluding negative value) is 23.68 times and SW furniture is 24.77 times, which is lower than the average value in recent one year. The top 5 companies in the furniture sector this week are: Oppein Home Group Inc(603833) (+ 7.93%), Suofeiya Home Collection Co.Ltd(002572) (+ 4.22%), Zbom Home Collection Co.Ltd(603801) (+ 1.23%), Jason Furniture (Hangzhou) Co.Ltd(603816) (+ 1.15%), Xlinmen Furniture Co.Ltd(603008) (+ 0.65%).
Important industry news:
\u3000\u30001. Sunscreen clothing brand “Jiaoxia” IPO. Jiaoxia officially submitted a prospectus to the Hong Kong Stock Exchange on April 8 and plans to be listed on the main board. According to the report of burning knowledge consulting, Jiaoxia is the largest sunscreen clothing brand in China based on the total retail sales in 2021. The company’s revenue in 2021 reached 2.407 billion yuan, a year-on-year increase of + 203.1%. From 2019 to 2021, the revenue of Jiaoxia was 385 million yuan, 794 million yuan and 2.407 billion yuan respectively, with a compound annual growth rate of 150.1%. Clothing has now become the category that contributes the most to the revenue of Jiaoxia, and its proportion has increased from 0.8% in 2019 to 17.5% and 29.5% in 2020 and 2021. The proportion of income from other products, mainly shoes, also increased to 5.6% in 2021. The revenue generated by online stores and e-commerce platforms increased from 286 million yuan in 2019 to 618 million yuan in 2020, and further increased to 1.947 billion yuan in 2021, with a compound annual growth rate of 160.9%; The number of offline retail stores has increased from 39 in 15 cities as of December 31, 2019 to 66 in 23 cities as of December 31, 2021. As of the last practical date, Jiaoxia has 123 patents in China and is applying for 72 patents;
\u3000\u30002. China’s furniture exports increased in the first quarter. On April 13, the General Administration of Customs released the import and export situation from January to March 2022. In the first quarter of this year, the export volume of furniture and its parts was 106.86 billion yuan, a year-on-year increase of 1.7%; The export volume of ceramic products was 40.91 billion yuan, a year-on-year increase of 7.1%; The export volume of lamps, lighting devices and their parts was 64.13 billion yuan, a year-on-year decrease of 4.2%; The export volume of textile yarn, fabrics and their products was 232.79 billion yuan, a year-on-year increase of 12.6%. From the single month of March, the export volume of furniture and its parts was 35.36 billion yuan; The export volume of ceramic products is 11.85 billion yuan; The export volume of lamps, lighting devices and their parts is 17.37 billion yuan; The export volume of textile yarn, fabrics and their products was 75.09 billion yuan. The import and export of China and its major trading partners have maintained a growth momentum. China’s China and the “one belt, one road” countries have increased their import and export volume by 2 trillion and 930 billion yuan over the same period, up 16.7% from the same period last year, accounting for 31.1% of China’s total foreign trade and import and export value. The total import and export of China and 14 other RCEP member countries was 2.86 trillion yuan, a year-on-year increase of 6.9%, accounting for 30.4% of China’s total foreign trade import and export value.
\u3000\u30003. UNIQLO and bubble mart will launch a joint ut series. Recently, UNIQLO will join hands with bubble mart, a trendy brand, to launch a joint brand series ut on April 29. This is the first time UNIQLO has cooperated with Chinese trendy cultural brands. This season’s UNIQLO x bubble Mart co branded series UT is mainly inspired by the “monsters spirit sky group” created by the well-known artist Mr. long Jiasheng. It sells four men’s and women’s adult clothes (priced at 99 yuan) and four children’s clothes (priced at 79 yuan). The series will be on sale simultaneously with UNIQLO’s official website and handheld flagship stores in UNIQLO’s national stores from April 29. In addition, for the current logistics pressure faced by the whole country, the highways of some UNIQLO suppliers, such as Shenzhou International and Ningbo and Changzhou where Yadong group is located, are closed. Group executives said that Shanghai is indeed affected, but other regions can ensure the supply through digital layout and flexibility.
Important announcement of the company: [Li Ning] 2021 annual report; [361 °] 2021 annual report; [Chow Tai Fook] unaudited main business data for the three months ended March 31, 2022; [Anta Sports] latest operating performance in the first quarter of 2002.
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. The exchange rate fluctuates greatly.
