Industry performance last week
This week, the major indexes continued to show a downward trend. Among them, the Shanghai Composite Index, Shenzhen Component Index, gem and CSI 300 index rose or fell by – 1.65%, – 3.46%, – 6.68% and – 2.39% respectively. The sectors that performed better this week were real estate and household appliances. The textile and garment sector rose 1.52%, outperforming the Shanghai and Shenzhen 300 index by 3.91 percentage points. The performance of individual stocks in the textile and garment industry was mixed this week, with the top five rising ranges being Shanghai Challenge Textile Co.Ltd(002486) , Fujian Fynex Textile Science & Technology Co.Ltd(600493) , Zhejiang Weixing Industrial Development Co.Ltd(002003) , Guirenniao Co.Ltd(603555) and Leshan Giantstar Farming&Husbandry Corporation Limited(603477) . The last five increases are Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) , Guangdong Wanlima Industry Co.Ltd(300591) , Lancy Co.Ltd(002612) , China Dive Company Limited(300526) and Jiangsu Hongdou Industrial Co.Ltd(600400) .
Key investment points
Industry and company dynamics last week
I) Leshan Giantstar Farming&Husbandry Corporation Limited(603477) announced the pre increase announcement of performance in 2021. The net profit attributable to the shareholders of the listed company in 2021 will increase by 117.3099 million yuan to 166.2965 million yuan compared with the same period of the previous year, an increase of 91.87% to 130.25% year-on-year; 2） Baoxiniao Holding Co.Ltd(002154) the non-public offering shares are listed. The number of non-public offering shares this time is 241721855 shares. The number of non-public offering shares does not exceed 30% of the total share capital of the company before this offering, all of which are subscribed by Mr. Wu Zhize in cash; 3） Hongxing Erke announced that Xinjiang Yutian garment production base was officially completed and put into production. The production base will realize the full operation of 120 production lines; 4） Jingdong consumption and Industrial Development Research Institute released the IP co branded consumption report, which pointed out that the proportion of IP co branded commodity sales in the total sales showed an upward trend.
Industry rating and investment strategy
With the Winter Olympics approaching, the attention of ice and snow sports will gradually increase, which is expected to drive the demand penetration of relevant equipment. At the same time, high-end sports shoes and clothing enterprises will continue to benefit. It is suggested to pay attention to the outdoor equipment leader Toread Holdings Group Co.Ltd(300005) , sports shoes and clothing leader Anta sports, Li Ning, etc., and maintain the “overweight” rating of the textile and garment industry.
Risk tips
Risks such as price fluctuation of raw materials, sales falling short of expectations due to economic downturn, Global trade friction and so on.
