This week’s view
From April 18 to 22, the exchange rate of the US dollar against the RMB soared sharply. Benefiting from this, the related objects of the light industry and textile and clothing export chain performed well last week. Since the Sino US trade war, Chinese manufacturing enterprises have started the process of transferring production capacity overseas to smooth the risks of tariff rise and exchange rate fluctuations. Last month, the U.S. trade representative’s office announced a new exemption from tariffs on 352 Chinese imports, easing the trade war. Superimposed on the depreciation of RMB, the plight of export-oriented enterprises may gradually usher in a reversal, and the performance and cash flow elasticity will be opened.
Light industry manufacturing: in March, China’s commercial housing sales, new construction and completion data continued the downward trend, and the range was slightly expanded month on month. The social zero of furniture also fell by 8.80% in March, and the export was accelerated month on month. Since the beginning of this year, the relaxation effect of the state’s policy on the real estate industry has not yet been shown. It still takes time to verify the effect of the policy by limiting residents’ demand for house purchase and home consumption. On the other hand, in the year of 21, the net profits of oupai and gujiaguimu increased by 29.23% and 96.87% respectively. Oupai became the first enterprise with a revenue of more than 20 billion yuan in the industry. Q1 family income and net profit attributable to parent increased by 20.05% and 15.11% respectively, significantly higher than the industry growth in the same period. With the increasingly significant Matthew effect in the industry, leading companies have stronger market competitiveness, and their performance growth is also stable. At present, the valuation of relevant targets has been at a reasonable level, which is a good time for the left side to allocate industry leaders for a long time.
After the official introduction of the national standard of e-cigarettes, all localities began to promote the retail planning of e-cigarettes. As of April 24, 26859 e-cigarette retail licenses have been planned. Compared with the existing cigarette sales channels, the number of e-cigarette retail licenses approved is not large. The head e-cigarette brand, which originally dominated in the channel and manufacturing end, may still occupy a better market share in the future through business adjustment and license application.
Textile and clothing: the Ministry of industry and information technology and the national development and Reform Commission jointly issued the guiding opinions on the high-quality development of industrial textiles industry, pointing out that by 2025, the industrial added value of Enterprises above Designated Size will increase by about 6% annually, and 3-5 enterprises will enter the first echelon in the world; Intelligent manufacturing and green manufacturing have significantly improved the quality and efficiency of the industry, and the comprehensive competitiveness of the industry has been further improved; Encourage enterprises to optimize the allocation of production factors through merger and reorganization, and speed up business process reengineering and technological upgrading. During the 14th Five Year Plan period, the intelligent upgrading will further consolidate the position of China’s textile and garment supply chain in the world, and the pattern of constant strength of the strong in the industry will be further consolidated.
Camping has multiple attributes such as sports, tourism, social networking and leisure, and the participation threshold is low. After the outbreak of the epidemic, peripheral tourism and self driving tourism have become the main choices of residents, and the camping participation rate has increased by 15.49 PCT, Camping is expected to become a truly emerging consumption scene in the post epidemic era. The scale of China’s campground industry has exceeded 30 billion yuan and maintained rapid growth. We are optimistic about the growth of one-stop equipment supplier enterprises.
Recommended combinations: Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) ), Jason Furniture (Hangzhou) Co.Ltd(603816) ( Jason Furniture (Hangzhou) Co.Ltd(603816) ), Suofeiya Home Collection Co.Ltd(002572) ( Suofeiya Home Collection Co.Ltd(002572) ), Chenguang ( Shanghai M&G Stationery Inc(603899) ), Toread Holdings Group Co.Ltd(300005) ( Toread Holdings Group Co.Ltd(300005) ).
Risk tips
Macroeconomic fluctuations; Rising raw material costs; New production capacity cannot be digested in time; Loss of key customers.
