Event 1: textile and clothing retail data released in April, which is lower than the same period in 2020 under the influence of the epidemic
The retail sales of clothing, shoes, hats, knitwear and textiles in April 2022 was 79.1 billion yuan in the same month, and 79.87/103.05 billion yuan in the same period in 2020 / 2021. The retail sales data of textile and clothing was less than that in previous years, mainly due to the impact of the epidemic. In April, we are optimistic about the rebound of the textile and clothing industry brought by the overall consumption recovery under the background of the improvement of the epidemic situation in China, the recovery of logistics, the improvement of the epidemic situation in South Asia, Southeast Asia and South Asia, the repair of production, and the recovery of consumption in Europe and the United States.
Event 2: Bosideng laid out the outdoor market and opened tmall outdoor flagship store
Bosideng outdoor flagship store has settled in tmall and officially opened on May 17. The products include short sleeved T-shirts, sunscreen clothes, cycling clothes and other summer outdoor sports items, ski clothes, golf series light down, and extreme cold series mountaineering clothes. The overall retail price ranges from 179 yuan to 14900 yuan. The layout of Bosideng outdoor market this time will help the company develop new product lines on the original lines and broaden the company’s revenue structure. At the same time, we believe that in the future, more non outdoor clothing companies may lay out outdoors and further open the market space of the outdoor clothing industry.
Shanghai released the implementation plan for resumption of work and production, and the number of new confirmed cases in Vietnam, Indonesia and India decreased this week
1) China: the domestic epidemic situation has shown a downward trend for several consecutive days. ① Nationwide: on May 20, 31 provinces (autonomous regions / municipalities directly under the central government) and Xinjiang production and Construction Corps reported 201 new confirmed cases and 1010 new asymptomatic infections; ② From the perspective of the epidemic situation control plan, Shanghai will speed up the resumption of work on May 20 and strive to get the data of the resumption of work on May 20. 2) South Asia & Southeast Asia: ① Southeast Asia: Vietnam and Indonesia both saw a double drop in new cases this Sunday, down 44% / 26% from last week, and Cambodia remained free of new cases; ② South Asia: Bangladesh added 35 people on Sunday and India added 2045 people on Sunday, down 27.29% from last week.
Price of raw materials: this week, the price difference between inside and outside cotton widened, the price of imported cotton increased slightly, and the price index of inner cotton and polyester staple fiber ccfei decreased slightly.
The price difference of cotton inside and outside this week was – 3537 yuan / ton, a year-on-year increase of 14.2%. This week, the price of Cotlook: a index (1% tariff) was 25517 on May 19, up slightly by 0.49%. Ccfei price index of polyester staple fiber decreased slightly this week. On May 20, the price of polyester staple fiber was 8433 yuan / ton, down 0.47% from last Friday.
Market performance:
Textile clothing in shenwanyi industry increased by 2.88% this week, ranking 12th; Among the segments, the top three gainers were outdoor (+ 19.35%) / down jacket (+ 9.72%) / luggage manufacturing (+ 9.66%). A shares / Hong Kong shares rose the first, respectively Toread Holdings Group Co.Ltd(300005) (+ 34.56%) / bosden (+ 9.72%).
Investment advice
We suggest continuing to focus on four main lines: 1) Pay attention to Li Ning and Anta sports, which benefit from the Xinjiang cotton incident + Guochao culture + high-quality sportswear with outstanding product strength; 2). Recommend Comefly Outdoor Co.Ltd(603908) , the high-quality standard of “tent OEM + brand” two wheel drive, which benefits from the upsurge of outdoor exquisite camping after the epidemic, and suggest paying attention to Zhejiang Natural Outdoor Goods Inc(605080) , the leading manufacturer of outdoor products mastering TPU material technology; 3). It is recommended that Huali Industrial Group Company Limited(300979) , luggage OEM Anhui Korrun Co.Ltd(300577) and seamless manufacturer of cotton socks Zhejiang Jasan Holding Group Co.Ltd(603558) , which benefit from the triple benefits of “devaluation of RMB + release of production capacity + improvement of the epidemic situation” in the second half of the year. 4). Recommend the high-quality target Luolai Lifestyle Technology Co.Ltd(002293) , which has strong consumption toughness and high dividend attribute.
Risk tips:
Macroeconomic fluctuation risk; Price fluctuation risk of raw materials; Risk of recurrent outbreaks; Rising sea freight; exchange-rate risks
