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 – 1.63%, – 1.35%, 0.4% and – 1.98% respectively. The industries that performed better this week were pharmaceutical and electrical equipment. The textile and garment sector fell 0.4%, outperforming the Shanghai and Shenzhen 300 index by 2.38 percentage points. The performance of individual stocks in the textile and garment industry was mixed this week, with the top five rising ranges being Annil Co.Ltd(002875) , Comefly Outdoor Co.Ltd(603908) , Ribo Fashion Group Co.Ltd(603196) , Huafu Fashion Co.Ltd(002042) and Hangzhou Nbond Nowovens Co.Ltd(603238) . The last five increases were Guangdong Bobaolon Co.Ltd(002776) , Shanghai Challenge Textile Co.Ltd(002486) , Toread Holdings Group Co.Ltd(300005) , Jinhong Fashion Group Co.Ltd(603518) and kairun shares.
Key investment points
Industry and company dynamics last week
(I) Harson Trading (China) Co.Ltd(603958) pre loss of performance. It is estimated that the net profit attributable to shareholders of listed companies will be – 13 million yuan to – 19 million yuan in 2021, and the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses will be – 24.4 million yuan to – 30.4 million yuan; 2） Annil Co.Ltd(002875) wholly owned subsidiary Annil Co.Ltd(002875) R & D Design Co., Ltd. transferred 20% equity of Shenzhen Hongdong Vision Culture Communication Co., Ltd. held by Changsha Kangzhuo garment partnership (limited partnership) with cash of 80 million yuan; 3） The implementation period of the Biem.L.Fdlkk Garment Co.Ltd(002832) raised funds project ” Biem.L.Fdlkk Garment Co.Ltd(002832) intelligent storage center” is extended to December 31, 2022; 4） Fast Retailing, the parent company of UNIQLO, announced the performance announcement for the first quarter of fiscal year 2022. In the first fiscal quarter from September to November 30, 2021, Fast Retailing revenue and profit increased, with revenue of 627.3 billion yen, a year-on-year increase of 1.2%; The operating profit reached 119.4 billion yen, a year-on-year increase of 5.6%.
Industry rating and investment strategy
According to the data of tmall Taobao in December 21, the overall growth rate of clothing commodities slowed down. 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. 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.
