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 + 0.04%, – 0.86%, – 2.45% and + 1.11% respectively. The sectors that performed better this week were pharmaceutical and electrical equipment. The textile and garment sector fell 3.41%, 4.52 percentage points lower than the Shanghai and Shenzhen 300 index. The performance of individual stocks in the textile and garment industry was mixed this week. The top five rising ranges were Harson Trading (China) Co.Ltd(603958) , Bros Eastern Co.Ltd(601339) , Leshan Giantstar Farming&Husbandry Corporation Limited(603477) , Sanmao B shares and Huasi Holding Company Limited(002494) . The last five increases were Hangzhou Nbond Nowovens Co.Ltd(603238) , Xinjiang La Chapelle Fashion Co.Ltd(603157) , Xinlong Holding (Group) Company Ltd(000955) , Baoxiniao Holding Co.Ltd(002154) and Beijing Sanfo Outdoor Products Co.Ltd(002780) .
Key investment points
Industry and company dynamics last week
I) Bros Eastern Co.Ltd(601339) it is estimated that the net profit attributable to shareholders of listed companies will reach 1.33 billion yuan to 1.39 billion yuan in 2021, which is expected to increase by 964 million yuan to 1.024 billion yuan compared with the same period of last year (statutory disclosure data), with a year-on-year increase of 263% to 280%; 2） Fujian Fynex Textile Science & Technology Co.Ltd(600493) it is estimated that the net profit attributable to shareholders of listed companies will reach 68.63 million yuan to 78.63 million yuan in 2021, an increase of 39 million yuan to 49 million yuan, a year-on-year increase of 132% to 165%, compared with 29.63 million yuan in the same period of last year; 3） Saturday Co.Ltd(002291) it is estimated that the net profit loss attributable to the shareholders of the listed company will range from 430 million yuan to 645 million yuan in 2021; 4） Annil Co.Ltd(002875) it is estimated that the net profit attributable to the shareholders of the listed company will reach 14 million yuan to 20 million yuan in 2021, an increase of 129.90% to 142.72% over the same period of the previous year.
Industry rating and investment strategy
In the context of weakening consumer demand, the polarization of the industry may be further intensified. The market share of leading enterprises is expected to rise further by virtue of brand advantages and differentiated competition. At the same time, due to the recovery of profitability, the performance growth rate is expected to maintain in the short term. 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.
