Industry Stock Market: Investment Strategy Of Textile And Garment Industry In May

Market review: A shares, Hong Kong shares, US shares, Taiwan shares textile plate performance better than the market. In April, a shares, Hong Kong stocks, US stocks and Taiwan stocks went down; Textile plate performance is better than the market.

Brand channel: under the influence of the epidemic situation, social zero pressure in March, and local sports brands performed better in April. In March 2022, clothing agency zero decreased by 12.7% year on year. Since 2022, online retail sales of wear category have increased by 1% year-on-year. Among them, tmall Jingdong textile clothing fell year on year in March, and sportswear / shoes decreased by 10.8% / 10.1% respectively, with a relatively small decline. In the flagship stores of sports tmall in April, Nike and Adi increased by 120% and decreased by 38% respectively, and decreased by 5% and 64% compared with April 2020. Anta, FILA, Li Ning and Tebu decreased by 17%, 1%, 20% and 71% respectively, and increased by 12%, 23%, 17%, 62% and 9% compared with April 2020. In terms of sales volume, the overall sales volume of Senma sound increased relatively quickly, and the overall ranking of sports brands increased rapidly.

In the near future, Vietnam's export price of raw materials decreased slightly, while the price of raw materials decreased slightly in April. From January to March 2022, domestic textile export will be + 27% / - 10% / + 22%, and clothing export will be + 17% / - 8% / + 10%; Since November 2021, Vietnam's textile export has recovered significantly, with a year-on-year increase of 27% / 10% / 19% from January to march of 2022. In March, the number of PMI units in China and Vietnam both declined, and the startup rate of Shengze slightly rose to 69% in late April; Since this year, the cotton price has maintained a high level of 22650 yuan / ton, and the price of nylon filament has slightly increased or remained flat compared with last week; Since the middle of February this year, freight rates have declined at an inflection point. In April, the composite freight rate dropped by 3.4%, and the exchange rate of the US dollar against the RMB rose sharply to 6.62.

Textile and clothing board company announcements and industry news: for a shares, biyinlefen, Weixing, Sanwei medical, and Taihua new materials published annual reports or first quarter reports. In terms of Hong Kong stocks, Shenzhou International, Anta sports and Li Ning disclosed their annual reports or first quarter operating conditions; In terms of news, the city outdoor brand Jiaoxia plans to be listed in Hong Kong stock market.

Investment suggestion: in recent years, the annual reports of textile and clothing companies have disclosed that sports brands at home and abroad have shown brilliant performance and operational efficiency. Since mid March, the domestic epidemic has had a significant negative impact on the fundamentals and valuation of the board, but it does not affect the promotion of medium and long-term high-quality local sports brands and the growth prospects of the industry. Some manufacturing enterprises are affected by downstream demand transmission, but the companies with the advantage of share promotion still have the advantage of growth. From the recent data, the cost pressure is gradually controllable, and we are optimistic about the opportunity of the underlying fundamentals and valuation rebound in Beijing, which is at a historical low. Hong Kong stocks mainly recommend Li Ning, Anta sports, Shenzhou International, Tebu international, bosden and taobo, while a shares mainly recommend Huali group, Taihua new materials, Weixing shares, bienlefen and Shengtai group.

Risk tips: repeated attacks of the epidemic situation, intensified vicious competition among enterprises, international political and economic risks, large fluctuations in exchange rate and raw material prices.