Clothing And Textile: The Opening Of Festival Festival Activities Is Expected To Boost The Performance Of Garment Home Textiles.

Industry's core view:

Last week, the major e-commerce platforms launched the "annual festival" promotional activities, and the activities of the major brands were also synchronized. The demand for the Spring Festival home and new year purchases is expected to stimulate the growth of clothing home textile consumption. This growth is expected to continue in January until around the Spring Festival, which will play a positive role in promoting the recovery of the sales performance of home textile enterprises.

Taking into account the concentration of annual sales, it is recommended to focus on online apparel brand enterprises with strategic cooperation with Tmall and Jingdong, as well as those with better quality outlets.

Main points of investment:

Market performance: the Shanghai Composite Index rose 0.84% last week, the SW textile and garment industry rose by 0.26%, and the SW textile and garment industry lost 0.26% of the total market share. The top five companies in the sector were: Meyer (600107, stock bar) (+17.64%), Tian Shou development (+11.89%), Huasheng share (600156, stock bar) (+8.31%), Zhen Jing shares (+6.81%), Meng Jie shares (+5.11%), and the five before the plate fall were: day broadcast fashion (-18.01%), Shanghai Sanmao (600689, stock bar) (-7.62%), more love (002761, stock bar) (-7.54%), Baron East (601339, stock bar) (Be Meleven) (-7.54%).

Plate Valuation: last week, the SW textile and garment industry PE was 19.49 times, the PE made by SW textile was 16.87 times, and the PE of SW clothing home textile was 22.35 times.

SW's PE of textile and clothing is 0.47 times higher than that of last week. At present, the PE of the industry is still far below the 2018 average.

Industry trends: oil price retaliatory rebound, polyester filament "Dongfeng" to arrive, cold air frequently, the price of raw materials for double down clothing doubled, processing enterprises profit pressure; overseas purchasing restriction, luxury goods consumption back flow; Keqiao printing and dyeing industry high quality development.

Company announcement: Tien Chong fashion issued a convertible bond issuance plan; Taihua new material issued a notice of issuing convertible bonds; Bo Bao Long (002776, stock bar), blonde rabbi (002762, stock bar) issued a notice of shareholding reduction of the shareholders, preferred issuing passive announcement of shareholders' reduction; Xingye Technology (002674, stock bar) issued a revised announcement on performance, and vicknas (603518, stock bar) issued the 2018 annual performance notice; the announcement of the first share repurchase announcement was made by BL, the Red Dragonfly (603116, stock bar); the blonde Rabbi issued the announcement of the two project cooperation agreement; the Taihua new material and Semir dress (002563, stock bar) issued a notice on the establishment of a subsidiary company.

Risk warning: risk of declining performance of listed companies; risk of raw material prices and exchange rate fluctuations