Textile And Garment Industry Weekly: The Industry Built The Bottom In The First Quarter, Leading Companies Practicing Internal Strength

Last week's market review:

Last week, the textile and garment industry rose 3.56%, ranking twentieth in 28 industries, and lost the Shanghai and Shenzhen 300 index 1.87PCT.

Last week, the top five stocks were: favorite, blonde Rabbi, business win global, modern Avenue, and Xingye technology. Last week, the top five stocks were Busen shares, Ann's, kanglongda, Huafang shares and haylang's home.

Last week, the industry was hot:

Us outdoor veteran Columbia released its 2018 fiscal year results, showing year-on-year sales growth of 14% to $2 billion 802 million.

Operating profit increased 33% to 351 million US dollars and net profit rose 155% to 268 million US dollars.

Among them, the growth of business in China is in double figures.

Alibaba's cross-border electronic commerce platform, global express, signed a strategic cooperation agreement with Semir electric supplier.

In the second half of 2017, Semir entered the speed flagship store, and cross-border sales entered the era of rapid growth.

In 2018, double 11, Semir's children's clothing brand Balabala turnover in fast selling business tripled last year, the growth rate is much higher than the same type of store.

MUJI once again lowered the price range from 10% to 25%.

MUJI's star products, the ultrasonic aromatherapy machine, also cut prices by nearly 30%.

Listed companies focus on:

B: 2018 annual earnings report, net profit +60.98%.

Hui Jie shares: 2018 annual performance bulletin, net profit -25.48%.

Pathfinder: 2018 annual performance bulletin, a loss of 84 million 853 thousand and 900 yuan in search of special: 2018 annual performance bulletin, net profit -36.06%.

Nine Mu Wang: a joint venture with Chao brand Kitsun ye France: in February 18th, the company announced that it invested 76 million 500 thousand yuan to establish a joint venture with "Kitsun fox France", "little fox (China) Limited", which will carry out Maison Kitsun Ye brand business in mainland China, Hongkong and Macao, and nine Mu Wang shares 50% in the joint venture company.

Investment strategy and key recommendations:

Last week, we investigated two listed companies, Hai Lan's home and Pacific bird, which generally reflected that the industry's growth pressure in the first quarter or even the whole year is still large.

But at the same time, the Matthew effect of the industry is more obvious. The leading companies are holding high-quality suppliers at the supply side, and the small brands are difficult to sustain on the sales side.

The leading companies through the practice of internal strength to surpass the development of the industry, the main ways are: brand style adjustment, attracting young passenger flow; channel structure adjustment, increase the number of shopping center stores; supply chain adjustment, with fixed sales to find marketable products, improve the sales rate.

Recommended targets: adult casual wear and children's wear double headed Semir costumes, and men's wear leading LAN Hai's home.

Upstream manufacturing side, it is recommended to pay attention to the overseas production capacity in the release period of Baron East and Huafu fashion.

Risk warning: Residents' income level is declining, residents' consumption will continue to slump, and terminal clothing sales decline.