Textile And Clothing: Continue To Push Forward The Business And Sports Apparel Long Growth Logic.

This week's core portfolio: Kai Run shares / Antarctic electricity supplier / B / V / Anta sports / Lining / mercury home textiles / Semir apparel.

Continuous high growth portfolio: Kai Run shares, Antarctic electricity providers; high prosperity sports brand portfolio: biblfin, Anta sports, Lining; performance improvement portfolio: Mercury home textiles quality leader combination: Semir clothing, Hai Lan home, Song Li Si;

High dividend combination: Nine herding kings: suggestions for attention: China's Lai plate data: the Shanghai Composite Index closed 2932.17 points this week, a change of -2.47% compared with last week's closing; Shenzhen stock index closed at 9548.96 points, a change of -3.36% compared with last week's closing; Shanghai and Shenzhen 300 closed at 3852.65 points, a change of -2.11% compared with last week's closing; shwan textile and garment sector closed at 1884.80 points, a change of -3.02% over last week's closing.

Industry data and perspectives:

1, this week, we released second reports on the 2 times of opening up, and discussed how "millet 90 points" evolved into independent "90 points" brand from the marketing point of view.

1) the 2 era defined by us means that after 90 points are born out of the ecological chain of millet, they create their own 90 brand, with the ability of product design, channel development, brand marketing and supply chain management. Because in the 1 era, 90 points of product visibility were higher than brand awareness, consumers did not have a clear concept and knowledge about the 90 brands. After entering the 2 era, it is the top priority for 90 points to create clear brand image, break the consumer's knowledge of products, but do not understand the brand situation and brand awareness. As a result, 90 points began to take the initiative to launch multi-dimensional marketing promotion, enrich the brand image and connotation, expand product category, expand the construction of its own channels, and become one of the best representatives of "new domestic products" in the recovery of national tide.

2) for details, please see the "evolution of II:90" sub brand released by us. We have analyzed 90 points brand product iteration and channel development in depth, and focused on the company's brand building and marketing measures and changes, so as to further explore the development of the 90 brand in the B2C industry of the B2C group.

2, this week Antarctic electricity supplier released the 2019 equity incentive plan, highlighting the company's long-term development confidence.

1) the incentive targets of the company plan are mainly directors, senior executives, middle managers and core technology (business backbone). The number of incentive targets for the first time is 124.

2) the shares awarded for the first time by the incentive plan are divided into three exercise rights. The 2019-2021 year net profit is more than one year, the growth rate is no less than 36%, 28% and 28%, indicating the confidence of future development.

3) for details, please see our "Antarctic electricity supplier: company comments: issuing equity incentive bill, highlighting the company's long-term development confidence".

3, NIKE released the 2020 financial year Q1 performance bulletin, the Greater China region revenue increased by 27%.

1) the company announced its Q1 performance bulletin in fiscal year 2020 (August 31, 2019 June 1, 2019) to achieve a revenue of 10 billion 660 million US dollars (+7.16%), a net profit of 1 billion 367 million US dollars (+25.18%), and a EPS of 86 cents (+28%), with performance exceeding Market expectations (market expectations: revenue 10 billion 400 million US dollars, EPS70 cents).

2) the Q1 performance highlights in the 2020 fiscal year are still in the Greater China region. With the same bright spot in fiscal year 19, the growth in the Greater China region is still strong. In the 2020 fiscal year, the revenue growth of Q1 big Nike brand in the Greater China region was 21.75% (ExcludingCurrencychanges 27%), achieving 1 billion 679 million US dollars. The pre tax profit in the Greater China region achieved 669 million US dollars (+33%), and its performance achieved rapid growth.

3) NIKE is the absolute leader of the global sports apparel industry. Its performance has continued to grow steadily, and the continuous growth of the Greater China region has become a bright spot in recent years. We continue to look good on Chinese sportswear.

Recommend the main line of investment at present time:

1) a combination of high performance: a new cost-effective domestic product company represented by Kai Run shares and Antarctic electricity suppliers, that is, to meet the "downgrade" demand of second and second line consumption, and to meet the demand of three or four line consumption upgrading. The performance of 2019 is expected to continue to grow at a high level. As the target of our long-term and firm recommendation, 19H1 performance has exceeded market expectations. It is one of the growth stocks that have been certified by the spinning and weaving industry.

2) the high prosperity sports brand portfolio: the sports apparel industry has a high degree of prosperity, and the domestic sports brand has gradually improved its internal strength. It favors Lining, Anta and the bivin, which products are biased towards sports fashion style. The company has released 19H1 performance announcement, exceeding market expectations. Anta sports 19H1 performance exceeded market expectations. Lining 19H1 performance exceeded expectations, net interest rates continued to rise.

3) combination of performance improvement: Mercury home textile as a leading enterprise in home textile industry, 19Q2 performance improved significantly, mainly on line two quarter online channel recovery growth, offline channels maintain a good trend in the first quarter, making 19H1 performance exceed market expectations, continue to recommend.

4) quality leader portfolio: Semir clothing and Hai Lan's home as the leading white horse in the industry. It is estimated that there will be room for improvement in valuation. As a leader in quality women's wear industry, the company's performance is steady and suggests continuous attention.

5) high dividend portfolios: for investors with low risk preferences, they recommend the high score red label "nine herding king" and "China" (recommended attention).

Risk warning: terminal demand is weak, inventory risk, industry adjustment is not up to expectations; industry and company net interest rate fall risk, cash flow pressure risk.