Textile And Garment Industry: The May 1 Small Holiday Industry Is Getting Warmer Soon.

Industry's core view:

Last week, Shen Wan textile and apparel index fell 2.45%, running 1.40 percentage points off the Shanghai Composite Index. A number of textile and apparel listed companies announced their Q1 performance in 2020. They were affected by the epidemic and declined to varying degrees. In the short term, with the recovery of the domestic epidemic situation, the department store's traffic volume is expected to usher in the upcoming May 1 holiday, and the consumption of coupons will be superimposed. In the medium to long term, this epidemic has prompted people to form a habit of physical exercise. With the increase of the number of people going out, it is recommended to pay attention to the high quality sports clothing enterprises affected by the epidemic situation.

Main points of investment:

Market review: last week (April 20th -4 24), Shen Wan textile and apparel index fell 2.45%, running 1.40 percentage points off the Shanghai Composite Index, and twenty-sixth in the 28 industry index of Shen Wan. Since the beginning of this year, Shen Wan textile and apparel index has dropped by 4.45%, which has won 3.47 percentage points of the Shanghai Composite Index and ranks sixteenth in the 28 sub sectors of Shen Wan. In terms of subdivision plates, last week, textile manufacturing -1.54%, clothing home textiles -2.93%, textile manufacturing -5.12%, home textile -4.09%. The PE of the plate is estimated to be 21.68 of textile production and 27.46 of apparel home textiles.

Important events in the industry: (1) foreign companies: LVMH group's net sales in the first quarter fell 15% year-on-year; the first quarter sales of Kai Yun group fell 15.4%, and Hermes sales fell 6.5%. (2) domestic companies: the net profit of the company in the year 2019 increased by 39.13%; Lining's retail sales fell by 10% to 20% in the first quarter, while Anta's first quarter performance dropped by over 20%; the retail sales in the first quarter decreased by 25%-30% compared with the same period in the first quarter, while XTEP's sales fell 20% in the first quarter. (3) industry situation: in 2019, the specialized market of textile and garment was changed by pressure; in March, the retail sales of clothing were better than that in February, and the passenger flow had not yet fully recovered.

Important announcements of listed companies: kaorun shares, Anne, Taiping bird, Pathfinder and news birds released annual reports; Bob long and hang min shares issued a quarterly report; Kang Longda's A share plan was issued in public; Kang Longda, Bi Yin Fen Ling publicly issued convertible bonds; positive fashion shareholders pledge; Jen Sheng Group profit distribution.