Textile And Garment Industry: Clothing Industry Will Continue To Narrow Its Zero Decline And Usher In A Warmer Period.

Industry's core view:

Last week, the National Bureau of Statistics announced zero data. In April, the retail sales of clothing, shoes and hats and needles and textile products above the quota were 79 billion 900 million yuan, down 18.5% from the same period last year, narrowing 16.3 PCT compared with March. In online retail sales of physical goods, wear commodities dropped by 12%, narrowing 3.1 PCT compared with the March decline. In the short term, the effect of promoting consumption policy is initially apparent. With the continuous promotion of the resumption of industry and the resumption of schooling in China, the volume of passenger traffic in major business circles has gradually increased, and the textile and garment industry has come to a warmer period. In the medium to long term, this epidemic has prompted more people to pay attention to physical health and physical exercise. In the future, with the increase of people's activities and the cultivation of exercise habits, the demand for sports apparel is expected to rebound strongly. It is recommended to pay attention to the top quality sports clothing leading enterprises affected by the epidemic.

Main points of investment:

Market review: last week (May 11th -5 15), Shen Wan textile and apparel index fell 0.6%, 0.33 percentage points higher than the Shanghai Composite Index, and twelfth in the 28 industry index of Shen Wan. Since the beginning of this year, Shen Wan textile and apparel index has dropped by 8.19%, running 2.24 percentage points off the Shanghai Composite Index, ranking twenty-first in the 28 sub sectors of Shen Wan. In terms of subdivision plates, last week, textile manufacturing -0.95%, clothing home textiles -0.42%, textile manufacturing -9.47%, home textile -7.52%. The PE of the plate is estimated to be 23.66 of textile production and 34.42 of apparel home textiles.

Important events in the industry: (1) overseas: Sales of Under Armour declined by 23% in the first quarter; Gap group joined hands with IMG company; the sales of H&M were greatly reduced by the epidemic situation; Nike announced the reopening of the US stores; the Cage line opened the new store online for busy promotion. (2) domestic: La Natsu Bell's self rescue measures are not good enough; the birds have been in the market for two consecutive years; the ZARA Versace Givenchy clothing failed to be sampled. (3) industry: the clothing market was seriously affected by the epidemic in the first quarter.

Important announcements of listed companies: initial shares, INTERCHINA group, Meng Jie shares, many favorite, Sanfo outdoor shareholders reduction; profit distribution of Kai Run shares, Yanjiang shares, Longzi shares, di Su fashion and Xingye technology; and Kang long Da issues convertible bonds.