Textile And Garment Industry: Burberry And Prada, China'S Market Is Recovering Positively.

This week's point of view

The price of melt blown fabric is polarized. Since May, the 95 level of melt blown fabric has been difficult to handle and the price has continued to decline. Recently, with the gradual release of capacity, the price of grade 95 melt blown cloth is also dropping.

At present, we recommend three main lines of concern: (1) the recovery stage of the post epidemic situation, focusing on the early impact of customer chop, but the excellent foundry enterprises that are expected to increase share in the medium and long term: Kai Run share, Jen Sheng group, and Hong Kong stock foundry white horse. This week, we released the "deep report of the shares"; (2) the apparel industry's offline terminal is now recovering slowly, with the best campaign and high level. End track, focus on inventory level and terminal Discounts: sports industry Q1 decline is lower than the industry average level, at present, 4 and May recovery may be slightly lower than the end of 3 optimistic outlook, mainly due to the international brand discount intensity is bigger, short-term fluctuations do not affect the long-term prosperity, continue to recommend Lining, Anta, Be Meleven; (3) electricity supplier plate affected by the epidemic less, continue Recommended Antarctic electricity supplier.

Market review: loss of Shanghai Composite Index 0.38PCT

This week, the SW textile and garment sector fell 2.29%, losing the Shanghai Composite Index 0.38PCT and winning the gem 1.37PCT. Among them, SW textile manufacturing fell 1.39%, SW apparel home textile fell 2.68%. At present, the PE of SW textile and apparel industry is 17.12, down from last week. In terms of stocks, Meng Jie shares continued to rise 26.60% this week, mainly due to the holding of Wei Ya and exploring the C2M mode. Kai Run shares rose 9.98%, the future growth space lies in: 2B terminal on the basis of NIKE endorsement further expand the large customers, superimposed category expansion, 2C end by creating brand matrix, seize market share.

Industry performance:

Domestic cotton prices continued to rise this week. As of May 22nd, the price of China's cotton 328 index was 11900 yuan / ton, up 3.34% this week. As of May 22nd, the closing price of the CotlookA index was 66.15 cents / pound, up 0.15% this week. Overall, the difference between the inside and outside cotton prices this week expanded by 408 yuan / ton to 1555 yuan / ton. The United Nations Food and Agriculture Organization in Pakistan recently issued a report that Pakistan and Iran are likely to have large locusts in the coming months. Pakistan is expected to incure incursions from East Africa and Iran locusts between late June and the end of July.

Industry news

Burberry: the high-end strategy has been effective. By the end of March, the market share of China and South Korea has been growing positively. Armani: Italy stores took the lead in reopening the business, announced new measures for the second phase of the epidemic; the number of sales in the Chinese market increased by two in the month of Prada:4; the income in March before the year March dropped by 2%; all the Asia Pacific stores reopened; and Nike: 95% in the Greater China and South Korea. Camp and third party stores reopened.