Textile And Garment Industry: Textile Industry Continues To Improve In April

Weekly market review

Last week (May 18, 2020 - May 22nd), the Shanghai Composite Index, Shenzhen stock index and Shanghai and Shenzhen 300 fell by -1.91%, -3.28% and -2.27% respectively. The textile and garment sector fell by -3.00%, of which the textile sector fell by 2.54% and the clothing sector fell 3.24%. In terms of stocks, Meng Jie shares, Kai Run shares, Antarctic electricity providers, Xingye technology and Shenda shares are among the top gainers. They are mainly net red stocks and a company with relatively high income on line.

Recent important events and views

Key events / data: 1) Ali Research Institute released the "2020 China consumer brand development report". In 2019, the Chinese brand market share of Ali online reached 72%, which is gradually gaining the international brand market share. The clothing and cosmetics brands need to strengthen the digital transformation. 2) the central cotton flower information Center released a report that, with the control of the new crown epidemic situation in China, the textile industry in April 2020. The overall operation of the industry continued the trend of improvement in March, and the demand for upstream and downstream terminals of textile enterprises showed a certain reparative change.

Recent view: in the short term, affected by the epidemic situation at home and abroad, the performance of 20Q1 brand clothing and textile manufacturing companies is facing pressure (except for some epidemic related protective supplies manufacturers). At present, domestic epidemic prevention and control is effective, expecting passenger flow and demand to gradually recover. Q1, which is the core of brand clothing, is expected to be bottomed out. However, the epidemic situation is still serious, and overseas demand and spinning are still serious. Maintain caution in taking export. Suggestions: 1) the concept stocks of protective products are highly concerned, especially the global epidemic spread, export demand is expected to increase, short-term performance increases significantly, and relevant production enterprises are concerned. 2) online sales are relatively less affected by the epidemic, focusing on the Antarctic electricity providers with high online income and the acquisition of live TV trademarks on Saturday. 3) after the mitigation of domestic epidemic situation, we should pay attention to the investment opportunities of large scale sectors, such as the high degree of subdivision and the recovery of consumption, including Anta, Lining and so on.

News of industry companies

Industry news: Samsonite international first quarter net loss of more than 700 million U.S. dollars, the impact of the epidemic on the global tourism industry will continue; Burberry latest annual report: the high-end strategy has achieved results, has prepared for the epidemic period; the global beauty market sales will drop 30%, it will take two years to go back to the right track.

The company announcements: the Sanfo family and its foreign joint venture company set up a joint venture with Daji industry to create a parent-child outdoor paradise in Nanjing. The shareholders of Xingye science and technology, Mei Bang dress and Jian Sheng group handled the pledge to postpone the repurchase; the ST noble director Zhou Shiyong resigned; Semir apparel repurchased shares 943 thousand and 300 shares; Saturday held a total of 10 million 761 thousand and 800 shares on Saturday.

Summary of industry data

Grade 328 cotton spot 11900 yuan / ton (weekly decline, 3.34%); American cotton 66.15 cents / pound (-0.23%); viscose staple fiber 8800 yuan / ton (Chi Ping); polyester staple fiber 5960 yuan / ton (5.49%); long staple cotton 19800 yuan / ton (0.51%); inside and outside cotton price difference -1754 yuan / ton (+20.56%).