Wan Lian Securities -- A Weekly Report On Textile And Garment Industry

[Abstract]

Market review: last week (June 1st -6 5), Shen Wan textile and apparel index rose 4.38%, 1.63 percentage points higher than the Shanghai Composite Index, and fifth in the 28 industry index of Shen Wan. Since the beginning of this year, Shen Wan textile and apparel index has dropped by 5.10%, running 1.19 percentage points off the Shanghai Composite Index, ranking nineteenth in the 28 sub sectors of Shen Wan. In terms of subdivision plates, textile manufacturing 3.37% last week, clothing home textiles 4.91%, textile manufacturing -8.15% and clothing home textiles -3.45%. The PE of the plate is estimated to be 23.93 of textile production and 37.47 of apparel home textiles.

Important events in the industry: (1) overseas: Canada goose increased 15.4% in total in fiscal 2020, and Kai Yun group committed to donate money to public welfare organizations against racism and violent law enforcement. (2) domestic: balbala will expand again in the three or four line; Semir Anta will increase the layout of children's clothing industry, weaving 2.5 enterprises into industrial clusters; Taiping bird (603877) will play a better game on the Olympic theme; Hai Lan's home (600398) has no problem of high inventory and no increment; Anta and Gudong cooperate to develop national running shoes; Antarctica (002127) 2019 dividend payout 10 10 yuan. La Natsu Bell (603157) accumulatively repurchased 3 million 573 thousand and 200 shares of A shares; the Agency predicted that the epidemic will lose 400 billion yuan in China's clothing market this year.

Important announcements of listed companies: fuanna (002327), mercury home textiles (603365), new Australia shares (603889), red bean shares (600400) distribution of dividends; Xinye textile (002087) public issuance of convertible bond plans; Di Su fashion (603587), Bo Bao Long (002776) shareholders reduction; bialfin (002832), Kai Run shares (300577) issued shareholder reduction progress; Hai Lan home issued share repurchase progress; Kin Sheng group (603558) equity pledge and lifting of the pledge; AOKANG international received government subsidies.

Risk factors: 1. Risk of relapse. 2, inventory rise and fall risk. 3, cash flow risk.