Textile And Garment Industry: Sportswear Leader Sets A New Record

Core ideas

Market review: the CSI 300 index rose 0.84%, the gem index rose 2.16%, and the textile and clothing industry index fell 2.34%, which was weaker than the CSI 300 and gem indexes. Among them, the textile manufacturing sector fell 1.52%, and the brand clothing sector fell 2.93%. In terms of individual stocks, the A-share key companies covered by us generally performed generally in general, and the Hong Kong stock companies we preferred were all performing well. Among them, Anta sports, Li Ning and Shenzhou International set a record high.

Overseas news: (1) make efforts to "super food", Nestle and FANCL jointly launched the regular order service of simuxue granules in Japan. (2) Amazon launched "made for you" online clothing customization service. (3) Ynap, a luxury e-commerce company, will equip its own brands with digital ID from 2021.

Important information of industry and company: (1) Lao Fengxiang: Mr. Zhang Zhouming has applied to resign from the position of supervisor and chief supervisor of the 10th board of supervisors of the company because he has reached the legal retirement age. The resignation shall take effect when the resignation report is delivered to the board of supervisors. Mr. Zhang Zhouming will no longer be the chief supervisor of the company after his resignation. (2) Red Dragonfly: the company and its subsidiaries received 15.5793 million yuan of government subsidies from July 1, 2020 to December 21, 2020. (3) Anta Sports: the company sold assets (including shares and intellectual property rights) of Precor, a non core brand of amersports, at a total cash cost of US $420 million (equivalent to about HK $32686). (4) Investment and financing of consumer industry from 12 / 19 to 12 / 25: A. beauty new retail enterprise completed a round of financing with tens of millions of yuan in East Point and West Point; B. skin care brand doctor mysteriously received tens of millions of yuan pre-A round of financing; C. manner, a boutique coffee brand, completed a new round of financing.

This week's suggested plate combinations: Anta sports, Li Ning, pelaia, bosden and SEMA clothing. The performance of this week's combination: Anta Sports 10%, Li Ning 8%, pelaia - 5%, Semir clothing - 4% and bosden 1%.

Investment proposal and investment target

Near the end of the year, the market performance was obviously differentiated. Under the concern of liquidity tightening, institutions continued to group consumption of hot sectors such as Baima and new energy, while other stocks performed weakly, opening up space for allocation in 2021. From the perspective of industry fundamentals, after a brief correction in retail demand in November, with the general cooling of the whole country in December, clothing consumption has further warmed up in a single month. At the current time point, we think that the leading companies with undervalued value that have been adjusted more recently deserve attention. Driven by the economic recovery and consumption recovery, the improvement of these leading fundamentals is quite certain. From the fourth quarter of this year to the first half of next year The year-on-year growth rate of physical sales is expected to further increase, and the net profit elasticity will be greater; on the other hand, considering the valuation switching, most leading companies return to the historical bottom area corresponding to 2021, and the market attention and institutional positions are generally low. Considering the defensive valuation and aggressive performance, the attractiveness of these undervalued white horses is further enhanced.

In 2021, our preferred investment strategy for the industry is still high prosperity sports apparel, cosmetics, e-commerce operation and other deterministic tracks. Among them, the sports apparel sector continues to recommend Shenzhou International (02313, buy), Li Ning (02331, buy), Anta sports (02020, buy), pay attention to taobo (06110, increase), cosmetics sector is optimistic about pelaia (603605, buy) and Maru Mei stocks in the medium and long term Shanghai Jiahua (603983, increase) is recommended to pay attention to Shanghai Jiahua (600315, increase) which may have greater upward flexibility after adjustment. We suggest that we should pay attention to the textile and clothing accessories leader with stable undervalue or significant terminal recovery improvement. We suggest that we pay attention to Desu fashion (603587, buy), Hailan house (600398, buy), fuana (002327, buy), Roley life (002293, increase), semma clothing (002563, buy) and taipingniao (603877, increase). E-commerce leaders focus on Antarctic e-commerce (002127, increase in Holdings). Cold winter's most beneficial target continued to recommend bosden (03998, buy).