Textile And Clothing Industry: Plate Continues To Be Active, Layout Is Expected To Be The Leader Of Rapid Growth

Market review: the CSI 300 index fell by 1.09%, the gem index increased by 1.72%, and the textile and garment industry index fell by 1.21%. The performance was between the CSI 300 index and the gem index, with the textile manufacturing sector rising 2.31% and the brand clothing sector falling 3.55%. In terms of individual stocks, the nine shepherd king, the house of Hailan and the seven wolves have made positive profits.

Overseas news: (1) Sequoia China invests in Canadian fashion e-commerce ssense（ 2) "Kanye"

The first yeezy gap product launched with gap（ 3) LVMH group set up a 30 million euro new fund to provide financial assistance and psychological guidance on demand to 150000 employees.

Important information of industry and company: (1) Chow Tai Fook: in fiscal year 2021, the annual turnover of Chow Tai Fook was HK $70.164 billion, a year-on-year increase of 23.6%; Gross profit was HK $20.075 billion, up 24.7% year on year; The profit attributable to shareholders was HK $6.026 billion, up 107.7% year on year（ 2) Biyinlefen: the company has released the performance forecast for the first half of 2021, which is expected to achieve a profit of 234 million yuan to 250 million yuan in the first half of 2021, an increase of 45% to 55% over the same period of last year, and continue to maintain high growth（ 3) Langzi Co., Ltd.: Mr. Shen Dongri, the controlling shareholder and actual controller of the company, and Mr. Shen Bingyun, the person acting in concert with the actual controller, Ms. Shen Jinhua, intends to reduce his shareholding of the company by no more than 19876900 shares, accounting for 4.49% of the total share capital of the company through centralized bidding transaction or block trading.

This week's suggested plate combinations: Anta sports, Li Ning, pelaia, Shenzhou International and taipingniao. This week's combination performance: Anta Sports 1%, Li Ning 0%, pelaia 0%, Shenzhou International 1% and taipingniao - 5%.

Investment proposal and investment target

In the week before the festival, the textile and clothing sector index was adjusted, and some small market capitalization and low market attention stocks in the industry ranked first, reflecting the continuation of the activity of individual stocks in the whole sector under the diffusion of profit making effect this year. As the second quarter enters the closing stage, the market's expectations of the Chinese newspaper are gradually warming up. We suggest that we focus on the targets that are expected to exceed the expectations or realize the rapid growth of performance in the second quarter. Due to the low base of last year, most companies in the industry will maintain an obvious recovery year on year, and there will also be different degrees of growth compared with the 19 years (gold jewelry, medical beauty, cosmetics, etc Sports and leisure and other sub sectors performed well). This year, the rise of commercialization of emerging platforms such as shuoyin Kuaishou in e-commerce channels has brought greater traffic dividend and sales increment to some brands in the industry with early transformation and outstanding social media operation ability. It will also become one of the important variables for overtaking in the curve of e-commerce in the whole year. In terms of configuration, we suggest that in the short and medium term, we should pay attention to brand clothing leaders such as Taiping bird (603877), Senma clothing (002563), rolai life (002293, increase), Hailan home (600398), Desu fashion (603587) and biyinlefen (002832, not rated), etc., which are undervalued and whose performance has improved rapidly since the first quarter, while black horse's proposal should focus on the happy bird (002154, not rated). In the medium and long term, our first choice is still high prosperity sports apparel and big beauty (cosmetics and medical beauty) and other deterministic tracks. Among them, the sports apparel sector recommends Shenzhou International (02313), Anta sports (02020), Li Ning (02331), etc. at the same time, it is suggested to pay attention to Tebu International (01368, increase Holdings) and taobo (06110, increase Holdings). In the medium and long term, the big beauty sector is optimistic about perair (603605) and Maru Mei (603983), Shanghai Jiahua (600315, increased), betaine (300957, increased), Huaxi Biology (688363, not rated) and AMEC (300896, not rated) should be paid attention to. In the gold and jewelry industry, we continue to be optimistic about Laofengxiang (600612), the first leading company in China. Hong Kong stock down clothing leader in the medium and long term optimistic about bosden (03998).

Risk tips

The repeated global outbreak of new crown pneumonia, the pressure of economic slowdown on domestic retail terminals, trade friction, cotton price and RMB exchange rate fluctuations.