Textile And Garment Industry: 618 New E-Commerce Speeds Up Diversion, Fashion Consumption Is Hot In China

Market Review

Last week (2021 / 6 / 14-2021 / 6 / 18), the Shanghai Composite Index, Shenzhen Composite Index and CSI 300 fell by 1.80%, 1.47% and 2.34% respectively, while the textile and clothing sector fell 1.08%, ranking 10th among 28 primary industry sectors, with textile sector down 1.56% and clothing sector down 0.87%. In terms of individual stocks, 361 degrees, Zhongqian shares and Zhejiang Furun ranked first, while Yingfeng shares, Ordos and * ST nobles fell first.

Data tracking

618 data: the consumption of Guochao is hot, and the growth of sports and leisure leaders is beautiful. According to our observation, the sales volume of most clothing segments in the 618 event showed a downward trend. Considering that the sales volume of some brands in the shaking sound stage increased significantly year on year with good performance, we think that the main reason is that each brand increased the launch of the tremolo platform, which caused serious diversion, and increased the promotion of tmall clothing category and the increase of discount. Among them, the sales volume of domestic sportswear and children's shoes increased significantly, which led to a significant increase in sales volume. The domestic leisure clothing brand of shaking sound platform has entered the top ten sales categories with beautiful performance.

Raw material price: 328 cotton spot 15904 yuan / ton (- 1.28%, weekly rise and fall); 9 points / lb (- 1. 66%); Viscose staple fiber 12500 yuan / ton (+ 0%); Polyester staple fiber 6700 yuan / ton (+ 0%); The price difference between domestic and foreign cotton was 376 yuan / ton (1.08%).

Industry company news

Industry news: 1) Hillhead invested 65 million US dollars in two international brands of tebuk, namely gaswell and paladin. 2) The Ministry of Commerce has put in the State Reserve factory silk to stabilize the market expectation. 3) Vietnam Textile Group said China will become Vietnam's largest textile and clothing consumer market. 4) ICONIX, an American brand management company, will be privatized and delisted with a valuation of $585 million.

Key announcement: 1) Trevor International: Hillard will invest about HK $510 million in TEPCO global to jointly develop the global business of gaswell and paladin brands, and subscribe for HK $500 million convertible bonds. 2) Anta Sports: it is estimated that in the mid-term of 21 years, the operating profit will increase by no less than 55%, the net profit will increase by no less than 65%, excluding the loss of the joint venture company, and the net profit will increase by no less than 110%. 3) Antarctic e-commerce: 27.15 million shares were repurchased, accounting for 1.11% of the total share capital, and the transaction price was 7.93-9.95 yuan / share. 4) Taipingniao: Ningbo Penghao, hele investment and PENGYUAN asset management reduced 26.92 million shares, accounting for 5.65% of the total share capital.

Investment advice

Brand clothing: clothing consumption continued to recover, and Guochao's consumption enthusiasm was strengthened during 618. It continued to recommend high prosperity domestic sports apparel leaders, as well as domestic leisure clothing leaders with long-term competitiveness, benefiting from domestic substitution trend and low valuation, such as taipingniao, Senma clothing, Hailan home, Jinhong group, etc. Textile manufacturing: the epidemic situation in Southeast Asia is expected to lead to the return of orders, which will benefit the local textile and clothing industry chain.