Pay Attention To Excellent Enterprises With Strong Endogenous Growth In Textile And Garment Industry

Market Review

In the past two weeks, the top five companies in the A-share textile and clothing sector were st modern, jiumuwang, Pathfinder, * ST noble, and Taihua new materials; The top five companies in the textile and clothing sector of Hong Kong stocks were carbine, China LiLang, Jordan international, sunrise enterprises and Weiqiao textile.

Data tracking

In June 2021, clothing retail was + 12.8% year-on-year and + 0.5% month on month; Online retail of wearing goods was + 24.1% year-on-year and - 4.1% month on month; China's clothing export value was + 17.7% year on year. On July 15, 328 cotton price index (yuan / ton) was 17066, with a month on month ratio of + 6.1%. From July 5 to July 11, 2021, Adidas maintained the first place, Li Ning rose from third place to second place, Anta dropped from fourth place to fifth place, Chinese Li Ning rose from eighth to third, special step dropped from 18th to 32nd, and pike rose from 35th to 18th; In men's wear, Hailan house fell from the third place to the 15th place, and the Taiping bird rose from the 14th to the 7th; Among the women's wear, tennie weenie maintained the first place, the taipingniao women's wear fell from third place to fourth place, and Samma fell from 26th to 57th. In terms of overseas news and performance, Ruhong and Yuyuan's factories in Vietnam have been temporarily suspended, Hugo Boss and Levi Strauss have risen sharply. The parent company of Forever 21 will be listed soon. Ling Zhi fashion and adida jointly announced their investment in sustainable biomaterials.

Risk tips

　　1。 The epidemic situation was repeatedly impacted; 2。 The vicious competition of enterprises has intensified; 3。 The recovery of the global economy is slower than expected; 4。 The exchange rate and raw material prices fluctuated greatly.

Investment advice

Recently, a number of Hong Kong Stock / A-share companies have issued performance or forecast, and most of the key companies have performed well. Under the background of post epidemic recovery, supply and demand of the industry are booming. In the first half of last year, the plate was seriously affected by the epidemic, and most companies' performance will rebound sharply in the first half of this year. At the same time, with the gradual weakening of the low base effect of the industry in the future, we pay more attention to the endogenous growth momentum of enterprises outside the low base. We are optimistic about the high-quality enterprises with positive growth compared with that in 2019, and the companies that have laid a good foundation for the long-term development of enterprises after the adjustment of epidemic situation. Our Hong Kong stocks mainly recommend Shenzhou International, Anta sports, Li Ning, taobo, bosden and Tebu international, while a shares mainly recommend SEMAR clothing, Huali group and robust medical.