Textile And Garment Industry: Clear Industry Improvement Trend

Core ideas

Market review: the CSI 300 index fell 3%, the gem index fell 7.16%, and the textile and garment industry index fell 2.38%, outperforming the CSI 300 and gem indexes. Among them, the textile manufacturing sector fell 1.82%, and the brand apparel sector rose 2.79%. In terms of stocks, we covered nine shepherd king, Weixing shares and SEMAR clothing, etc., and obtained positive income.

Overseas news: (1) Hendry terminated watch retail business in Hong Kong and Macao. (2) Sandro's parent company SMCP changed from profit to loss in the first half of the year. (3) Retail sales continued to fall in July.

(the total amount of funds to be raised by taipingniao company for the purpose of public offering: (after deducting the total amount of funds to be raised by taipingniao and digital technology company) the total amount of funds to be raised by taipingniao company for the purpose of public offering is not more than RMB 80000. (2) Seven wolves: as of September 8, 2020, the company has repurchased 15265910 shares, accounting for 2.02% of the company's current total share capital. (3) Youngor: the company issued an announcement on the disposal of equity investment projects. From September 1, 2020 to September 7, 2020, the company sold 47.3338 million shares of Bank of Ningbo, with a transaction amount of 1605.109100 yuan, accounting for 5.77% of the net assets audited at the end of 2019, and the net profit of 466.3449 million yuan (not audited), accounting for 11.74% of the audited net profit in 2019. (4) 09 / 05 - 09 / 11: investment and financing situation of consumer industry: A. Hanfu ancient costume brand returned to the Han and Tang Dynasties to obtain strategic investment; B. female underwear brand ubras obtained hundreds of millions of Yuan B + round investment; C. men's cosmetics brand blue series obtained 15 million yuan Angel round investment.

This week's suggested plate combinations: Shenzhou International, Li Ning, perleya, Dishu fashion and bosden. The performance of this week's combination: Shenzhou International 2%, Li Ning 0%, pelaia - 15%, Dishu fashion - 6% and bosden - 6%.

Investment proposal and investment target

This week, the market showed a substantial adjustment, textile and clothing industry index outperformed CSI 300 and gem index. In the market overall risk appetite decline, looking for undervalued depression ideas, we believe that the textile and clothing sector leading target is still worthy of attention. On the one hand, from the performance point of view, under the low base effect, the industry's overall sales growth rate is expected to further increase from the fourth quarter of this year to the first half of next year, and the certainty of the improvement of prosperity is strong; on the other hand, the first quarter of the sudden The epidemic situation has further accelerated the survival of the fittest in the industry and the adjustment pace of leading companies themselves. For example, Hailan (strengthening the original weak e-commerce channels), Senma (accelerating the stripping of French loss making business, focusing on the main domestic children's clothing industry) and taipingniao (increasing the input of the supply chain rapid reaction system), and other sub industry leaders have laid the foundation for next year's recovery growth and longer-term competitiveness improvement In addition, the strict control of various short-term costs and expenses is expected to bring greater upward elasticity to the net profit. In the long run, we are still optimistic about the sports industry (021), sports apparel (021), sports apparel (021), etc（ Buy more shares of Jiamei (603, 986003) in this year, and more likely to increase its stake in Shanghai (603, 986003) after the purchase of Jiamei (603, 986003) in the future. Buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy. The low price e-commerce leader focuses on Antarctic e-commerce (002127, increase in Holdings).