Newsletter summary
The share prices of A-share textile manufacturers performed strongly in April.HappyanglerThe Hong Kong textile and clothing sector led the growth rate. Domestic clothing society zero year-on-year growth 2Happyangler.5%, online performance is better than offline. Textile and clothing exports from Vietnam and China have picked up, and cotton prices at home and abroad have fallen. Brand clothing and manufacturing OEM performance differentiation, it is recommended to pay attention to sports OEM leaders and low-valuation brands. Risk tips include macroeconomic, political and economic risks and raw material price fluctuations.
Text of news flash
The share prices of A-share textile manufacturing enterprises performed well in April, and the Hong Kong textile and service sector also welcomed the growth.
In the stock market in April, A-share textile manufacturing companies such as Taihua New Materials, Weixing, Kailun, and Sema Garment led to a leading rise in share prices due to their excellent financial performance. Hong Kong stock market is affected by favorable policies and incremental funds, the market continues to rise, textile service plate in the Yue Yuan Group, Jingyuan International, Bosideng performance is particularly strong.
Domestic clothing agencies increased by 2% in the first quarter compared with the same period last year.Happyangler.5%, online sales are better than offline
From January to March this year, the domestic clothing community grew by 2.5% compared with the same period last year, but the overall growth rate was relatively weak. Offline passenger flow may be reduced due to travel diversion, but online sales are more eye-catching. Although brand terminal sales generally declined in April compared with the same period last year, online sales still achieved year-on-year growth.
Analysis of Macro data of Textile Manufacturing Industry, exports from Vietnam and China pick up
In early 2024, textile and clothing exports from Vietnam and China picked up significantly. Vietnam's textile exports grew at a positive rate of 7.9% from January to March compared with the same period last year.HappyanglerChina's textile / clothing exports grew by 15.5% from January to February. 13.1%. However, export growth slowed in March, affected by last year's high base. The PMI index in Indonesia, India, Vietnam and China was all above 50 in April, up from a year earlier, indicating an increase in new orders.
The annual report and the quarterly report concluded that A shares and Hong Kong stock sports brands performed brightly.
According to the 2023 annual report, in the A-share brand clothing industry, men's wear and some high-end women's wear grow rapidly because of their good cost control and improved discount rate, with a substantial improvement in net profit and a general increase in dividend rate. In the field of A-share manufacturing, the order recovery rate of upstream suppliers is faster than that of the middle reaches, and the performance improves quarter by quarter with the completion of downstream brand destocking. Hong Kong stock sports brands such as Anta and 361 degrees performed well, and inventories returned to healthy levels at the end of the year. In the first quarterly report of 2024, manufacturing companies benefited from downstream inventory inflection points, resulting in strong performance, while brand companies generally slowed down and differentiated performance due to the impact of the consumer environment.
Macroeconomic weakness and international political and economic risks are reminders of industry risks.
Investors need to be on guard against potential risks such as macroeconomic weakness, international political and economic risks, and large fluctuations in exchange rates and raw material prices.
Investment suggestions: focus on the warming trend of manufacturing enterprises, brand clothing pay attention to valuation performance-to-price ratio
The warming trend of manufacturing enterprises is becoming more and more obvious, while brand clothing is showing a trend of differentiation. Investors can focus on the sports contract manufacturing leaders Shenzhou International and Huali Group, whose valuation is in the bottom range and with high certainty of medium-term orders. as well as the subdivided track quality manufacturing leader Weixing shares, New Australia shares, and Jiansheng Group, which have sustained good performance and large room for medium-and long-term growth. In the field of brand clothing, it is recommended to pay attention to undervalued brands with both healthy inventory and steady flow growth, such as Hong Kong stock sports leader Anta Sports, Li Ning, Popper and down jacket leader Bosideng, A-share high-quality menswear Biyin Lefen, good news bird, Hailan home and so on.