Textile And Garment Industry: Zero Social Growth In April, Continued Recovery Of Clothing Consumption

Market Review

Last week (2021 / 5 / 17-2021 / 5 / 21), the Shanghai Composite Index, Shenzhen Composite Index and CSI 300 fell 0.11%, 1.47% and 0.46% respectively, while the textile and garment sector fell 1.35%, ranking 24th among 28 first-class industry sectors, among which textile sector fell 3.68% and clothing sector fell 0.27%. In terms of stocks, Langsha shares, Jinhong group and Rebecca ranked first, while st modern, St start and * ST cross-border decline ranked first.

Data tracking

Social zero data: in April of 21, the total amount of social zero increased by 17.4%, the growth rate increased by 25.2pct compared with the same period last year, and increased by 8.4% compared with April 2019, and the consumption demand continued to rise; Compared with March of 21, the month on month decrease of 16.5pct was mainly due to the low base from January to march of 20 years, and offline consumption recovered from April. Among them, the retail sales of clothing, shoes, hats, needles and textiles increased by 31.2% in April of 21, increased by 49.7 PCT compared with the same period of last year, increased by 3.0% compared with April 2019, and the growth rate decreased by 37.9 PCT month on month. Clothing, shoes and hats were damaged seriously during the epidemic period because of the high consumption elasticity, but the rebound was obvious after the epidemic. Looking ahead to 21q2, as consumption began to pick up in April last year, the growth rate of clothing, shoes and hats consumption may slow down on the basis of continued recovery.

Raw material price: 328 cotton spot 15871 yuan / ton (- 0.33%, weekly rise and fall); Cottook a89.95 points / lb (- 3.69%); Viscose staple fiber 14000 yuan / ton (- 1.41%); Polyester staple fiber 6600 yuan / ton (- 5.71%); Long staple cotton 22800 yuan / ton (+ 0.00%); The price difference between domestic and foreign cotton was 679 yuan / ton (- 18.0%).

Industry company news

Industry news: 1) look at Anta's Olympic layout from the signed national swimming team; 2) After 14 years of dormancy and benchmarking with Zara, China's cross-border e-commerce Sheen has surpassed Amazon; 3) 2021 national cotton planting area and sowing progress survey; 4) Knixwear, a Canadian Internet underwear brand, has completed the b-round financing of US $43.5 million.

Key announcement: 1) Lutai A: it plans to grant 32.45 million restricted shares to 797 incentive objects, accounting for 3.78% of the total share capital of the company. 25885000 shares will be granted for the first time with the grant price of 3.31 yuan / share. 2) Jiansheng group: it plans to buy back the company's shares with a total amount of RMB 100-200 million at a price not exceeding RMB 12.82 per share. 3) Kairun shares: 22.7921 million shares of restricted shares were released, accounting for 9.49% of the total share capital of the company, and the circulation date was 21 / 5 / 24.

Investment advice

Brand clothing: recommend the high-quality target with long-term competitiveness: 1) enjoy the continuous prosperity of the industry and domestic replacement opportunities, and lead the sports apparel industry with significant growth in the first quarter. 2) After the outbreak, the early recovery of Taiping bird, biyinlefen, Desu fashion and so on appeared; 3) Jinhong group, baoxiniao, etc., which have repaired more than expected in 21q1, are advised to keep track of their follow-up performance.

Textile manufacturing: it is recommended to benefit from the high prosperity of downstream sports apparel track and carry out forward-looking global production capacity distribution to Southeast Asia and other low-cost regions, and continuously improve the level of automatic production, with long-term cost and efficiency advantages.