Semi Annual Strategy Of Textile And Garment Industry: New Hope Under The Epidemic Situation

Organization: Zheshang securities

Abstract:

Under the epidemic situation of 20h1, the consumption was affected comprehensively, and the channel was obviously online, which made online service providers / online brands and leading brands become hot spots in the market.

From the perspective of H2 strategy, while grasping the leading brands, we can see that there are still a number of undervalued subdivision leaders in the clothing industry that are ignored by the market, but have abundant cash flow and actively follow the development pace of online channels

Main line 1: white horse is still the most stable choice in the medium and long term. When the industry is facing the problems of sluggish demand and inventory decline, the stronger brand power of the leading enterprises is expected to further occupy the living space of the waist brand. Among them, Anta sports and Li Ning, the sports apparel leaders with high growth rate and large space in the industry, are still the long-term first choice although their valuation is high; meanwhile, the subdivision track leaders such as bosden, biyinlefen and Dishu fashion are also worthy of attention.

Main line 2: under the background that the share prices of leading online and consumer goods Baima have reached new highs, the stock prices of many clothing enterprises are still at the historical bottom, and many of these enterprises have the following signs: (1) the leader of the subdivided track (but the growth of the track is relatively general); (2) the stability of cash flow and performance is good; (3) the stock price and valuation are at the historical bottom; (4) actively keep up with the pace of new retail. We look at this group of traditional brands with a valuation of 10x +. We suggest that we pay attention to fuana, mercury home textiles, anzheng fashion and glens.