Summary Of The Third Quarter Report Of Textile And Garment Industry: Industry Growth Slows Down And High Quality Enterprises Show Resilience

Industry review: environmental factors disturbance, revenue recovery, turnover improvement, profit decline, 2021 Q3 a share textile services revenue + 5.6%, over the same period of 19 years, net profit decreased by 21%. The gross profit margin was 28.1%, - 7.6p. P.; Inventory turnover days were - 36 days, which was improved. Among them, the growth rate of men's clothing income is relatively stable, while the income and profit of leisure clothing plate are significantly decreased.

Key companies: the recovery is better than that of the industry. Half of the companies' performance exceeded the top 50% of the A-share companies before the epidemic. The net profits of key companies exceeded the same period of 19 years, and nearly one third of the companies' net profits increased by more than 20% compared with that of 19 years; The inventory turnover of most A-share key companies accelerated over the same period of 19 years; Q3, a key Hong Kong stock company, has achieved good growth. According to our expectations, combined with consensus expectations, more than 50% of a shares and overseas companies expect Q4 net profit growth to slow down by more than 20p. P. compared with the previous three quarters., Therefore, Q4 growth may return to normal.

Summary of comments: key brand companies are better than the industry, manufacturing companies grow outstanding sports shoes and clothing plate, Anta sports 21q3 growth is stable, and Li Ning, Tebu international and Huali group grow well; The inventory optimization of Bien lefen and Hailan house has continued to recover with outstanding resilience; The growth rate of Dishu fashion, SEMAR clothing and GELIS 21q3 slowed down, but optimistic about the steady growth of the whole year; Taobo's business gradually recovered and its profit margin was outstanding; Taipingniao's short-term performance is under pressure, optimistic about organizational incentive and winter rebound; The recovery trend of kairun shares is good; Due to high cotton prices, Vietnam's production capacity recovered, and the performance of Bailong Dongfang 21q3 increased.

Risk tips

　　1。 The epidemic situation was repeatedly impacted; 2。 The vicious competition of enterprises has intensified; 3。 Exchange rate and raw material price fluctuation.

Investment suggestion: short term fluctuations bring about valuation adjustment, and are optimistic about the long-term opportunities of high-performance enterprises. From the situation of the third quarter, even if there are external factors such as repeated epidemic situation and weather influence, more than half of the companies' performance recovered to that before the epidemic, and some high-quality companies' performance even greatly exceeded the level of the epidemic situation. We believe that the enterprises which show resilience under the epidemic situation and continue to lead after the epidemic, It has long-term competitiveness. We continue to be optimistic about high-quality enterprises with leading brand power, product strength and business efficiency and health. Hong Kong stocks mainly recommend Shenzhou International, Anta sports, Li Ning, bosden and Tebu international, while a shares mainly recommend Huali group, taipingniao and SEMAR clothing.