Textile And Apparel: China's Market Is Still The Most Robust Growth Point Of International Brands.

Tracking the latest performance of international brands: China remains the most powerful source of growth

From our latest global consumer goods comparison report, we can see that compared with the leading consumer products in China, there is a higher implied yield in comparison with the consumer products. What is the current trend of global clothing consumption? From the latest quarterly results of international brands, we can see that international brand leaders have generally achieved a good growth rate in a weak economic environment, especially in the Chinese market. Nike's excellent performance and Anta's strong semi annual report (revenue growth 35%+/ operating profit growth 50%+/ net profit growth of 25%+) has effectively echoed. The same sports track, but the location is light and luxurious. This week, we disclosed the reply to the inquiry letter of the exchange annual report. We believe that the market is much concerned about the increase in inventory year by year (which is related to the rapid expansion of the scale), while ignoring the high efficiency of new products sold out of the company's database structure and the efficient operation behind it.

Another hot spot in the market this week is the repurchase of Hai Lan's home. From the trend of Hai Lan's home, we can see that under the condition of underestimating the value, Hai Lan's home has experienced a wave of callbacks before announcements. Many value targets have also experienced further undermining in recent times, such as fuanna. The allocation mechanism of this kind of target is mainly the institutions with steady style and pursuit of absolute profits. Their sell-off for this kind of target reflects the extreme pessimism of the future economy, so at present, only the repurchase of real gold and silver constitutes the effective security edge of these investors. However, we believe that since the end of 18, undervalued leaders have repeatedly demonstrated that the value of industrial capital has their own value judgments. From a long-term perspective, leading companies with competitive advantages form a good long-term investment allocation window in the current period.

From the target allocation, there are still two directions. In the context of stable consumption figures and external environment, the semi annual report should pay more attention to the high growth stocks. The core concern is more than that of sound, Antarctica and Kai Run. In the current industry structure, the leading industry with alpha is still the focus of long-term allocation, and has a significant absolute profit space. The core concerns Anta sports, Be Meleven, Semir dress, Bosideng, di Su fashion, Song Li Si and Lining. The manufacturing industry still expects to wait for half a year to digest the bad news. The core concerns are Shenzhou International, Tianhong textile, Huafu fashion and Baron East.

Risk warning: the slowdown in macroeconomic growth has led to a weakening of terminal consumption and the fluctuation of raw material prices.