avetlx63raptor|纺服聚焦：品牌平稳度过高基数 制造延续高景气

After the disclosure of the quarterly report of the textile and clothing plate, the brand and home textile plate smoothly passed the high base of 1Q24, the revenue of the textile manufacturing sector recovered as scheduled, and the increase in capacity utilization led to a higher-than-expected profit growth rate. Comment on brand clothing and home textiles: smoothly through the high base of 1Q24, looking forward to subsequent performance flexibility; high dividend attribute remains the same, catalyzing the short-term market. Under the high base, the income of 1Q24 brand clothing and home textile sector is + 3% compared with the same period last year, and the net profit is + 0% compared with the same period last year.Avetlx63raptor.4%. Among them, the menswear sector shows resilience, with 1Q24 revenue + 9% year-on-year and home net profit + 11% year-on-year. Among them, the income of Biyin Lefen / Highland House / Nine Shepherd King / good News Bird respectively compared with the same period last year, the year-on-year income of Biyin Lefen / Highland Home / Nine Shepherd King / good News Bird were + 18%, 9%, 22%, 5%, 5%, + 20%, 10% and + 95%, respectively. In other sectors, 1Q24 Samar Apparel / Fuana / Jinhong Group outperformed the industry average, with year-on-year income of + 5% plus 5% and return to home net profit of + 11%, 10% and 13% respectively. With a high base, 2Q24 can still look forward to performance flexibility at the beginning. For branded clothing, the base began to decline gradually in May 2023, as the sector still recorded a stable performance in 1Q24, which had the highest base for the year.Avetlx63raptorWe think it is still possible for 2Q24 to start flowing and achieve restorative growth. Dividends generally rise, catalysing the short-term market. The dividend payout rate of the sector generally increased in 2023, in which Hailan House / Fuana / Sima clothing / good News Bird / Biyin Lefen corresponded to the current share price dividend yield of 6.1%, 5.6%, 4.6%, 4.3%, 3.4%, respectively, and the stock price has performed well since the date of the announcement. We believe that the targets with abundant cash flow, high dividend and low valuation are still popular in the current market. Textile manufacturing: 1Q24 revenue was repaired as scheduled, and the increase in capacity utilization led to a higher-than-expected profit growth rate. The revenue of 1Q24 textile manufacturing sector is + 23% compared with the same period last year, and the net profit is + 47% compared with the same period last year. The profit growth rate is faster than the income growth rate. We believe that the profit margin is back to higher than expected mainly because of the increase in capacity utilization and foreign exchange contribution. Specifically, the income of 1Q24 Huali Group / Weixing shares / Jiansheng Group respectively compared with the same period last year was + 30%, 15%, 10%, respectively; under the increase in capacity utilization, the gross profit was + 5 ppt, respectively, and the gross profit was 7ppt, respectively; and the net profit of returning home was + 64%, 45%, 112%, respectively. Valuation and recommendations we believe that the brand clothing plate in the base after the 2Q24 has the potential to repair the growth rate, while the leading companies still have the characteristics of high dividend, A-share recommended Highland House, good news bird, Biyin Lefen, Fu Anna and other high dividend and growth targets; Hong Kong stocks continue to be optimistic about Anta Sports, Bosideng, Li Ning and other leading long-term competitiveness. Textile manufacturing plate prosperity is still high, recommend the long-term competitive advantage of the manufacturing leader Shenzhou International, Huali Group, Weixing shares. Risk terminal demand is lower than expected, industry competition intensifies, raw material prices fluctuate and RMB exchange rate changes. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.