textile and garment industry: textile and garment exports continue to decline short-term pressure still exists

this report guide:
In January-February of 23 years, China's textile and clothing exports were -18.5% YoY, a decline of more than December of 22 years. At present, overseas brands are still in the de-stocking stage, waiting for the end of 23Q2 to usher in the inflection point of orders.
Abstract:
Investment advice: 1) Brand clothing: undervalued brand supplement market is expected to continue to interpret, sportswear continued correction, gradually into the layout period. Apparel consumption has continued to recover since January 2023, with business men's wear performing better, and given the low base of 22Q2, we expect the subsequent brand end to accelerate repair. Recent strong share price performance of men's clothing targets, we believe that the undervalued brand catch-up market is expected to continue, continue to recommend men's brand news birds (12 times in 2023), Hailan House (10 times in 2023), Biyin Lefen (18 times in 2023). At the same time last week H-share sportswear followed the Hong Kong stock market continued to pull back, valuation gradually become reasonable, recommended Li Ning, Anta Sports, Tebu International. In addition, some women's clothing brands in the outbreak seriously damaged, 23 years of performance is expected to significantly improve, recommended low valuation high performance elastic women's clothing target Golis (13 times in 2023, performance growth rate of about 300 percent), the beneficiary of the target Jinhong Group. 2) Home textiles: wedding demand release and real estate expected repair, recommended high-dividend home textile plate. After the epidemic wedding demand is expected to break out, overlay real estate is expected to repair is expected to drive the valuation of the home textile sector to improve, recommended low valuation of high dividends of home textile leader Luolai life, the benefit of the target Fuana. 3) Manufacturing: The fundamental inflection point will be present, looking forward to the improvement of manufacturing leading orders. The textile industry chain to the dark moment has passed, the terminal recovery is expected to enhance the confidence of downstream brands, enhance the willingness to place orders, we expect domestic demand orders are expected to take the lead in recovery, external demand orders are expected to improve at the end of Q2, the textile industry chain inflection point is gradually approaching. Recommended capacity release of undervalued color yarn leader Fuchun dyeing and weaving, new materials business put into production of security gloves leader Henghui security, as well as PA66 civil spinning leader Taihua new material.
Industry News: 1) January-February China's textile and clothing exports expanded: January-February 2023 China's textile and clothing exports YoY -18.5%, compared with December 2022 decline further expanded, of which textile/clothing exports YoY -22.4%/-14.7%. 2) Taiwan enterprises textile clothing manufacturers in January-February income pressure:
From January to February 2023, the income of Fengtai/Yue Yuan/Zhi Qiang/Yu Qi was-8%/-16%/- 17%/+ 18% year on year. Among them, the income decline of Fengtai, Yue Yuan and Zhi Qiang was further expanded compared with December 22. Ruhong/Juyang's income was-36%/-7% year on year, mainly due to the high downstream inventory and the pressure on orders.
Market review: March 6-March 10 CSI 300 Index, Shanghai Composite Index, Shenzhen Composite Index, ChiNext Index fell 3.96 percent, down 2.95 percent, down 3.45 percent, down 2.15 percent, SW Textile Manufacturing, SW Textile and Apparel, Apparel Home Textile sector fell 4.40 percent, down 3.76 percent, down 3.92 percent, respectively. A- share textile manufacturing rose first to Jinchun shares (-0.23 per cent), while clothing home textiles rose first to Biyin Lefin (3.38 per cent). From March 6 to March 10, the Hang Seng non-essential consumer index fell 7.75 per cent, textiles and clothing Hong Kong (CITIC) fell 8.61 per cent, the Hang Seng index fell 6.07 per cent, and H-share textiles rose first by Giordanu International (7.92 per cent).
Risk factors: less than expected recovery in end-consumer willingness, risk of global inflation
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