Main points
Market review: This week (2024.05.20-2024.05.24, the same below), A-share SW textile and clothing industry index fell 3.21%, light manufacturing industry fell 5.71%, while Shanghai Shenzhen 300 fell 2.08%, and Shanghai Stock Exchange Index fell 2.07%. Textile and clothing and light industry manufacturing ranked 14th and 31st among the 31 first tier industries of Shenwan.
1) Textile and clothing: clothing brand 618 has greatly promoted the performance, and the performance of Amafin Sports has grown steadily in 24Q1.
Tmall: clothing brand 618 has greatly promoted the performance, and shoes and shoes brands have made outstanding deals. On May 20, 3225 clothing brands in Tmall 618 clothing industry opened for sale for 4 hours, exceeding the whole day of the previous year. The turnover of 1377 men's wear brands exceeded that of the whole day last year. The turnover growth rate of 377 women's wear brands exceeded 100% year on year.
The turnover of 140 shoe brands exceeded that of the whole day last year, and the turnover of many brands exceeded 10 million yuan.
Diaoyin: The demand for clothing tends to be polarized, and Diaoyin 618 sunscreen and down sales are eye-catching. On May 25, Diaoyin E-commerce opened 618 pre-sales. In the list of the top 15 live broadcast rooms of the 618 Good Things Festival, released by Tiao Yin this time, the popularity of sunscreen clothes soared with the temperature, and Jiaoxia, which focuses on "lightweight outdoor", topped the list, with more than 300000 pieces of popular sunscreen clothes sold. In addition, women's wear brands such as Sancai, Evley, Inman, etc. also occupy the list. The brand Gaofan, which focuses on high-end goose down clothing, is hot in the off-season, ranking second in the 618 Good Food Festival of Diaoyin Clothing.
Amafin Sports' performance grew steadily in 24Q1, and the store of Archaeopteryx continued to expand.
On May 22, Amer Sports, the parent company of Archaeopteryx, announced its financial report for the first quarter of 2024. In 24Q1, the company realized an operating revenue of 1.183 billion yuan, up 13% year on year; The adjusted operating profit margin was 11%, compared with 13.4% in the same period of the previous year; The net profit was $7 million, compared with $19 million in the same period last year. The revenue growth in the first quarter was mainly due to the 44% year-on-year growth of the company's outdoor functional clothing business. The main driving force of its outdoor functional clothing sales was the Archaeopteryx brand. In terms of brands, 1) Archaeopteryx: in terms of store expansion, the new store of Archaeopteryx achieved double-digit expansion in 24Q1, and still achieved comprehensive channel growth under the high benchmark of 23Q1. Archaeopteryx has gained extensive growth in all regions, led by the Asia Pacific region and the Americas, followed by Greater China, Europe, the Middle East and Africa. 2) Salomon: Thanks to Salomon's shoes and clothing business, led by the Asia Pacific region and Greater China region, achieving a mid ten digit growth, the company's mountain outdoor clothing and equipment business revenue increased by 6% year-on-year to $400 million. 3) Weir Sheng: The revenue of "ball and racket equipment business", the third largest segment of Yamafan Sports, decreased by 14% year-on-year to 273 million dollars, mainly because Weir Sheng continues to face challenges in the core market.
In terms of channels, 24Q1 Amafin Sports DTC channel revenue was $489 million, a year-on-year increase of 41%, and DTC channel achieved double-digit growth in all regions; In the outdoor functional clothing business, DTC channel achieved 46% growth, including 36% growth in comprehensive channels. However, the revenue of the wholesale channel decreased by 1% year-on-year to $694 million, and the wholesale channel of outdoor functional clothing business realized a 40% growth.
In terms of regions, the revenue of 24Q1 Amafin Sports Americas region was about 410 million dollars, unchanged from the same period last year. The growth of outdoor functional clothing business in this region was offset by the decline of ball games and racket equipment business; The revenue of EMEA is 359 million dollars 1% year-on-year growth; The revenue of Greater China and the Asia Pacific region reached US $310 million and US $104 million respectively, up 51% and 34% year on year.
In the 2024 financial year outlook, Amafin Sports predicted that the company's revenue growth rate would remain in the middle of the ten digit range, the revenue of outdoor functional clothing business grew by more than 25% year-on-year, the revenue of mountain outdoor clothing and equipment business grew in the middle to the highest single digit, and the revenue of ball and racket equipment business grew in the low to the middle single digit. We believe that the overall performance of Amafin Sports, driven by Archaeopteryx, still exceeded expectations and is expected to continue its steady growth trend in 2024.
2) Light industry manufacturing: Tmall 618 home decoration, household appliances and home appliance brands have sold for more than 100 million yuan, with strong household demand.
Tmall 618 greatly promoted the turnover of 23 home decoration, household appliances and home appliance brands in 4 hours to over 100 million. On May 20, Tmall 618 was launched for 4 hours, and the brand of home appliances and home appliances grew explosively. 23 brands such as Midea, Dyson, Haier, Hisense, etc. had turnover of more than 100 million yuan, and 119 single products had turnover of more than 10 million yuan. As of 15:00 on May 21, the ranking list of 618 Tmall brands enjoying life shows that Midea, Haier and Gree lead the top three brands in the list of household appliances; Midea, Dyson and Pursuit lead the top three brands of small household appliances. Genji Muyu, Sophia and Lin's Home Furnishings lead the top three home decoration brands. The cutting-edge brand Yaduo Planet has a brilliant performance, and ranks among the top three household brands along with Luolai Home Textile and Mercury Home Textile. In the ranking list of Taobao's home decoration, Sophia Home Shop, Half House, and one American benchmark store take the top three. In 618 in 2024, Tmall will add 200 million special subsidies to trade in the old for the new, effectively stimulating the enthusiasm of consumers to trade in the old for the new. Four hours after the opening, the number of old for new orders on Tmall increased by more than 710% year on year.
Gujia Home Furnishing (603816. SH): The Huimin Renewal Project will be launched in March 2024, and will be heavily upgraded in May, with more preferential policies to further improve the product portfolio. For example, Gujia's 698 package winning the championship has realized category expansion, becoming the first package series covering clothes, cabinets and doors in the industry. In addition, the 998 package of winning wardrobe is also the key content of this upgrade. The package can realize Walden series | electrostatic powder spraying 998 yuan/m2, smart life series | super skin friendly PET998 yuan/m2, ENF environmental protection No. 7 | solid wood multilayer board 998 yuan/m2.
Bull Group (603195. SH): According to the customs entry record on May 21, 2024, energy storage business, as an important layout of the company in the new energy field, is still in the initial stage of development. In the future, it will conform to the trend of energy structure reform and have a broad market space. 23H1, the company's household energy storage products have been tested in overseas markets, established special organizations and subsidiaries, actively prepared for business and talent localization, and orderly promoted the construction of channels and service systems. In 2024, the company will comprehensively layout the household storage ecology, and promote the channel and brand construction in the developed country market; At the same time, further develop the iterative domestic industrial and commercial energy storage product line, carry out the exploration and verification of business model, accelerate the establishment of professional channel capacity for industrial and commercial energy storage, and help businesses achieve rapid breakthroughs.
3) Cross border e-commerce: Huakai Yibai continues to improve its global layout, and Temu has passed the certification of Brazil's tax preference plan.
Huakai Yibai plans to acquire 100% equity of Tongtuo Technology to improve the company's global layout. In December 2023, Huakai Yibai said that it planned to acquire 100% equity of Tongtuo Technology and all operational assets related to its main business in cash. On May 21, the company issued the latest announcement on the signing of the Equity Purchase Agreement, indicating that it would purchase Tongtuo Technology with 700 million cash. Before this transaction, the company did not hold the equity of Tongtuo; After the completion of this transaction, Tongtuo will become a wholly-owned subsidiary of the company, and the company will directly hold 100.00% equity of Tongtuo and all operational assets related to its main business (including but not limited to trademarks, patents, stores, inventory assets, etc.). This restructuring helps the company focus on its main business, expand its business scale by taking advantage of the golden development period, and enhance its comprehensive competitiveness and industry position; Huakai Yibai and the target company are complementary and deeply integrated, giving full play to synergy and improving the global layout.
Temu is certified by the Brazilian Tax Concession Program. According to the news on the website of the Brazilian Federal Tax Office on Monday, Temu has passed the certification of a tax preference plan of the Brazilian government, and the goods below $50 are exempt from import fees. According to local media reports, Temu has been preparing for entering the Brazilian market for several months.
Investment advice
Suggested attention: textile and clothing (A-share): Baoxiniao, Bienlefen, Home of Hailan, Weixing, Huali Group, Jinhong Group, Taihua New Material, Golis, Sanfu Outdoor, etc; Textile and clothing (Hong Kong shares): Anta, Li Ning, Bosideng, etc. Light industrial manufacturing: Oupai Home, Zhibang Home, Craftsmanship Home, Gujia Home, Mousse, Bull Group, Sun Paper, Zhejiang Nature, etc. Cross border e-commerce: Pinduoduo (US stock), Huakai Yibai, Savi Times, Zhiou Technology, etc.
Risk warning
Price fluctuation of raw materials; Weak terminal consumption; Industry policy change risk; Market competition intensifies risks, etc.
