Textile And Apparel: Clothing Or Offline Outlets Are Expected To Resume Operation At The End Of February In XTEP.

In February 18th, XTEP International announced that the remaining retail outlets and production lines will be fully restored at the end of February 2020, except for retail outlets in Hubei. As of 2019H1, XTEP international has 6312 stores in mainland China and overseas. According to the statistics of Baidu map, there are 256 XTEP stores in Hubei, accounting for around 4%. That is to say, at the end of February, more than 95% of XTEP stores will be fully restored. Because XTEP international stores are located in 31 provinces all over the country, the stores are rich in structure (shopping centers, street shops, etc.), which have certain representative significance. In the light of our recent tracking, we believe that the channel of brand clothing line is expected to usher in the turning point in March, and continue to suggest that investors should pay close attention to the leading companies such as Anta sports, Semir clothing, Lining and Hai Lan.

In addition, under the influence of the epidemic, brand clothing enterprises have increased the penetration and marketing of online and private sector traffic, digitalized transformation through the new retail mode, and made up for the impact of the epidemic on the brand apparel enterprises in the short term. In the medium and long term, the brand clothing promotes the transformation of the new retail mode, which is good for the company. For long-term development.

In recent years, many brand clothing enterprises continue to explore new retail business mode. During the epidemic period, the brand clothing increased the promotion of full staff sales, took stores as a unit, supported by individuals, carried out online and offline grid management, and promoted APP, WeChat, live broadcast and other channel sales to achieve more sales situation integration. For example, companies such as Pacific bird and brisein are actively integrating more forms of sales mode, using online private sector traffic such as WeChat to conduct online sales, further enhancing the penetration and structure of brand online and new retail sectors, and mitigate the impact of offline stores in the short term. Within the enterprise, we must adjust the investment plan and cost plan strictly by controlling costs, adjust the pace of cash expenditure, and rationally control and manage financial services. Thus, in the difficult epidemic period, we think that the long-term advantages of the company with good operation capability can be better reflected.

Here, we would like to reiterate our view and suggest that investors continue to suggest that we should pay close attention to the quality oversold faucets, high-quality manufacturing leaders and electricity suppliers. (after the epidemic affected the elastic table)

High quality and super drop leader: Anta sports, Semir dress, Lining, Hai Lan's home

Overseas leading manufacturers of quality OEM with capacity layout: Shenzhou International and Jen Sheng Group

Electricity supplier sub sector: Antarctic electricity supplier, Kai Run shares

Epidemic related concept stocks: shares of North bond

Risk warning: terminal demand is weak, inventory risk, industry adjustment is not up to expectations; industry and company net interest rate fall risk, cash flow pressure risk; epidemic impact aggravate risk.