Market Review: This week, the CSI 300 index fell 2.97 per cent, the GEM index fell 6.12 per cent, and the textile and apparel industry index (CITIC) fell 0.83 per cent, outperforming the CSI 300 and GEM indices, with the textile manufacturing sector (CITIC) down 1.67 per cent and the branded apparel sector (CITIC) down 0.05 per cent. In terms of individual stocks, we covered Zhejiang Nature, Disu Fashion and Zhou Dasheng, etc. achieved positive returns.

Overseas highlights:(1) Victoria Beckham Victoria Beckham to achieve profitability. (2) "BANANAUNDER" overseas first store in Singapore. (3) Amer Sports, a subsidiary of Anta Sports Joint Venture, has applied for a listing in the United States to raise $0.1 billion.

Industry and Company Important Information:(1) Pereya: As of December 31, 2023, the Company has repurchased 395,980 shares of the Company through centralized bidding, accounting for 0.0998 percent of the Company's current total share capital.

(2) Bertany: As of December 31, 2023, the Company has repurchased 1,539,500 shares of the Company through a special securities account for share repurchase by means of a centralized bidding transaction, accounting for 0.3634 of the Company's current total share capital. (3) Aimeike: The company expects the net profit attributable to shareholders of listed companies to be 1.81 billion yuan to 1.9 billion yuan in 2023, an increase of 43% to 50% year-on-year.

this week's proposed plate combination: Pereya, Lao Fengxiang, Happy Bird, Hailan House and Huali Group. Last week's portfolio performance: Pereya-6%, Lao Fengxiang 1%, Happy Bird 2%, Hailan House 3% and Huali Group-2%.

the market performance was weak in the first week of 2024. the textile and garment industry index as a whole outperformed the Shanghai and Shenzhen 300 and gem indexes. the top gainers in the sector were mainly the manufacturing and retail targets of the outdoor sports industry, as well as some stocks with high dividend labels, and the consumer stocks with heavy institutional positions represented by the leading sports apparel of hong kong stocks, which fell significantly this week due to the influence of market sentiment. In the relatively sluggish market environment at this stage, on the one hand, we believe that the configuration will continue to look for sub-sector leaders with resilient or better-than-expected performance from the bottom up. On the other hand, the current valuation of Baima in each sector has fully reflected The market's cautious expectations for optional consumption, if the economy can further stabilize and rebound in the future, it will be good for the optional consumption sector as a whole. In the short term, we believe that there are three main directions in the configuration:(1) operating is expected to maintain a high degree of business climate of individual stocks, we are still optimistic about the high-end men's wear and gold jewelry two sub-sectors. Related companies focus on the recommendation of the bird (002154, buy), Biyin Lefen (002832, buy), Lao Fengxiang (600612, buy), Chao Hongji (002345, increased holdings) and Zhou Dasheng (002867, increased holdings). (2) Under the background of weak economic recovery and decline in the overall expected return rate of the market, companies with growth resilience and high historical dividend return rate in the medium and long term still suggest to focus on, such as Hailan House (600398, buy), Bosideng (03998, buy), Senma Apparel (002563, buy), Fuana (002327, increase) and Tao Bo (06110, increase), etc. (3) Textile manufacturing industry with the downstream overseas consumer giants to inventory gradually ended, has entered the left layout stage, individual stocks mainly recommended Huali Group (300979, buy), Shenzhou International (02313, buy) and Weixing shares (002003, buy), etc., recommended to pay attention to New Australia shares (603889, unrated). Regarding the medium-and long-term allocation of the industry, we maintain our previous view: the valuation and cost-effectiveness of sports apparel, cosmetics, medical beauty and other racetracks, especially the sports apparel sector, are gradually emerging. We suggest to actively allocate leaders with real medium-and long-term core competitiveness, and recommend Anta Sports (02020, buy), Perrier (603605, buy), Li Ning (02331, buy), Giant Biology (02367, buy) and Aimei (300896, buy), while focusing on Beitani (300957, buy), Tebu International (01368, buy), Huaxi Bio (688363, increased holdings), etc.

risk tips

economic slowdown on the domestic retail terminal pressure, trade friction, changes in the overseas investment environment and RMB exchange rate fluctuations.