Analyst Pin-board Textile and garment industry – 2022 outlook: Bouncing back after the lockdown
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· Resuming production after 3Q2021 disruptions, we expect that 2022 textile and garment export value will recover strongly, driven by a strong pent-up demand after lockdown in many developed countries. · We expect to see high growth for most companies in the industry, but we prefer the ones which completed new factories or have products made from eco-friendly materials. · The market price of textile and garment stocks was adjusted down recently after the strong price performance. We believe this is a good opportunity to accumulate stocks that have clear growth potential in the future. We recommend buying STK with a target price of VND 67,500/share (+21%) due to bright recycled yarn prospects and the contribution of Unitex factory from 2023. With regards to MSH, we have an accumulate rating at VND 90,000 (+18%) driven by Song Hong 10 factory to boost NPAT growth in FY22-23. In contrast, we recommend selling TCM at VND 43,000 (-41%) mainly due to overvaluation. |
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