The performance of listed companies in textile and clothing in the first half of 2010 is not bad (below)

Economic recovery textile recovery

With the increase in exports and the expansion of domestic demand this year, the entire terminal demand market for the textile and apparel industry is relatively good, which has improved the performance of the industry.

According to statistics, there are 69 listed companies in the apparel and textile industry, and 60% of key companies’ net profit growth exceeds 30%. Some analysts believe that the reason for the rapid recovery of the industry is that the overall performance is good. The reason is that last year's industry was affected by the financial crisis. Its performance was poor and there was a "low base", but this year, the increase in exports and the expansion of domestic demand. The demand for the entire terminal market is good, so the performance of the textile and apparel industry has been improved.

In this regard, the author selected several representative textile and apparel companies in the industry for analysis.

Lutai Textile Co., Ltd. is a listed company of domestic A and B shares. Among them, the company's A-share market Lu Tai A mid-year report shows that in the first half of 2010 operating income of 2.247 billion yuan, an increase of 21.95%, operating profit of 444 million yuan, an increase of 50.65%, a net profit of 367 million yuan, year-on-year Growth of 39.2%, to achieve earnings per share of 0.37 yuan. According to analyst Guo Haiyan of CICC, the net profit of the company can achieve nearly 40% year-on-year growth. The main reason is that the price of the product has risen under the background of rising cotton prices, and its strong cotton reserves have reduced costs. , brought about a good increase in gross margins. In particular, with the launch of the 10 million meters jacquard women's high-grade fabric project, the shirt fabric segment revenue increased by 24%, and the gross profit rate improved by 7.5 percentage points from the same period of last year to 34.8%.

Youngor's revenue for the first half of the year was 5.352 billion yuan, down 7% year-on-year; operating profit and parent company's net profit were 742 million yuan and 581 million yuan, respectively, a year-on-year drop of 57% and 59%, and a per-share return of 0.26 yuan. The company's mid-year report shows that the first half of the textile and apparel segment revenue and net profit were 3.6 billion yuan and 450 million yuan, respectively, an increase of 7% and 21%. CITIC Securities analyzed that the increase in net profit of domestic apparel apparel sales was more than 40%, but apparel export revenue fell by more than 5% year-on-year, and gross profit margin also declined. Operation was still lower than expected.

CICC's analysis believes that Youngor's apparel business has achieved remarkable results in the domestic market, which has achieved remarkable performance through strengthening brand building, increasing product added value, optimizing store layout and adjusting supply chain. At the same time, the company has continuously introduced new brands of new technologies, new technologies and the market has responded well; the company has actively optimized and adjusted the layout of store products and improved its efficiency. It is understood that more than 80% of the company's stores are self-operated stores, which can better control terminal retail sales.

The Seppuri reported in the August 18 report that the company achieved operating income of RMB 970 million from January to June, an increase of 10.7% year-on-year, operating profit growth of 40.7%, and total profit growth of 36.2%. The report also showed that in mid-2010, the company had 3,250 specialty stores (hall counters), of which 299 directly-operated stores, direct-operated stores increased by 79 compared to the end of 2009; franchise stores 2951, franchise stores than the end of 2009 Net reduction of 78. We can see in the mid-year report of Septwolves 2009 that the number of franchised stores (office halls) in the company is 2,957, which is 188 more than at the end of 2008.

In this regard, industry analysts believe that in the global economic crisis, especially whether the Chinese economy will face a double bottom, the cost of the garment industry continues to rise, seven wolves and Other clothing and textile companies, are facing greater competition pressure. The rising rents in the shops have increased the burden on the stores. Therefore, the seven wolves slowed down the pace of “staking races” and focused on the profitability of single stores.

Let's look at the "big brother" Metersbonwe in the field of domestic leisure wear. Midland Apparel's mid-year report showed that interim results fell 83%, but the second quarter improved significantly. In the first half of 2010, the company realized operating income of 2.542 billion yuan, a year-on-year increase of 39%; operating profit and net profit attributable to parent companies were 6253 and 40.34 million yuan, respectively, a year-on-year decrease of 58% and 83% (including a non-compliance of 114 million yuan in the first half of 2009 Operating profit factor).

According to the analysis of Guojin Securities, the composition of sub-channels shows that, in the second half of the year, the company’s aggressive expansion of direct-operated stores achieved a 53% year-on-year growth in sales in the first half of the year, while franchise sales increased by 28% year-on-year. %; According to the brand, Smithland's main brand has grown steadily by 35%, and the urban brand is gradually on the right track. In the first half of the year, it achieved sales revenue of 243 million yuan, a year-on-year increase of 112%.

According to another analysis, the proportion of the company’s direct sales stores led to a large increase in sales expenses. During the reporting period, the company's sales expenses increased by 53% over the same period of last year, and the cost rate increased by 3.23 percentage points to 34.55%. This was mainly due to the fact that the rental expenses, staff costs and decoration expenses of direct-operated stores increased with the expansion of the size of the stores. The management fee rate remained basically stable.

The Pathfinder was one of the first companies to land on the GEM last year. The company achieved operating income of RMB 154 million from January to June 2010, an increase of 34% year-on-year; total profit of RMB 29.99 million, a year-on-year increase of 17.5%; The net profit of the company’s shareholders was 25.26 million yuan, a year-on-year increase of 34%. In the first half of the year, the company’s revenue increased by 34%, of which outdoor apparel accounted for 62% of revenue, outdoor footwear accounted for 23% of revenue, outdoor equipment accounted for 15% of revenue, and clothing increased significantly. In addition, according to reports, in the first half of this year, the company opened 71 new stores, including 27 directly-operated stores and 44 franchised stores.