Over 70% Loss In The First Half Of The Year

As of August 21, 2020, among the more than 100 listed textile and garment companies in Shanghai, Shenzhen and Hong Kong, 37 of them have published performance forecast or performance express. Among them, 9 companies are expected to have good performance, including 5 companies with the same upward trend, 3 companies with an increase in advance, and 1 company that turns losses into profits. The total proportion of companies reporting good news is about 24%; 26 enterprises are in advance of loss, including 13 companies with the same direction of decline, 12 companies with loss and 1 company with loss in advance, with a total proportion of about 76%. 　

Guoxin Securities said in the research report that the epidemic has caused extensive and serious impact on the industry in the short term. There are certain differences in the impact of different sectors, and the differentiation between specific stocks is obvious. This impact is an opportunity for companies with stable operation and outstanding competitiveness to further open up their competitive position, and also a good opportunity to significantly underestimate the valuation.

Stable operation of head Enterprises 　

As for the reasons for the performance increase in the first half of the year, Bangjie, Lianfa, Guangwei Fucai, Jiuding Xincai, Jinfa Technology There are different explanations for.

During the reporting period, the net profit attributable to shareholders of listed companies increased by 200% ~ 280% compared with the same period of last year Bangjie Co., Ltd During the reporting period, the company continued to optimize the product structure, improve production efficiency and management level, and the price of raw materials decreased, which led to a rise in gross profit margin over the same period of last year; meanwhile, the credit impairment loss of receivables decreased compared with the same period of last year, and investment income and government subsidies increased compared with the same period of last year.

Lianfa, Jiuding new material A more brief description of the changes in performance. During the reporting period, the impact of non recurring profit and loss on net profit is expected to be between 162 million yuan and 167 million yuan, which has a great impact on the company's performance, mainly due to changes in the fair value of trading financial assets. During the reporting period, the net profit attributable to shareholders of listed companies increased by 45% - 55% compared with the same period of last year. Jiuding new material increased the company's profit due to the increase of business income, the influence of exchange rate and the increase of tax rebate rate. Secondly, the company transferred some idle materials to revitalize the assets and increase the company's profits through technical upgrading. Net profit attributable to shareholders of listed companies is expected to increase by 74% - 118% over the same period of last year.

Top enterprises with pre increased performance in the current period Guangwei composite The business of carbon fiber (including fabric) of military and civilian products maintained a stable growth, with an increase of about 36% compared with the same period of last year; the carbon beam business of wind power was delayed due to the spread of the epidemic, and the revenue increased slightly by 4% compared with the same period of last year; the company's overall operating revenue increased by about 20% over the same period of last year. The net profit attributable to shareholders of listed companies is expected to increase by 10% - 15% over the same period of last year.

Golden hair technology In the first half of 2020, the gross profit rate of modified plastics products increased steadily, and the sales volume of fully biodegradable plastics and special engineering plastics increased steadily, and the operating profit increased. At the same time, the company increased the production line of anti epidemic materials and products such as melt blown material, melt blown cloth and mask, which played a positive role in the company's performance.

Clothing sector performance under pressure

Among the companies that have released performance loss in advance, several companies explained that the macro level reason is that the company's business has been greatly affected by the spread of Xinguan epidemic, global economic downturn, industry regulation and consumption restraint since 2020.

Although the recovery trend of downstream demand was obvious in the second quarter, the overstocked social inventory was still at a high level in the early stage of returning to work. In particular, the clothing sector, SEMAR clothing, landsie, Sanfu outdoor, Pathfinder, souyute, shinur, St BUSEN, and anel Such as the obvious decline in revenue. Among them, the net profits attributable to shareholders of St BUSEN, Sanfu outdoor and anel decreased by 780% - 667%, 511.74% - 374.49% and 131.97% - 123.09% respectively over the same period of last year.

Strong performance of children's clothing business Samma clothing During the reporting period, the company's overseas business losses increased due to the impact of Xinguan epidemic. The consumption business of children's wear of aner was greatly affected, and the half year business income decreased year on year; in 2019, the company expanded more stores, and the rent and management fees of the company's stores increased, which were relatively rigid, which further affected the company's net profit. At present, the company accelerates the adjustment of sales channels and sales methods, and reduces non operating related expenses. 　

Langzi Co., Ltd In the second quarter, the short-term loss of women's clothing business has been alleviated by increasing online marketing efforts and efforts to reduce the adverse factors of offline terminal sales, and comprehensively resume the medical beauty business. 　　

Men's wear Shinur, St BUSEN The sales performance of Direct stores and distributors is poor. In addition, St BUSEN, according to the latest progress of the litigation, reversed estimated liabilities of about 10.73 million yuan.

It is worth noting that although the overall clothing industry has declined to a large extent, since the second quarter of this year, the e-commerce sales of the clothing industry have grown strongly. In the second quarter of this year, the total turnover of shoes, clothing, bags and bags of Taobao tmall.com increased by 38.78% year-on-year, and the year-on-year growth in June was as high as 45.6%.

Looking forward to the future, many research institutions believe that the clothing industry will usher in a turning point. Galaxy Securities Although China's economic growth has slowed down, young people still believe in the values of realizing their dreams through their own efforts, and enjoy the pleasure and security brought about by consumption, the research paper said. From the perspective of industrial development cycle, the growth rate of children's wear and sports apparel will be higher in the future.

Practice internal skill to achieve pre increase

Among the listed companies with an increase in semi annual reports, the reasons why the company is expected to achieve year-on-year turnaround in the reporting period are discussed, *St medium With the completion of the company's restructuring in 2019, the company's asset light operation during the reporting period has significantly reduced the related costs compared with the same period, which has a positive impact on the company's performance. During the reporting period, the company increased the collection of receivables, which increased the company's profit to a certain extent.

The epidemic has also accelerated the development of the new retail mode, putting forward higher requirements for the company's online and offline integration. In this trend, brands that attach importance to Omni channel layout and efficient member management will benefit. In the first half of 2020, the company's response to the impact of the epidemic situation and the overall performance of the company in the first half of 2020 are better than the original expectations. In the case of the establishment of a franchise store, the impact of the company's online stores on the prevention and control of the epidemic situation is to help the franchisees to set up online stores. Second, on the basis of Direct stores, social e-commerce, direct micro mall and other online channels are implanted, and through the means of live delivery with goods, community drainage, etc., to build a full staff marketing platform and promote performance improvement. Third, through the adjustment of commodity structure, pricing strategy and other measures to increase e-commerce channel operation, e-commerce channel sales have been greatly improved.

Zhongtai securities According to the research report, the textile manufacturing sector was impacted by the epidemic situation at home and abroad in the short term, and the pressure in the second quarter increased month on month. However, in the long run, the epidemic has also accelerated the clearance of the industry, and the advantages of leading enterprises in the industry have been highlighted, and the market share is expected to increase after the epidemic.