Domestic Brands Usher In An Opportunity To Rise, Data Show That More Than 60% Of Listed Companies Achieved "Double Increase" In The First Quarter

As of May 24, the first quarter reports of the 77 listed textile and garment companies in Shanghai, Shenzhen and Hong Kong concerned by the reporter of China Textile News have been disclosed in 2021. The performance report shows that the textile and clothing sector has a strong performance.

Institutions generally pointed out that the textile and clothing industry will continue to decline under the impact of the epidemic in 2020, but the decline rate will be narrowed quarter by quarter, and the performance of the first quarter of 2021 will increase significantly year on year. With the domestic epidemic situation becoming more and more stable, market consumption confidence has recovered, overseas downstream retail sales have recovered, and overseas orders such as Southeast Asia have gradually returned, and the textile and clothing industry has achieved sustained recovery.

Industry prosperity rebounded strongly

The first quarter report of the 77 listed companies in the textile and clothing industry in 2021 shows that the operating income of 51 companies and the net profit attributable to the shareholders of the listed companies both increased, while the operating income of 10 companies and the net profit attributable to the shareholders of the listed companies decreased.

According to the statistics of the increase of net profit attributable to the shareholders of listed companies, the net profit of 60 companies increased, and the net profit of 30 companies increased by more than 100%.

The net profits of Jinhong group, Zhongtai chemical, semma clothing, Jinlun Co., Ltd. and langzi Co., Ltd., which belong to the shareholders of the listed company, increased rapidly, which were 15661.80%, 2521.60%, 1916.78%, 1754.13% and 1209.16%, respectively; Sanfangxiang, Jujie microfiber, Shenzhen textile, Jinfa Rabbi, Tianzhong Jingji, Xinxiang Chemical fiber, Tianchuang fashion, Jiuding new materials, St Zhongrong and Erdos increased by more than 500%, which were 949.13%, 889.15%, 843.09%, 812.72%, 700.52%, 570.00%, 550.01%, 529.81%, 511.10% and 502.46% respectively; The net profits attributable to shareholders of the listed companies increased by more than 150% - 500%, respectively 319.45%, 304.49%, 247.71%, 238.47%, 236.13%, 212.90%, 205.29%, 194.85%, 177.89%, 161.64% and 155.41%, respectively.

According to the decrease rate of net profit belonging to shareholders of listed companies, the net profit of 12 companies decreased. The net profit attributable to the shareholders of the listed company of souyute, Jiaxin silk, St BUSEN, Xinlong holding and sinour decreased by more than 50%, which were 290.48%, 130.92%, 110.93%, 84.42% and 73.53%, respectively.

Shanghai Shenyin Wanguo Securities analysis that, considering that the domestic epidemic situation in January this year is still small-scale repeated, some textile and clothing listed companies are still showing a slow recovery trend. However, on the whole, China has a good control of the epidemic situation, rapid recovery of production, complete supporting of domestic industrial clusters, high-quality and complete industrial chain in the supply of raw materials, flour and auxiliary materials, and suppliers with better delivery ability are more likely to win the favor of brands for a long time. At the same time, with the recovery of market consumption confidence, the prosperity of textile and clothing industry also rebounded.

Top enterprises achieve high growth

Looking further, many head enterprises showed a gratifying growth in a single quarter. The net profit of Jinhong group, which has a strong growth momentum, is 15661.80% belonging to the shareholders of the listed company. The reason for the performance change shows that the sales decreased due to the epidemic situation in the same period of last year, and the sales in this period recovered rapidly.

During the reporting period, the net profit attributable to shareholders of the listed company increased by 2521.60%. The reasons for the performance change showed that the sales volume and selling price of main products increased. According to the annual business plan, the company carries out the operation and management work conscientiously, and continuously makes the main business better and stronger. In the first quarter, a total of 493900 tons of PVC resin, 352200 tons of caustic soda (including self consumption), 148300 tons of viscose fiber (including self consumption), 76700 tons of viscose yarn, 67700 tons of calcium carbide, and 3.649 billion kwh of power generation were produced.

Affected by the epidemic situation in the first half of last year, the business of Semir clothing, which has a low base, recovered in the first quarter of this year. The net profit attributable to shareholders of listed companies increased by 1916.78%.

The net profit attributable to the shareholders of the listed company increased by 1754.13%. The main reason for the performance change was that the company was mainly affected by the Xinguan epidemic in the same period of last year, and the shutdown time of some subsidiaries was long, which led to a large decline in production and sales, and the current period has fully recovered to normal.

In the first quarter, the net profit attributable to the shareholders of the listed company increased by 1209.16%. In addition, the rapid growth of the medical and American business scale of the company also contributed to the continuous improvement of the overall performance of the company. This year, the company plans to seize the development opportunities of the medical beauty industry and accelerate the regional deepening and national distribution of medical beauty business on the basis of consolidating and enhancing the competitiveness of the fashion women's clothing industry.

Domestic brands usher in a rising opportunity

From the perspective of different industries, the upstream textile manufacturing leader has a stable position, and the downstream order demand fluctuates significantly before and after the epidemic. The manufacturing leader can not only withstand the pressure test, but also quickly resume production. Under the trend of streamlining the brand supply chain, the small and medium-sized production capacity has been accelerated.

Home textile listed companies took the lead to return to growth. Leading brands such as fuana, duolove and Mengjie benefited from the early layout of e-commerce business, driving performance growth, and the proportion of sales revenue of e-commerce products exceeded expectations.

Affected by the epidemic situation, clothing listed companies, whose performance was affected by the epidemic, turned the epidemic into opportunity and grew strongly in the first quarter. The hot events in the early stage make the domestic brand usher in the rising opportunity. According to the sales data of tmall platform in March, the transaction amount of Anta sports and Li Ning websites in March continued the trend of high growth year on year, increasing by 50% and 100% respectively.

Haitong Securities analysis shows that clothing, as a category with high online penetration, will benefit from the development of new tools such as live broadcast. The main reason is that the epidemic peak of China has passed, and the stores that have been closed in the early stage have been restarted, and the impact of the epidemic situation has gradually weakened; Clothing enterprises actively layout online channels, launch small programs, micro mall and other tools to improve consumer stickiness. At the same time, the trend of the global epidemic has accelerated the reshuffle of the industry. The high-quality textile leading enterprises with strong performance toughness recover quickly and grow sustainably in the long term.