Brand Clothing Enterprises Are Heading Against The Wind.

In June, most companies have disclosed the first half of 2008, including a number of small and medium-sized textile and garment enterprises.

Under the heavy pressure of 7 points of exchange rate rise, 20% increase in labor cost, 2 drawdown of export rebates and 3% to 5% of production data in 2007, the development of textile enterprises this year is particularly concerned.

From the first half performance forecast and quarterly report disclosed by the listed companies in the small and medium-sized plate textile industry, many textile enterprises are facing the first or the continuous losses in the face of the sharp rise in production costs, but there are also some enterprises' performance continues to grow significantly, and the polarization trend of textile enterprises is intensifying.

The characteristics of small and medium sized listed companies may also exist in the entire textile industry.

Export enterprises' growth rate has dropped significantly.

There are 17 textile and garment enterprises in small and medium-sized plates, and some of them are mainly exported. Since the beginning of this year, the gross profit margins and profit growth rates of these export-oriented enterprises have decreased significantly, such as the 002034 shares, Shandong Ruyi (002193, stock bar) and so on.

In addition, in the main board of the textile industry listed companies, this phenomenon also exists, such as Golden Eagle shares (600232, stock bar), black peony (600510, stock bar), Jiangsu sainty (600287, stock bar) and so on.

Some enterprises suffered a continuous loss or loss.

Oriental Securities Research Report shows that the textile industry's export pressure is becoming increasingly serious.

Statistics show that in the first quarter of this year, China's textile and clothing exports totaled 36 billion 436 million US dollars, up 17.70% over the same period last year, continuing the downward trend of growth since 2007.

Domestic enterprises maintain good growth

In contrast to export oriented textile enterprises, a number of listed companies, which are mainly domestic sales, have certain brand and channel foundation, or have relative monopoly advantages in a certain subdivision area, have maintained a good growth momentum in gross profit margin and profit under the background of internal and external difficulties.

If Weixing shares (002003, stock bar), net profit attributable to parent owners in the first half of this year will grow by 30%-50% over the same period.

Gross profit margin of buttons, zippers and other garment accessories products increased by 0.77-2.78 percentage points in 2007.

There are also similar shares (002070, stock bar).

Data show that in the first quarter of this year, the total retail sales of consumer goods increased by 20.6% compared with the same period last year, and the total retail sales of clothing, shoes and hats and needles and textiles increased by 28.59% over the same period last year, which surpassed the average level of the whole society.

The proportion of domestic demand in textile industry has increased from 66% in 2003 to 75% in 2007.

The industry believes that domestic demand has become the main support for the steady growth of the domestic textile industry, and it is also one of the important factors for the industry to resist other negative risks in the next few years.

Brand clothing enterprises hold "golden key"

In the face of intensified competition, clothing companies with well-known brands are like "golden keys".

In the first quarter of this year, the total revenue of the news bird (002154, stock bar) increased by 38%, and net profit increased 61% year-on-year.

The company expects the net profit attributable to parent company owners in the first half of this year increased by 60% to 90%.

The performance of the seven wolves (002029, stock bar) increased by 185% in the first quarter, which is expected to increase by 100%-150% over the first half of the year.

Li Xin, chief analyst of CITIC Securities (600030, stock bar) textile and garment industry, said that the domestic apparel retailing industry is still booming, and the improvement of clothing retail prices can be expected. This will also become a driving force for the continuous growth of garment enterprises.

According to the data, in the first quarter of this year, domestic clothing consumption continued to maintain steady growth, achieving wholesale and retail sales of 214 billion 600 million yuan, an increase of 20% over the same period, with retail sales reaching 103 billion 200 million yuan, an increase of 24% over the same period last year, which is 3.7 percentage points higher than the growth rate of retail sales of social consumer goods.

At the same time, joint securities analyst Wang Rong also believes that the current clothing brand operation has become a new hot spot, and brand clothing enterprises have shown very high growth.