Export Earnings Sample: Huafeng Spandex Full Load Start Up

The 106 Canton Fair Textile and clothing export Turning around, the demand for gradual recovery in Europe and America has just been revealed. 002064.SZ has immediately pulled out two trading stops, and Yantai spandex (002254.SZ) has been rising for several consecutive days. As of November 10th, including 3, 4 days of trading, Huafeng spandex increased by 25.18%, and Yantai spandex also reached 24.96%. Although the share price has dropped since the beginning of this week, after 3 months of high level trading, the trend of Huafeng spandex and Yantai spandex has been established again.

"Further improvement of textile and garment exports will boost upstream chemical fiber and textile industry." Chemical Demand, the textile chemicals industry Huafeng spandex and Yantai spandex will benefit. " Qiu Wei, a Guoxin security company in the third phase of Canton Fair, mainly based on textiles and clothing, was investigated.

In November 5th, reporters learned from Huafeng spandex stakeholders that the operating rate of the company has been restored to full load and basically no inventory.

A researcher who has studied Huafeng spandex said that "at the beginning of February this year, the operating rate of our research was only 50%-60%. By May, the operating rate of the spandex increased to 90%, and at present, the operation rate of the 48 production lines has reached 100%."

It is understood that the effective production capacity of the company is about 40 thousand tons this year. In the first half of the year, spandex production is about 14 thousand tons. "If the second half of the year keeps 90% of the operating rate, the output will reach 34 thousand tons a year, which will increase by about 44% compared with last year".

In November 5th, Yantai spandex executives also confirmed to reporters that the spandex operating rate was 100% this year. In addition to a production line due to maintenance and downtime, the remaining dozens were running at full capacity for 24 hours, and "the whole industry is so, at present, there is not much stock in the company".

According to the source, the price of spandex fell significantly during the fourth quarter of last year. Sales improved at the beginning of this year, and grew rapidly in the three quarter. "The four seasons are expected to end the downward trend and turn to positive growth over the same period of the year."

In May this year, the spandex industry held a meeting in Xiaoshan, Zhejiang. The manufacturers of the whole industry successfully raised the price of 3000-5000 yuan / ton, the price of Huafeng spandex was 5000 yuan / ton, the 40D price was 42 thousand yuan / ton, and the adjusted 47 thousand yuan / ton, or 12%. The price of raw materials has remained stable. "The increase in product prices and production has restored the gross profit of Huafeng spandex to more than 6000 yuan / ton, which is much better than the previous losses," said the Securities researcher.

In the first quarter of this year, the net profit of Huafeng spandex was 25 million 900 thousand yuan, and its net profit reached 65 million 706 thousand and 300 yuan in the three quarter.

Full load production and low inventory making industry The price of spandex is expected to rise. According to historical experience, there is still room for further improvement in the yarn utilization rate of downstream spandex. At present, most of the company's capacity has been fully opened, of which there may be factors of insufficient capacity structure. If demand is further warmer, it is bound to raise prices.

Liao Zhenhua, China Merchants Securities, pointed out that "in the second half of this year, the average price of spandex will increase by 3000 yuan, which will contribute about 0.13 yuan per share to the peak peak spandex earnings, and the impact on 2010 will be more obvious."

However, Yantai spandex executive director pointed out that spandex price has risen from 40 thousand yuan at the beginning of the year to nearly 50 thousand yuan. According to the information gathered from various sources, "there is no strong demand at present, and the price dynamics are not enough" unless the recovery in Europe and the United States accelerates in the next two months.

In September this year, the spandex industry once tried to raise the price again, but because of the increase in dealer inventory, some enterprises believed that capital preservation was more important than price increase, which led to failure.

In fact, "these two price increases are very problematic. It is unclear whether replenishment after stockpiling or dealers' stockpiling." The above secretaries said frankly, "the future price rise depends on the downstream demand, but the future spandex price is not big enough."

"The 106 Canton Fair is likely to become a turning point in the recovery of foreign trade." Haitong Securities textile and garment industry analyst Qu Zhihang believes.

However, reporters from Huafeng spandex, Yantai spandex and other enterprises learned that after the three quarter of rapid growth, there is no sign of the growth of downstream demand again: "9 and October are the traditional peak season, but this year is relatively special, there is no obvious distinction between the peak season. In August and August, there are more orders, but it is still relatively stable, but there is no indication that there will be a significant increase in the four quarter."