Expand Production Capacity Next Year, Concentrate On Releasing Spandex Industry Boom Turning Point Ahead Of Schedule

Yesterday (July 19th), though

Rapid decline in performance growth

According to the announcement, Yantai spandex is expected to be realized in the first half of this year.

Nevertheless, if the company's pre growth figures are calculated, the growth rate of its performance is decreasing rapidly.

In fact, the average net profit of spandex in Yantai has increased by an average of 60% over the past 5 quarters since the two quarter of last year.

But according to statistics, the net profit of Yantai spandex in the second quarter was 79 million 990 thousand yuan, up 27% from the first quarter.

This result dropped by 24 percentage points over the first quarter of 51%.

At the same time, the 27% quarter growth rate in the two quarter was the lowest in the past 4 years, excluding the 4 quarter.

It is not only Yantai spandex, Huafeng spandex in the two quarter.

Next year, industrial capacity will be released centrally.

The blowout of spandex prices in the first quarter of this year has made the relevant companies "happy", but with the recent price of spandex 40D about 15% higher than that of the year, the industry's outlook on the market outlook is no longer optimistic or even cautious.

A researcher from a brokerage industry registered in Kunming yesterday told the daily economic news that the increase in the number of listed companies including Yantai spandex and other listed companies basically met expectations. However, the negative factors of supply and demand may indicate that the industry inflection point has arrived.

First of all, as the downstream of spandex is mainly used for export clothing, textile exports are not optimistic in the second half of this year as cotton prices rise and the global economic outlook is uncertain.

Once the export variable is weak, the order volume of enterprises will definitely be affected. Secondly, the rapid callback of spandex prices since April reflects that after the expansion of industrial capacity, more inventory can not be effectively digested. Under such circumstances, because enterprises usually do not voluntarily reduce the rate of opening up, the possibility of price reduction is greater, and the final pressure will be corporate profits.

"In the second quarter, the price of spandex did show a callback, but it has stabilized at present," Dong Xuhai, representative of Yantai spandex securities affairs, told the daily economic news. "Although the growth rate of the second half of the year is not expected to be as fast as before, the arrival of the peak season September means that spandex will not be ruled out again.

Therefore, the key to the growth of the company's performance in the second half of this year depends on whether the whole industry will raise the price again.

In addition, the company's inventory is less than 1 months, and the downstream is generally short, which can further avoid the risk of sluggish demand.

Analysts of China chemical fiber information network, who do not want to be named, believe that the price of spandex 40D is currently 51000 yuan / ton, up 24% and 11% respectively from the end of March last year and the end of July.

The average price is expected to be 53000 yuan / ton ~55000 yuan / ton this year.

It is worth noting that if the demand for the spandex industry in the fourth quarter is driven by the demand for the peak season, there will still be some opportunities for the industry.

But because next year is a concentrated release period of the industry capacity, the spandex industry will receive a short-term turning point when its downstream acceptance capacity is limited.