Textile And Clothing Risks Remain In The Second Half Of The Year

Shen Wan Textile and garment industry Of the 66 listed companies, 11 companies announced semi annual reports in 2010. Of them, only the San Mao Group continued to lose money in the first half of the year. The performance of black peony and Huasheng shares decreased year by year, and the performance of the other companies increased by a different margin. The growth rate of the textile industry in the first half of the year was 201% and 161% respectively.

The industry believes that, with the improvement of the macroeconomic environment and the actual operating conditions of the industry, the mid term performance of textile and garment enterprises is generally optimistic, and some companies exceed expected growth. The steady growth of the performance in the second half of this year is expected to continue, but there is also the risk of squeezing profits in the industry.

Medium-term performance without worry

Textile semi annual report shows that International economic situation In the first half of the year, business income of 1 billion 63 million yuan, an increase of 32.03% over the previous year, achieved a net profit of 37 million 409 thousand and 700 yuan, an increase of 201.3% over the previous year, and a basic earnings per share of 0.1263 yuan.

Huafu color spun achieved operating income of 2 billion 289 million yuan in the first half of this year, an increase of 42.71% over the same period last year. Net profit attributable to parent company was 164 million yuan, an increase of 161.48% compared with the same period last year, and the basic earnings per share were 0.70 yuan. The growth of performance mainly benefited from the boom of the downstream garment and wool textile industry, and the company's capacity and technological advantages emerged.

Wind data also showed that 43 textile and apparel listed companies released interim results notice. In general, 29 companies pretended to be happy, accounting for 67% of all forecast companies, and the rest 12 were worried. In the pre hi company, the net profit in the first half of the year increased by nearly 5 times, the cashmere industry increased by 450%, and the Phoenix Bamboo textile increased by 300%.

The cashmere industry said financial crisis The impact is gradually weakening, the export environment is getting warmer, and the export revenue has increased. At the same time, with the expansion of the domestic sales business, the domestic sales volume has increased year by year; in 2010, the average sales price of the main products increased by about 30% compared with the same period last year, and the operating cost was kept at a lower level because of the lower stock reserves at the beginning and lower prices of the company, and the profit space could be improved.

The situation of the silver cashmere industry reflects the overall situation of the textile industry. The industry said that in the first half of this year, the market situation of textile and garment industry has gradually improved, and the boom has picked up. No matter in the export market or in the domestic market, it has shown a good trend. The business situation has continued to improve, and the profit level has been rising continuously. Coupled with the lower base level in the same period last year, the growth of the mid term performance of the textile and garment sector is no longer suspense.

Under the pull of the expected growth in performance, the textile and garment sector, which has shown a low level of performance in the past, has also done well in the near future. The overall growth rate of the plate reached 5.04% in 5 days, ranking seventh in the 23 industries. In the plate, ST has been more than 15% in the 5 days, including the textile and *ST cotton companies. The 10 day increase is over 20%.

Risks remain in the second half of the year

Hua Fu color spinning and textile also predicted that the performance in the first three quarters of this year will increase significantly. Huafu color spinning expects net profit of 235 million yuan in the first three quarters, an increase of 81% over the same period last year. The expected net profit of the textile and textile industry increased by 230%-260% over the same period last year.

Huafu color spinning said that the company's product structure continued to optimize, enhance profitability, cotton inventory prices to maintain the advantage, profitability growth. Textile products show that the textile industry is getting warmer, and the selling price of products has improved.

Dongfang securities Shi Hongmei believes that the growth of future industry revenue will come from the number of export orders and the recovery of prices compared to the previous year.

CIC securities Kong Jun pointed out that textile and garment export enterprises have already completed the three quarter of production orders, so the export growth of domestic textile and garment in the three quarter will still be guaranteed. The fourth quarter expected export growth will decline. The decline depends on the order of enterprises in the three quarter. It is estimated that the overall trend of textile and garment export should be higher and lower.

Huatai joint securities Wang Rong said that domestic sales growth continued to stay above 20%. Benefiting from strong demand in the first half of the year, low cost raw material inventory and product price increase, corporate profits in the three quarter will increase considerably.

According to the National Bureau of statistics, in the first half of this year, the total retail sales of clothing, shoes and hats and needles and textiles in the wholesale and retail enterprises above designated size were 275 billion 400 million yuan, an increase of 23.8% over the same period last year, of which the growth rate in April, May and June were 21%, 22.5% and 26.6% respectively.

However, the industry is also concerned about the overall development of the textile and garment industry in the future. Apart from the uncertainty of foreign economic resurgence will bring risks to the industry's exports, the current raw material price fluctuation is obvious, labor costs continue to rise, coupled with the appreciation of RMB expectations, is also constantly squeezing the profitability of export enterprises. Shi Hongmei said that in the second half of this year, the domestic textile and garment industry will face the situation of squeezing profit space after rising incomes.