The Trend Of Performance Differentiation Is Obvious &Nbsp; The Leading Brands Of Textile And Clothing Are More Powerful.

Due to the revival of demand and the improvement of the industrial operation environment, the overall performance of the textile and garment industry in 2010 has been fairly determined.

But cost led.

Growth is clear and differentiation is obvious.

As of February 24th, 4 listed companies in Shen Wan textile and garment industry announced the annual report in 2010. Net profits attributable to shareholders of the parent company all increased.

11 listed companies released a performance bulletin, excluding the performance of the 4 companies declined slightly, the rest showed an increase.

48 companies released performance forecasts, of which 42 were preview companies, and 6 were preview companies.

From the performance, it is easy to see that the textile and garment industry has achieved no suspense in achieving steady growth in overall performance last year.

In the context of a marked recovery in domestic and foreign economies, whether exports or

However, companies in the industry also show obvious performance differentiation. The main reason for this trend is the rise in costs and the ability of enterprises to pfer costs.

As investment income and government subsidies amounted to 320 million yuan,

Driven by soaring cotton prices, in 2010, domestic garment fabrics and accessories increased substantially and the cost of labor increased, which further squeezed profit margins of some enterprises.

Jin Feida (002239), whose net profit fell 63% last year, said that the total business revenue increased slightly compared with the previous year, but the cost of production increased significantly, while the price of clothing products in foreign markets was relatively stable, resulting in a substantial decline in gross profit margin. At the same time, the appreciation of the renminbi also had a negative impact on the company's efficiency.

Similarly, the textile and garment enterprises with better cost pfer capability have also realized the product price rise as the cost is rising.

Futian shares (002083, stock bar) (002083), fuanna (002327, stock bar) (002327), Luo Lai home textile (002293, stock bar) (002293), Meng Jie home textile (002397, stock bar) (002397) three home textile enterprises performance has achieved remarkable growth.

Fuanna said the company's home textile industry is in a period of rapid growth, and the market potential is huge. With the continuous improvement of the living standard of domestic residents, the consumption power is increasing.

Fu Shi shares said that the company vigorously expand the market, expand sales channels, speed up the adjustment of the market structure to the dominant market, and raise the price to different degrees in the domestic and international markets.

Leading brands are more powerful

The industry expects that in 2011, China's textile industry is a steady and steady market demand. However, the situation of low gross margin and fierce competition will not change in the short term. In the context of rising pressure on raw materials and labor costs, the trend of future textile and garment enterprises' performance differentiation will continue to intensify.

In February 24th, China's cotton price index (level 328) was 30365 yuan / ton, and stood on the high price of 30 thousand yuan, an increase of over 10% compared with the beginning of the year.

As one of the main raw materials of the textile industry, domestic cotton 95% is used for spinning, weaving, printing and dyeing, and then processing into garments. The pressure of rising prices of raw materials is continuously being pmitted to downstream industries such as weaving, printing and dyeing, clothing and home textiles.

China's first textile network analyst Wang Qianjin believes that high cotton prices will accelerate the polarization of the textile and garment industry.

Because of the strong bargaining power of backbone enterprises and the large reserves of raw materials, the impact of the high cotton prices on the production and operation of such enterprises is not large, and the most frequently affected SMEs are those in a disadvantaged position.

This is also a necessary stage to eliminate backward production capacity. Industrial resources gradually flow to large enterprises with high added value in the process.

As a result, leading enterprises in the industry with certain brand advantages, channel advantages and product advantages will win more market share, steady growth in orders, gross margin will also steadily improve, strong performance growth and more investment value.

Dongfang securities Shi Hongmei also said that in the upgrading of consumption, more and more consumers began to pay attention to the environment of dress taste, personality and fashion. It is expected that the domestic brand clothing enterprises will maintain high-speed growth in 12th Five-Year, while also optimistic about the growth of the leading companies for garment enterprises.