China'S Home Textile Industry Is In The Long Run.

Mid 2011 performance disclosure is coming to an end, the first half of the year.

Influenced by the price increase of products and the favorable environment of consumption, most textile and apparel listed companies maintained good growth in the first half of this year, and the profits of home textile enterprises increased particularly.

Roley home textiles (002293), fuanna (002327), Meng Jie home textiles (002397) medium term net profit growth were 79.28%, 73.84%, 46.86%.

Among them, fuanna first half net profit 85 million 669 thousand yuan, with 79.28% increase lead the industry.

Roley, home textile, multi brand, strength and expansion

In August 16th, Luo Lai home textile released the 2011 semi annual report.

According to the data disclosed in the announcement, in the first half of the year, the company achieved operating income of 1 billion 3 million 250 thousand yuan, an increase of 51.59% over the same period last year, a total profit of 187 million 720 thousand yuan, an increase of 65.53% over the previous year, and a net profit of 162 million 440 thousand yuan attributable to shareholders of the parent company, an increase of 73.84% over the previous year.

With the significant increase in gross profit margin and net interest rate in the first half of the year, the operating cash flow of the home textile company has shown signs of improvement.

During the reporting period, the company consolidated gross profit margin in the first half of this year reached 40.82% (gross profit margin of main business was 41.84%), up 1.51 percentage points over the same period (the gross profit margin increased 0.75 percentage points).

During the reporting period, a substantial increase in government subsidies led to an increase of 120.77% of the company's off balance revenue compared with the same period last year. At the same time, the company was recognized as a high-tech enterprise in April this year, and the corporate income tax rate was changed from 25% in 2009 to 15%.

With the growth of sales revenue and the expansion of franchise channels, the company's operating cash flow in the first half of this year has changed from -3475 million yuan to 52 million 400 thousand yuan in the same period last year.

In the operation of enterprises, Luo Lai home textile continues to take the brand flagship.

During the reporting period, the company's sales revenue increased by 51.59% over the same period last year, of which the sales revenue of the main brand of the "Luo Lai" brand increased by 55% over the same period. The sales revenue of "snow red" increased by 49% over the same period last year. The sales revenue of "Shang ma ke" increased by 49% compared with the same period last year. "Disney" sales revenue increased by 49% over the same period last year, and its brand sales revenue increased by 388% over the same period last year.

On the scale expansion, Luo Lai home textile increased the proportion of Direct stores in the first half of the year.

The direct investment chain marketing network construction project for raising funds has been postponed and extended than planned. Up to now, the progress of the direct project has been 8%.

Wang Fenghua, senior analyst of Hongyuan securities and textile and garment industry, pointed out that Luo Lai home textile has maintained a 62.20% high growth rate in East China, and has increased the expansion of two or three line cities and the increase and layout of sales channels, which will distract the risk of over reliance on a single regional market.

In the second half of this year, the home textile industry is still in the stage of rapid growth. As a leader in the industry, the management capacity of the household textile industry is strong, and the gross profit margin is expected to further improve in the second half of this year as cotton prices fall sharply.

Roley home textiles expects that net profit attributable to shareholders of listed companies will grow by 50%-70% over the same period last year, 1-9 months.

Fuanna's performance is far ahead of stock price innovation.

In August 15th, fuanna released a semi annual report in 2011, with a turnover of 607 million 600 thousand yuan in the first half of the year, an increase of 34.06% over the previous year, a profit of 111 million 620 thousand yuan, an increase of 81.60% compared with the same period last year, and a net profit of 111 million 620 thousand yuan attributable to shareholders of listed companies, up 79.28% over the same period last year.

As the company's performance in the first half of the year is far ahead of other home textile listed companies, fuanna's share price has risen all the way before the disclosure of the newspaper, setting the highest price since listing 53.87 yuan.

The good performance of Fuan will be attributed to several factors. First, the sales growth of the direct channel is growing faster, and the direct growth of the internal business has obvious effect on the rent and management cost.

The gross profit margin increased steadily from 45.79% in the three quarter of 2010 to 46.11% in the fourth quarter, and the first quarter of 2011 continued to rise to 49.56% in the first quarter of 2011.

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The two is to adjust and upgrade the product mix, increase the proportion of high margin product parts and the core, increase the promotion of the package type and the core products, and improve the overall profit level through the adjustment of the sales structure.

Li Xin, a researcher at CITIC Securities, said that since this year, fuanna has actively adjusted its sales strategy and innovates its new sales mode. Its total store area growth in 2011, 2012 and 2013 can reach 34%, 28% and 24% respectively.

Lei Yu, an analyst with Changjiang Securities, believes that the company is one of the leading enterprises in the home textile industry, and has advantages in the management of Direct stores, and the growth of both extensive and endogenous growth will bring about a new round of rapid growth in revenue.

In addition, for the second half of the year, Fu Anne disclosed in semi annual report that inflation and other factors are restraining domestic consumption capacity or is facing some impact.

In addition, the state has tightened the policy of real estate regulation and reduced the income brought by the purchase to the industry.

Fuanna expects that net profit attributable to shareholders of listed companies will grow by 50%-70% over the same period of 1-9 this year. Innovative sales models such as e-commerce and group consumption will bring new profit growth points.

Meng Jie home textiles: favored by the fund's high-end brand "sleep" performance increased significantly

In August 11th, Meng Jie home textile announced half yearly report.

In the first half of this year, the total revenue of the company increased by 554 million yuan, an increase of 59.61% over the previous year, and the operating profit was 55 million 478 thousand and 300 yuan, an increase of 61.69% over the same period last year. The net profit was 41 million 644 thousand and 600 yuan, an increase of 46.86% over the same period last year.

Shi Hongmei, chief analyst of Orient Securities textile and garment industry, believes that the growth of business income of Meng Jie home textile industry mainly comes from the exuberant demand of industry and the rapid expansion of company channels.

From the perspective of the expansion of Meng Jie home textile stores, there were 1990 stores in 2010 and 328 new stores. The newspaper disclosed that this year the store is expected to expand more than 400 stores, with a total number of more than 2390 stores.

Especially in the second half of the year, the direct market terminal network construction project has opened 1 large stores in Beijing, Tianjin and Changsha, and 44 new stores in Shanghai and other cities, and 10 rectification counters.

The project is expected to be completed in December this year. The store is expected to increase to 95. It is expected to increase the sales revenue of 254 million 80 thousand yuan per year for the company and increase the net profit by 31 million 440 thousand yuan.

Unlike other two companies, Meng Jie home textile is committed to building the existing brand and increasing the proportion of sales of high value-added products.

At present, the three main brands of the company are "Meng Jie", which is positioned as the high-end consumer group, the "sleeping" of high-end consumer groups and the "dream baby" which is located in the children's consumer groups. The three brands in the first half of the year respectively have a business income of 428 million yuan, 110 million yuan and 16 million 80 thousand yuan, with a gross profit margin of 41.21%, 52.97% and 50.03% respectively.

Especially the high-end brand "sleep", the revenue growth increased by 110.66% over the same period last year, the proportion of revenue increased from 16.41% in 2010 to 19.92%, the gross profit contribution rate increased from 21.95% in 2010 to 24.08%, and the income and profit of the vulnerable areas increased significantly.

Meng Jie said that the positioning of high-end "sleep" brand has gradually matured, its gross profit margin is higher than the "Meng Jie" brand of nearly 10 percentage points, but the increase in promotional efforts makes the first half of the "sleep" brand gross margin declined slightly by 3.49 percentage points compared with last year.

Because of its good performance in the first half of the year, Meng Jie home is very popular with the fund. The fund occupies 9 seats among the top ten tradable shareholders, including two funds and social security funds of the "Huaxia Department", holding nearly 11 million shares of the company, accounting for nearly 25% of the total shares.

Home textile industry as a whole is in the long term.

Looking at the semi annual reports of three home textile listed companies, the high growth of sales expenses and high growth receivable reflect the radical development strategy of home textile companies. At present, three companies are still in the stage of horse race.

With the advent of the third quarter sales season, the annual growth of these three quality brand enterprises is relatively clear.

According to the textile industry performance released by the Ministry of industry in the first half of the year, the overall profitability of the textile and garment industry is still at a relatively high level in the first half of this year. In the 1-6 months of this year, the income of owners and business operators of textile enterprises and textile and garment manufacturers increased by 29.49% and 30.55% respectively, representing a cumulative increase of 39.43% and 42.22% respectively in total profits.

Home textile companies are still in the stage of brand competition as the subdivision consumption field of textile and clothing, and the consumption upgrading space is larger in the future.

Like brand clothing enterprises, the home textile companies are still in the core stage of operation to expand to the external market stage, and there is still much room for further improvement in industry concentration.

According to the survey of China Textile Industry Association, the three categories of clothing consumption, household and industrial consumption in developed countries account for 1/3 of the total market consumption, but the proportion of our country is about 65%, 23% and 12%.

Lei Yu, an analyst with Changjiang Securities, believes that the home textile industry is in the stage of bud to development, and the market space is huge.

In the future, with the improvement of residents' income level, the upgrading of consumption concept, the advancement of urbanization, the implementation of affordable housing policy and the development of wedding market, the market of home textile enterprises in China will further expand.