Case Analysis Of The Decline In Performance Of Textile And Apparel Listed Companies

It has been observed that 5 textile and apparel listed companies have declined for the three consecutive quarter of net profit. With the A share market delisting system really spreading across the board, the performance of the stock market has continued to decline.

The first show of listed companies has been smashed this year. According to the latest statistics of financial information, A share's net profit has increased by 18.13% in the first quarter.

Most of the listed companies of textile and clothing are going downhill, the performance is down 15.51%, the performance is lower than expected, and the prosperity of each sub industry is divided.

The author noted that there were 5 families.

Net profit has declined for three consecutive quarters.

This continued decline in performance also sounded the alarm for the rest of the listed companies.

Following the formal launch of the gem delisting system, the anticipated main board delisting system has also really solved the problem.

As the A share market delisting system is really fully rolled out, how long can these companies last in the A share market?

Big slide in performance differentiation

The overall performance of the textile and garment plate not only did not increase in the first quarter, but also showed obvious landslides.

The data showed that in 2012, the textile and garment industry realized net profit of 2 billion 647 million yuan in the first quarter, while the net profit of the industry was 2 billion 980 million yuan, 2 billion 827 million yuan, 3 billion 139 million yuan and 3 billion 133 million yuan respectively in the first quarter of 2011 to the four quarter of 2011.

Obviously, the textile and garment industry in the first quarter of this year net profit fell 11.17%, a decrease of 15.51%, and has been the two consecutive quarter of decline in performance.

Net profit after deducting non recurring gains and losses can more accurately grasp the company's substantive performance changes.

The net profit of the textile and garment industry after deducting non recurring gains and losses in the first quarter was 2 billion 316 million yuan, becoming the lowest data value in the last 4 quarters. In the first quarter of 2011 to the first quarter of 2012, the net profit of the industry was 2 billion 269 million yuan, 2 billion 319 million yuan, 2 billion 752 million yuan, 2 billion 357 million yuan and 2 billion 316 million yuan respectively.

Business income is the main business achievement of enterprises, and it is an important guarantee for enterprises to obtain profits.

From this perspective, we can diagnose the operating status of an industry.

The textile and garment sector achieved operating income of 40 billion 270 million yuan in the first quarter of this year, a decrease of 2 billion 522 million yuan, a decrease of 5.89%.

In fact, this index has also declined for the two consecutive quarter.

In the fourth quarter of last year, the business revenue of the industry was 42 billion 792 million yuan, down 5.86%.

According to Shenyang Wanguo Securities Analysis, the first quarter

Slightly lower than expected, the sub industry boom has been divided.

Men's clothing company performance is more prominent, outdoor products, women's clothing companies overall meet expectations; leisure wear and home textiles category growth slowed down significantly, the performance is lower than expected.

The slow growth of income and net profit is mainly related to macroeconomic downturn, changing weather at the beginning of the year, falling demand for terminal consumer demand, and continuous regulation and control of real estate.

From the profit table, the overall gross profit margin of the industry shows a trend of steady rise. In the high-end men's clothing, women's clothing and home textile industry, the increase of brand value leads to the increase of gross margin.

During the period, the total cost was controlled properly, the proportion of sales expenses increased gradually, the proportion of management cost was relatively stable, and the cost rate of male and female companies increased significantly.

Another broker expects.

And the men's clothing industry expects good results in the medium term in 2012. It is expected that the domestic market and export situation will gradually improve in the two quarter.

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A case study of profit falling 5 shares

The overall data show that

There were 16 loss making companies in the first quarter of this year, of which 7 companies were losing profits from profits to losses, and 4 of them had sustained losses. 36 of the listed companies in profits were down.

The overall downturn of the industry boom seems to add many excuses to many of the listed companies' unsatisfactory performance, but some companies continue to decline in single quarter performance, so that people have to be suspicious.

In the first quarter of this year, earnings per share -0.02 yuan, net assets yield -0.38%, main revenue decreased 4.07% compared with the same period last year, net profit fell 174.96% year-on-year.

From the single quarter indicators, the net profit in the first quarter of 2011 to the first quarter of 2012 was 8 million 484 thousand and 900 yuan, 94 million 538 thousand and 800 yuan, 79 million 587 thousand and 500 yuan, 13 million 559 thousand yuan and -636.06 million yuan respectively, and the performance has declined for three consecutive quarters, and there has been a marked loss.

A quarterly disclosure revealed that the net profit margin of 1~6 months in 2012 was less than 15%. The reason is that the market is becoming more competitive due to the continuing adverse impact of the unfavorable business situation in 2011.

From the two tier market, as of May 14th closing, the stock has fallen 4.94% this year, running 8.24% of the market.

In the first quarter of this year, earnings per share -0.022 yuan, net assets yield -0.55%, main revenue decreased 12.02% compared with the same period last year, net profit fell 194.91% year-on-year.

From the single quarter indicators, the first quarter of 2011 to the first quarter of 2012 net profit was 3 million 603 thousand and 700 yuan, 39 million 315 thousand and 800 yuan, 19 million 321 thousand and 300 yuan, 2 million 477 thousand and 600 yuan, -342.02 million, also appeared three consecutive quarters of decline in performance.

A quarterly report predicts that net profit attributable to shareholders of Listed Companies in 2012 1~6 decreased by 50% to 80% compared with the same period last year.

Since June 2011, the macroeconomic situation of manufacturing industry has not been reversed.

The delay of the bag and sup industry in the peak season resulted in a decline in orders and profits in the zipper industry.

From the two tier market, as of May 14th closing, this year, the stock fell 3.69%, 4.55 percentage points to lose the market.

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In the first quarter of this year, earnings per share -0.0185 yuan, net assets yield -0.47%, main revenue decreased 17.64% compared with the same period last year, net profit fell 112.23% year-on-year.

From the single quarter indicators, the net profit in the first quarter of 2011 to the first quarter of 2012 was 19 million 568 thousand yuan, 19 million 165 thousand and 200 yuan, 10 million 632 thousand and 500 yuan, 6 million 467 thousand and 800 yuan and -239.30 million yuan, and there had been four consecutive quarters of decline in performance and obvious loss.

In 2012, a quarterly report revealed that net profit loss during the reporting period was 2 million 390 thousand yuan. The main reason for the performance loss was a substantial decrease in raw material prices. Meanwhile, the price of cotton textile business was greatly reduced compared with that of the cotton textile industry.

From the two tier market, as of May 14th closing, this year, the stock has fallen 20.07%, substantially losing the market (the Shanghai Composite Index rose 8.24% over the same period).

The company's earnings per share were 0.02 yuan in the first quarter, and its main revenue decreased by 5.38% compared with the same period last year. Net profit fell 45.72% year-on-year.

From the single quarter indicators, the net profit in the first quarter of 2011 to the first quarter of 2012 was 4 million 462 thousand and 700 yuan, 13 million 400 thousand and 500 yuan, 13 million 337 thousand and 900 yuan, 6 million 308 thousand and 700 yuan, and 2 million 422 thousand and 400 yuan respectively.

A quarterly report revealed that the investment income of the company during the reporting period was -136.43 million, which was mainly caused by the loss of the India Cements Limited of Hangzhou airlines, a joint venture company. The company confirmed that the investment income was -100.65 million yuan.

From the two tier market, as of May 14th closing, the stock has risen 61.43% this year, and the yield has outperformed the market by 6.46 times.

It seems that the decline in performance has not brought a shadow to the two tier market.

The company's earnings per share in the first quarter of this year were 0.11 yuan, the net assets yield was 2.24%, the main revenue decreased by 6.52% compared with the same period last year, and net profit dropped 44.55% compared to the same period last year.

From the single quarter indicators, the net profit in the first quarter of 2011 to the first quarter of 2012 was 207 million 753 thousand yuan, 283 million 894 thousand yuan, 225 million 12 thousand and 700 yuan, 131 million 868 thousand and 300 yuan, and 115 million 194 thousand and 400 yuan respectively.

A quarterly report revealed that the main reason for the decline in net profit during the reporting period was the impact of the European debt crisis, which led to a downturn in European market demand, a slow recovery in the US economy, and an increase in domestic labor and energy costs, resulting in an increase in the cost of products, a decrease in prices and a decline in gross margins.

The financial cost during the reporting period was 19 million 360 thousand yuan, or 11 million 760 thousand yuan in the same period last year, mainly due to a decrease in exchange earnings.

From the two tier market, as of April 26th closing (since then has been suspended), the stock has risen 4.86% this year, running 8.24% of the market gains.