The Performance Growth Of Listed Textile And Clothing Companies Slowed Down In The First Half Of The Year. The Time For The Industry To Break Out Is Not Yet

As an important branch of the big consumption sector, Textile clothing The performance of the industry this year has been unsatisfactory. By the end of yesterday's closing, the Shenwan Textile and Clothing Index had dropped 4.3%, which is still nearly 1 percentage point behind the Shanghai Composite Index. Analysts pointed out that the poor performance of the textile and clothing industry was mainly due to the difference between the performance of listed companies and market expectations. The report also showed that the performance growth of listed textile and clothing companies slowed down in the first half of the year, slightly lower than expected.

The terminal downturn affected growth In the first half of the year, the overall growth of the textile and clothing industry was sluggish due to the downturn in terminal consumption. From the perspective of the mid report, the revenue of the key companies of Shenwan Textile and Clothing increased by 7% year on year, and the net profit decreased by 10% year on year. The growth of revenue and net profit continued to slow down. Among them, the revenue of textile manufacturing enterprises dropped by 4% year on year, and the net profit dropped by 59% year on year, which dragged down the overall performance of the sector; The income of clothing and home textile enterprises increased by 12% year on year, and the net profit increased by 13% year on year, which was better than that of export manufacturing enterprises.

The mid report performance of each sub industry shows some differentiation. Specifically, the growth of men's clothing industry is relatively stable. The growth of net profit of most enterprises is about 40%. The performance meets or slightly exceeds expectations. The pressure on channel inventory has eased slightly compared with the beginning of the year, and the overall financial situation is relatively healthy.

　　 High end women's wear The growth rate of net profit has slowed down, but it is still at a high growth rate, and the performance also meets the expectations. Among them, the growth rate of net profit of Lucie has reached 48%, and the share price has also risen by 17% since this year, with the highest increase of nearly 50%. The leisure clothing industry has been hit by the dual attack of foreign brands entering the domestic market and the rise of e-commerce. The market competition has further intensified, the performance growth has also continued to slow down, and the mid report net profit is in line with or below expectations.

The home textile industry is affected by the regulation of real estate, the growth rate of terminal demand slows down, and the channel inventory pressure is large. Leading companies Luolai Home Textile Net profit in the first half of the year dropped 17.7%, and the share price has dropped nearly 30% since this year; The textile manufacturing industry's mid report performance was generally lower than expected, mainly due to weak external demand, rising labor costs, the scissors gap between domestic and foreign cotton prices and other factors. Both revenue and net profit showed negative growth, including the net profit of Huafu Color Textile and Blum Oriental fell by more than 70%, and the share price of Blum Oriental, which was just listed in June, fell by more than 30% compared with its offering price.

After the time of the industry outbreak was not announced in the China News, the market made a new round of adjustment to the performance expectations of each company in 2012. However, Xu Wen, a researcher of Xiangcai Securities, believes that there is still pressure to further reduce the performance expectations in the textile and clothing industry as a whole.

Specifically, although the performance of the men's wear industry was stable in the first half of the year, the second half of 2011 was the peak of performance, so the pressure of growth in the second half of 2012 was greater than that in the first half of the year. If listed companies can achieve the current performance expectations, it is not easy. At present, the downstream terminal consumption is not significantly better than that in the first half of the year. The data of the recent order meeting, the growth rate of terminal consumption and the mood of franchisees all reflect that men's wear will also face downward performance pressure in the future.

The leisure apparel industry needs to focus on its inventory rationalization and internal management. From the current situation, the inventory of Meibang Garments and Souyute is improving, and the negative impact of inventory disposal on gross profit margin has been gradually released; However, Sima Garments is still in the initial stage of inventory disposal, and its gross profit margin will also face downward pressure in the future as the company's inventory is stabilized.

In contrast, the inflection point of textile manufacturing enterprises' performance has arrived, because the second half of 2011 was a low point on a year-on-year basis, so the pressure of textile enterprises' year-on-year growth in the second half of 2012 was small, and the current market expectations for textile enterprises have been at a low level. The performance of some textile enterprises in the second half of the year may be expected by supermarkets, which will bring investment opportunities for individual stocks. However, as the inflection point of demand still needs to wait, industrial investment opportunities for textile enterprises have not yet arrived.