Export Tax Rebate Has Limited Contribution To Export Enterprises' Profits, And Cotton Price Difference Is The Main Reason.

It has limited contribution to the profit growth of textile and garment export enterprises.

The biggest role of tax rebate rate increase is that enterprises have reduced price space to participate in competition in the international market.

The ratio of actual profits to corporate profits is not very large.

The increase of export tax rebate rate has created room for price reduction for export oriented textile and garment enterprises, and enhanced the competitiveness of enterprises in the international market under the crisis situation.

Without affecting the efficiency of enterprises, the price reduction created by the increase in the export tax rebate rate can stimulate export growth to a certain extent and increase the chance for domestic enterprises to tide over the "severe winter" of the industry.

At present, the biggest factor affecting the profits of domestic export enterprises is internal and external.

Price difference.

At present, the most important factor affecting the profit of textile exporting enterprises is the difference between inside and outside cotton, and the price of outer cotton is about 20% lower than that in China. This directly affects the competitiveness of Chinese products in the international market. When foreign businessmen generally calculate the cost of textile products with the international cotton price, this will directly lead to the difficulty in raising the prices of Chinese exports and at the same time bear the higher cost of cotton in the country, which will directly lead to a decline in the profits of enterprises.

In the second half of the year, a good price of cotton will improve the profitability of textile enterprises.

Because

The relationship between product prices and cotton prices is "bullish not bearish", cotton prices are rising, and enterprise product prices, gross profit and net profit will rise.

Therefore, the trend of cotton prices in the future determines the profitability of cotton textile enterprises.

We believe that there is little room for cotton prices to fall in the future, and the future price trend will show a "Nike type" increase.

In the second half of the year, the steady rise of cotton prices will lead to a rebound in corporate profits. The second half of the year is better than the first half of the year.

Leading enterprises in the textile industry are expected to achieve greater development in the industry adjustment.

Although the growth rate of textile and garment exports will slow down in 2012, we believe that this adjustment period is inevitable. In the future, the domestic textile industry will gradually get rid of the status of "global textile processing plant".

Therefore, the leading textile enterprises in China have strong technical equipment and R & D advantages, and will gain greater opportunities for development.

Notable listed companies are Lu Tai A, Huafu color spinning and Jiaxin silk.

Risk warning: the continuous "fermentation" of international trade policy and the European debt crisis will affect the growth of domestic exports to Europe.