Textile And Apparel Industry 2013 Analysis Of Inventory

We have 42 families. Spin clothing Industry key companies (including brands) Clothes & Accessories 22 companies and 20 textile manufacturing companies) made a general analysis in 2013.

Textile in 1H13 Garment industry The revenue of key companies increased by 14.8%, representing a 6.8 percentage point increase over the 8% growth rate in 2012, of which the growth rate in the two quarter was 18.2%, higher than the 11.5% growth rate in the first quarter. 1H13 deducted net profit growth of 6.5%, an increase of 28.6 percentage points over the growth rate of -22.1% in 2012, of which the growth rate in the two quarter was 12.1% higher than the 1.9% growth rate in the first quarter.

Plate differentiation is obvious. Textile manufacturing Continue to warm up, brand clothing has not improved significantly. The textile manufacturing sector continued to recover in the two quarter, with an increase of 9.1% in revenue and 67.7% in net profit. The two quarter income of brand clothing increased 23.4% from 10.4 in the first quarter, but the net profit declined 8.7%.

Brand clothing: revenue increased by 17.7%, net profit decreased by 6.1%. In the first half of 2013, the income of 22 key brand clothing companies increased by 17.7% over the same period last year, higher than the 11.8% growth rate in 2012, but lower than the 2009-2011 year growth rate (21%, 33.8% and 38.6% in 2009-2011 years). The net profit of non net profit fell by 6.1% over the same period last year, though it was slightly higher than the -8% growth rate in 2012. Quarterly revenue growth in the two quarter was higher than that in the first quarter, but the net profit growth rate was not improved.

　　 Brand clothing The sub sectors and companies are divided, men's profits decline, home textiles and leisure are slightly improved. 1H13 Men's wear Revenue growth was 3.4%, net profit fell by 14% year-on-year, the lowest level since 2009. Among them, the first quarter revenue increased by 7.1%, the net profit was 4.2%, and in the two quarter, the net income decreased by 1.4%. The net profit fell by 28.4%. 1H13 home textiles gross margin increased, cost rate stable, profitability improved, but the operation is still more general. The non net interest rate of the leisure industry in the two quarter narrowed compared with the first quarter, and the operation in the first half of the year was slightly improved.

Textile manufacturing: 2Q revenue growth, gross margin continued to rise, the lower base net non net profit increased by 68%. 1H13 textile manufacturing key company revenue increased by 8.6% year-on-year, net profit of non profit increased by 56.2% over the same period. Among them, the first quarter revenue increased by 8%, net non profits increased by 38.6%, a marked recovery compared with 2012, the two quarter net income and net profit growth rate continued to rise, respectively, 9.1% and 67.7%. 2013 in the first half of the year, the gross margin of the industry increased by 1.7 percentage points over the same period of 19.1%, which rose by 1 percentage points in the first quarter, and 2.2 percentage points in the two quarter, while the cost rate was relatively stable. Under the combined influence, the non net interest rate of textile manufacturing sector in the first half of 2013 was increased by 5.9% percentage points, up 1.8 percentage points over the first half of the year. However, although the gross profit margin and net non net interest rate of the 2013 plate increased significantly compared with 2012, it was still at a relatively low level compared with the 2009-2011 years, and there was still room for improvement in the profitability of the plate.

Investment recommendations: (1) textile manufacturing: textile manufacturing sector experienced a 2011 and 2012 income growth and profitability decline, revenue growth began to pick up in 2013, the net effect of low base net profit growth is obvious, mainly due to cotton prices high raw material digestion, at home and abroad Cotton price difference Reduce the gross profit margin of enterprises. Under the huge gap between domestic and foreign cotton consumption and consumption ratio, we think that the cotton price difference has been reduced to a long-term trend. The gross profit margin of textile manufacturing enterprises is expected to continue to improve. It is recommended to continue to focus on textile manufacturing sector, especially cotton spinning enterprises directly benefiting from the narrowing of cotton price difference, such as Lu Tai A, Huafu color spinning and Baron East. (2) brand clothing: in the context of distribution as the main selling mode, the current brand Apparel enterprises Extension expansion slowed down, orders will be lower than expected, company level inventory is higher or lagging phenomenon, leading the valuation of 10-12 times, already has a higher margin of safety, it is recommended to pay attention to profits began to improve home textiles leading and operational improvement of the group of shares.

Risk warning: internal and external economic recovery is lower than expected, RMB appreciation, terminal inventory is high, and cotton policy uncertainty.