2016 Continuous Improvement Of Supply Chain Inventory In Textile And Apparel Industry

Income statement shows

The overall revenue has benefited from the increase of market concentration, the growth of the order volume of the leading enterprises and the negative growth of the year-on-year growth rate. At the same time, the low price of raw materials has stabilized, leading to the release of profit margins. The gross profit margin is basically stable, and the net interest rate has increased by quarter.

Leading enterprises are expected to continue to benefit from the strong support of the supply and demand environment for cotton prices, as well as the signing of Vietnam's TPP tariff agreement and Xinjiang's policy subsidies.

In the medium and long term, with the increase of export tax rebate rate,

With the expected continuous strengthening, the competitiveness of China's textile manufacturing industry can be improved. The overall business environment of the textile manufacturing industry is expected to improve, and leading enterprises will benefit from the improvement of market concentration.

Sub sectors have recovered positively since the 4 quarter of 2014.

It is worth noting that with the continuous advance of early discounts and inventory clearance, the overall gross margin level of the industry is relatively stable. However, due to the rapid expansion of the other low margin business of some enterprises in the second half of 2015, the overall level is relatively low.

After the brand shuffling and structural upgrading, the demand side of clothing consumer market has been improved, but it is subject to the continuous inventory clearing, the adjustment cycle of shops is lengthened, and the cost rate remains high. Net interest rates remain at a historical low.

The balance sheet reflects textile,

Operational efficiency has been improved and textile profitability has been continuously improved.

1) the turnover of textile business has improved significantly since the 1 quarter of 2016. Based on the decline in inventory and receivables growth, the net cash flow generated by operation increased significantly compared with the same period last year, and the net profit margin continued to improve, showing that the quality of corporate earnings improved significantly.

2) garment enterprises have experienced significant improvements in the scale of shrinkage, structural adjustment, and overall operational benefits, along with endogenous indicators.

The turnover rate has been consistently good since 2015. To a certain extent, after the bottom of the inventory, the adjustment of the enterprise's terminal channel has begun to come into being. However, the overall profit quality remains to be improved.

Three annual report notice: 80 A shares

Half of the listed companies have been announced, of which 8 increase in the textile manufacturing industry.

Domestic textile sub industry increased by 10 in advance.

Overall, we expect the three quarterly performance of the spinning and weaving industry to continue the performance of the newspaper. Among them, the textile sub industry benefits from the integration of the industry and the impact of raw material prices.

and

The natural recovery growth brought about by the increase of endogenetic indicators in the subprime industry will bring about an increase in the growth of the endogeneity index. The leading enterprises will take advantage of the advantages of resources to actively layout and pform, and the growth rate of growth will continue to improve with the increase of market concentration.

The overall value of the spinning and weaving sector is relatively low.

As of August 31st, the 2016 dynamic PE was about 31 times that of all A shares (excluding banks). The premium rate was about 1.06 times, and the textile manufacturing premium rate was about 1.22 times.

Home textiles is about 1 times.

New stocks, backdoor listing, mergers and acquisitions, pformation stocks continued to gain the top.

Industry returns to supply chain value and selects medium and long-term layout.

We are optimistic about the excellent enterprises that refine the internal strength, and realize the vertical optimization of the supply chain in order to enhance operational efficiency.

On the other hand, we need to focus on the basis.

We should build an external supply chain platform and integrate the pioneers to disperse the upstream and downstream resources.

Recommend the cotton textile sector determined by boom, and clear stocks with clear strategy and clear growth path.

Suggestions are focused on: 1. Maison culture (clear strategic pformation and growth space), Huas shares (industrial chain integration, card social networking)

Top level ecology); 2. Huafu color spinning (subdivision industry boom, start flexibility.

Strategy), Xinye textile and Luen Fat shares (undervalued value, steady growth of performance, industrial extension expectations); 3.

(continuous optimization of supply chain, it is expected to become a real "big company") and Hai Lan's home (leading mode, with valuation repair space).