How Is The Cold And Warm In The Textile Industry? Has The Difficult Time Passed?

According to the world clothing and shoe net, recently, according to the in-depth investigation of more than 100 entities in 6 cities in 3 provinces, the most difficult period has basically passed, but there may be repeated.

How is the industry going? Is the hard time already over?

Recently, 70 textile companies in Shanghai and Shenzhen two cities

Listed companies disclosed the 2017 semi annual report notice. Most of the listed companies were pioneers in the industry. Though they could not see the whole picture of the industry, they could still see the clue of industrial change from this report.

In the report, it is estimated that there are 20 enterprises with net profit exceeding 100 million yuan and 30 enterprises with a net profit of more than ten million yuan, accounting for nearly 80% of net profit growth.

Big business share is expected to go against the market.

Rongsheng Petrochemical expects net profit to rank at the top of 1 billion 200 million yuan.

The estimated net profit of apparel is 513 million yuan ~6.66 billion, ranking second. Huafu color spinning expects net profit of 391 million yuan to 481 million yuan in the first half of the year, ranking third.

For the rapid growth of performance, Rongsheng Petrochemical said that the main reason is that the aromatics plate will steadily release benefits, making the profitability of the company significantly higher than that of the same period. In addition, the PTA plate and chemical fiber plate market is more stable.

Taking Semir clothing as an example, the rapid growth of the company's performance is mainly due to the continuous improvement of leisure wear business, the steady growth of children's business and the rapid development of Internet business, thus promoting its own performance growth.

After the pformation from the company to children's clothing, the company's performance is outstanding.

Judging from the performance in the first quarter of 2017, the sales of children's wear brand balbala still maintained an increase of more than two figures, and continued to consolidate the leading brand position of children's clothing.

Some people said that textile and garment enterprises must be pformed according to market consumption, and product sales have become one of the main reasons for the improvement of enterprise performance.

Taking Huafu color spinning as an example, half year preview is based on three reasons: first, the main yarn sales increase and product structure optimization; the two is the development of front end and end chain business; the three is to strengthen resource integration and internal management, increase the completion of the project and reduce the cost of the period.

The Great Wall securities analysts believe that domestic cotton prices basically stabilized, overseas yarn prices rose sharply, demand at home and abroad slowly recovered, textile manufacturing industry as a whole has a relatively high degree of business prosperity.

With the advance of the supply side reform and the remolding of the industrial chain integration, the future advantageous resources will gradually flow to large enterprises. Large enterprises will further extend to the upstream and downstream industries chain, the orders will be gradually concentrated, the market share of the industry is concentrating, and the share of large enterprises is expected to increase against the market, and the survival of small enterprises will be more and more difficult.

In the future, small businesses will be able to seek development only through resource restructuring, brand innovation, diversification of channels, and expansion of financing. Because of the change of regulatory policies, enterprises with weak competitive power and smaller market capitalization will be blocked directly through the way of shell sales.

Mergers and acquisitions and new business pformation promote growth

A number of research institutes have pointed out that the textile and garment industry has entered a weak recovery stage. From the point of view of performance, mergers and acquisitions and new business pformation have promoted some companies' performance growth significantly.

In the clothing companies listed companies with a net profit increase, the annual growth rate in 2017 was the highest, and the net profit attributable to shareholders of listed companies reached 95 million yuan ~1.05 billion yuan, an increase of about 447.60%~484.19% compared with the same period last year. Kaiser culture realized a pre increase, and the net profit margin of shareholders belonging to listed companies is expected to be about 88 million 979 thousand and 300 yuan ~1.11 billion yuan, an increase of 100%~150% over the same period last year.

Take the modern Avenue as an example, acquisition has become one of the reasons for the growth of business performance.

During the reporting period, the shares of the subsidiary were disposed of and the investment income was obtained; the 100% stake of Wuhan yuenenxin Network Technology Co., Ltd. was acquired, and the company was incorporated into the consolidated report form from May 2017.

It is understood that the main business of Wuhan yuenenxin Network Technology Co., Ltd. is the development and operation of mobile Internet social networking applications, locating overseas mobile Internet users.

The reason for the change in Kaiser's cultural performance is that in the same period of last year, the friends from heaven began to merge into the scope of merger in June. Therefore, the net profit attributable to shareholders of listed companies has increased considerably over the same period last year.

Tian Jia Jia's main business is the development and operation of mobile network games. Currently, the online game products mainly include new Legend of Sword and Fairy 3D, purification, constellation goddess, plant vs. zombie OL and so on.

After the acquisition of Kaiser culture in the sky, we gradually build up a diversified development platform based on clothing and Internet game industry and financial industry, and accelerate the pformation and upgrading of the company through the three wheeled development mode.

The reason for Vigna S's rapid growth is that the merger of the company after the acquisition of TeenieWeenie.

GF Securities Research Report believes that after the acquisition of TeenieWeenie, the company's brand matrix is enriched, forming synergy among customers, design, production and channels, and greatly increasing the company's profits and providing stable cash flow.

In addition, TeenieWeenie is introduced to study its pnational operation experience and steadily promote the internationalization of the company.

Three or four cities become competitive blue ocean

Everbright Securities research report pointed out that in the wake of the rise of the market personality consumption and the change of consumption concept, clothing enterprises have also adopted the way of designing for kings, small batch production and changing the goods at any time to meet the various needs of consumers.

Therefore, many garment enterprises get together with the three or four tier cities in China.

Huatai Securities Research Report also shows that since 2007, the three tier cities, especially the three tier cities in the Midwest, have replaced the first and second tier cities, and become the fastest growing region in retail sales.

Most importantly, the report points out that the three or four tier cities are still dominated by traditional retail outlets such as street shops, and the supply of quality retail is scarce.

The price of commercial land in the three or four tier cities is relatively slow; the cost advantage and policy support have reduced the risk of enterprise channel sinking.

According to the calculation, the three or four line new store opening effect is 6000 yuan, that is, it is expected to be even. Many enterprises have three or four lines of new shops to cultivate for only two years.

In addition, the consumption upgrading stages of the first and second tier cities are different from those of the three or four tier cities, which are in the stages of stock upgrading and incremental expansion respectively, and the mechanism of contribution to consumption is different.

The consumption concept of the second and second tier cities is changing from "brand orientation" to "quality oriented". The proportion of high net worth people and the contribution of consumption will increase.

The three or four line city will be the blue ocean for the clothing brand to compete for the share increment. Under the three driving forces of population return, revenue growth and infrastructure improvement, the consumption demand of brand will be developed, and the local clothing brand will benefit from the enhancement of brand awareness of consumers and the promotion of new channel layout.

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