What Is The Impact Of The Epidemic On The Textile Industry? In The First Quarter, The 48 Textile Printing And Dyeing And Textile Machinery Listed Companies Showed Their Report Cards

Affected by the global spread of the epidemic, China's textile manufacturing industry has been hit hard. Especially since the first quarter, due to the epidemic control factors, China's textile industry has been hindered in the pace of resumption of production. Although some enterprises resume work in the late February, the subsequent aggravation of the overseas epidemic situation will lead to the loss of orders. February to May is the traditional peak production season for textile and garment enterprises It's hard to make up for it, especially for large textile and garment enterprises.

According to the first textile network monitoring statistics, as of March 31, 2020, 48 listed companies of textile, printing and dyeing auxiliaries and textile and clothing machinery in Shanghai and Shenzhen stock markets have achieved a total operating income of 27.624 billion yuan, a decrease of 9.675 billion yuan compared with 37.299 billion yuan in the same period of 2019, and the net profit attributable to shareholders of listed companies was 2.119 billion yuan, a decrease of 17.72 billion yuan compared with 3.891 billion yuan in the same period of 2019 100 million yuan.

　　 From the perspective of textile manufacturing sector, the production and operation of upstream textile enterprises in the first quarter were mainly affected by delayed resumption of work and logistics constraints. In the first three months of this year, China's textile and clothing exports totaled US $45.264 billion, down 17.7% year-on-year. Among them, textile exports totaled $22.694 billion, down 14.6% year-on-year, and clothing exports totaled US $22.570 billion, down 20.6% year-on-year.

In terms of product categories, the year-on-year decline of textiles, including yarn, fabrics, home textiles, industrial use and other manufactured goods, rose by 5.3 percentage points compared with the previous two months, and the decline of downstream clothing products continued to deepen by 0.6 percentage points compared with the previous two months.

Over the same period, the global PMI new order index was 39.2%, down 7.1 PCT month on month. Under the background of the spread of overseas epidemic, the global economic prosperity is under pressure, and Chinese textile enterprises are facing the pressure of order reduction, and the industry prosperity is weakening.

However, under the background of the shortage of medical materials such as masks and protective clothing caused by the outbreak of the epidemic, some textile manufacturing enterprises added production lines for related products to change production. However, most of the materials are used for donation, government collection and storage, and subject to the uncertainty of the supply and price of raw materials required for production, as well as the uncertainty of the actual production capacity reaching the production capacity and the output, the contribution to the performance is small and it is difficult to accurately predict. The market performance of mask protective clothing concept stocks was outstanding during the epidemic period, and most companies achieved 20% - 50% growth in more than one month.

Industry insiders said that from the perspective of listed companies, some textile manufacturing enterprises have already deployed overseas production capacity, which can reduce the negative impact of the epidemic on order production to a certain extent. Although the resumption time previously announced by various localities will affect short-term order delivery, it is expected to make up for it by working overtime after returning to work. In terms of orders, under the short-term panic, some overseas customers may transfer orders, but after the epidemic, it is expected that the demand will return to the track under the normal competition pattern. Therefore, the impact of the epidemic on textile industry export is one-off, and the medium and long-term impact is small.

Wang Xueheng, an analyst at Guoxin Securities, said earlier that there is still a big difference in the recovery rate between textile manufacturing enterprises. The employment situation of leading enterprises is relatively good. The enterprises with controllable upstream raw materials and stable downstream order demand are expected to be able to restore capacity saturation as soon as possible; downstream brand retail enterprises return to work earlier than the manufacturing industry, but it is expected that offline passenger flow recovery still needs to be certain Time, enterprises with better membership base and online sales layout can make up for more sales in this low passenger flow, and enterprises with sufficient cash reserves can withstand longer-term impact.

Wang Xueheng believes that with the alleviation of the epidemic situation, the resumption of production in manufacturing enterprises is generally delayed by one to two weeks, and the actual return rate still needs a period of time to reach a higher level, and the return rate of large enterprises is relatively high. Due to China's high proportion in global textile and garment exports, and is the upstream of garment manufacturing enterprises in Southeast Asia, the postponement of returning to work has also affected the supply of other global garment production industrial chains. Therefore, it is expected that suppliers with orderly management, global decentralized distribution and independent and controllable raw materials will be least affected.

From the perspective of observation, export-oriented enterprises may face the pressure of weakening external demand. It is expected that the pressure will mainly be transmitted to SMEs with poor order stability. The stable delivery time of core suppliers and the global order production and allocation capacity will help brand companies cope with the sudden change of demand in different markets in the world.

Wang Xueheng pointed out that at present, in the main clothing consumer markets, Japan, South Korea, Europe and the United States are facing the spread of the epidemic situation. Local consumers' demand for clothing may decline to a certain extent due to the impact of the epidemic in the short term. However, it is expected that due to the difference in isolation measures, the passenger flow at home and abroad will not necessarily decline as much as that at home, and brands have not been observed The situation of closing stores overseas due to epidemic situation. At the same time, China is also trying to control the risk of secondary infection caused by foreign import.