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    How Big Is The Epidemic? In The First Quarter, 48 Textile Printing And Dyeing Machines And Textile Machinery Listed Companies Showed Their Transcripts.

    2020/5/6 11:30:00 183

    Epidemic SituationFirst QuarterListed Company

    Affected by the global spread of the epidemic, China's textile industry has been hit hard. Especially since the first quarter, due to epidemic control factors, China's textile industry has been hindered by the resumption of production and resumption of production. Some enterprises have resumed work in late February, but the consequent increase in overseas epidemic situation has led to the loss of orders. The 2-5 month is the peak season for traditional production of textile and garment enterprises, once lost, it is very difficult. Make up for, especially in large textile and garment enterprises.

    According to statistics, as of the first quarter of March 31, 2020, 48 textile, dyeing auxiliaries and textile and garment machinery listed companies in Shanghai and Shenzhen two achieved a total operating income of 27 billion 624 million yuan, compared with 37 billion 299 million yuan in the same period in 2019, a decrease of 9 billion 675 million yuan, a net profit 2 billion 119 million yuan attributable to shareholders of listed companies, a decrease of 1 billion 772 million yuan compared with 3 billion 891 million yuan in the same period in 2019.

    From the perspective of textile manufacturing sector, the upstream textile enterprises in the first quarter were mainly affected by the delay in resumption of work and logistics constraints. In the first 3 months of this year, the total export volume of textiles and clothing in China was 45 billion 264 million US dollars, down 17.7% from the same period last year, of which the total export of textiles was 22 billion 694 million US dollars, down 14.6% from the same period last year, and the total export volume of garments was 22 billion 570 million US dollars, down 20.6% from the same period last year.

    From the product category, exports of textiles including yarns, fabrics, home textiles, industrial and other manufactured goods increased by 5.3 percentage points over the first two months, while the decline in downstream clothing exports continued to increase by 0.6 percentage points over the first two months.

    Over the same period, the global PMI new order index was 39.2%, a decrease of 7.1pct compared to the same period. Under the background of the spread of overseas epidemic, the global economic pressure was under pressure. Chinese textile enterprises are facing pressure of order reduction, and the industry boom is weakening.

    However, in the context of the shortage of medical supplies such as masks, protective clothing and other medical materials, some textile manufacturers have set up production lines for related products. But most of the materials are used for donation, government procurement and storage, and are subject to the uncertainty of raw material supply and price, and the uncertainty of actual production capacity and production. The contribution to the performance of masks and protective clothing stocks is outstanding during the epidemic. Most companies have gained 20%-50% in a month or so.

    Insiders said that from the perspective of listed companies, some textile manufacturers had already laid out their overseas production capacity, which could alleviate the negative effects of the epidemic on the order production to a certain extent. Although the previously announced resumption time would affect short-term orders delivery, it is expected to make up for overtime work after resuming work. Orders, in the short term panic, some overseas customers have the possibility of order transfer, but after the outbreak, demand is still expected to return to normal competition. Therefore, the impact of the epidemic on the textile industry's exports is a one-off effect with a medium and long-term impact.

    Wang Xueheng, an analyst at Guoxin Securities, said earlier that there is still a big difference in the rate of re production between textile manufacturers. The leading enterprises are relatively well employed. Enterprises with controllable upstream raw materials and stable demand for downstream orders are expected to restore their capacity as soon as possible, while the downstream brand retailers are returning to work earlier than the manufacturing industry, but it is still expected that the passenger flow recovery will take some time. Companies with better membership and online sales can make up for more sales in this low passenger flow. Companies with sufficient cash reserves can withstand longer shocks.

    Wang Xueheng believes that with the ease of the epidemic, manufacturing enterprises generally postpone the resumption of work for one to two weeks, and the actual rate of re production will still take some time to reach a higher level after the resumption of work, and the rate of re production of large enterprises is relatively high. Due to the high proportion of China's textile and apparel exports in the world, and the upstream of the garment manufacturing enterprises in Southeast Asia, the postponing of work has also affected the supply of other apparel production chains in the world. It is predicted that suppliers with orderly management, decentralized layout and controllable raw materials will be least affected.

    Observation shows that export oriented enterprises may be under the pressure of weakening external demand. The pressure is mainly transmitted to small and medium enterprises whose orders are less stable. The stable delivery time of core suppliers and the ability of global order production deployment help brands to respond to sudden changes in the demand of different markets in the world.

    Wang Xueheng pointed out that at present, Japan, South Korea, Europe and the United States are facing the spread of the epidemic in the major consumer market of clothing. Local consumers' demand for clothing may be reduced to some extent in the short term. However, due to the difference between quarantine measures, there will not be a significant decline in overseas passenger flow. The situation of outbreaks due to external diseases. At the same time, China is also trying to control the risk of two contagion caused by foreign input.

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