177 Textile And Clothing Listed Companies In Shanghai And Shenzhen

In the first half of 2020, with the spread of new crown pneumonia, the global economy is facing a greater risk of recession, which has a great impact on the production and operation of China's textile and garment industry. According to the statistics of 177 textile and garment listed companies in Shanghai and Shenzhen stock exchanges, most of the listed companies have steadily promoted the resumption of work and production, and actively cultivated and expanded the new business forms generated in the epidemic prevention and control, showing strong resilience and confidence. Especially since entering the second quarter, they have seized the favorable opportunity of the normalization of domestic epidemic prevention and control and the gradual recovery of domestic demand market. After strengthening the supply of emerging consumption, creating new growth points, and upgrading the brand value chain, they have achieved an overall recovery in production and operation performance, and the performance has gradually recovered, showing an obvious upward trend. The data shows that in the first half of the year, the production efficiency and other major economic indicators of Listed Companies in the textile and clothing industry have significantly decreased compared with the same period last year, and most of them are still in the negative growth range. However, since the second quarter, the decline has continued to narrow, and major economic indicators have shown signs of recovery.

1. In the first half of the year, 3 textile and garment enterprises were approved to be listed, and the total amount of initial raised funds has exceeded the fund-raising scale of four newly listed enterprises in the textile and clothing sector in 2019

(1) under the background of China Securities Regulatory Commission (CSRC) pushing the science and technology innovation board and accelerating the pilot reform of the registration system on the gem, the IPO speed of textile and clothing listed companies has increased significantly. According to the data, in the first half of 2020, the total number of A-share IPOs reached 127 (close to two-thirds of the total number of listing in Shanghai and Shenzhen stock exchanges in the whole year of 2019), and there were 3 newly listed textile and garment enterprises in the first half of this year, accounting for 2.36% of the total number of newly listed enterprises in Shanghai and Shenzhen stock exchanges in the first half of this year, 0.39 percentage points higher than that of 4 newly listed enterprises in the textile and garment sector of last year.

(2) in the first half of the year, the three newly listed companies in the textile and clothing sector raised a total of 1.794 billion yuan, which was 124.67% of the total amount of funds raised by the four newly listed enterprises in the textile and clothing sector in the whole year last year.

(2) as of June 30, 2020, there are 177 listed companies in the textile and clothing sector of Shanghai and Shenzhen stock exchanges (A-share).

According to the follow-up of 176 listed companies in the textile and clothing sector at the end of 2019, due to the change and adjustment of main business, two listed companies, duoai (002761. SZ) and Gan consulting (000779. SZ), were eliminated in the textile and clothing sector, and three new listed companies were added in the first half of the year.

Second, the epidemic has intensified the shrinking of the market value of the textile and clothing sector, further reducing the proportion of the market value of the textile and clothing sector in the total market value of Shanghai and Shenzhen stock markets

(1) due to the impact of the new crown epidemic, the global stock markets have been hit hard for a time, and the US stocks have even broken down one after another. Since March, with the strong prevention and control of the domestic epidemic situation and the government has launched a series of policies and measures, China's capital market has recovered rapidly and recovered significantly. The three major indexes of Shanghai and Shenzhen keep rising. The gem index, SME board index and Shenzhen composite index are ranked among the top three in the world with 35.6%, 20.85% and 14.97% respectively, becoming one of the best performing markets in the world in the first half of 2020.

(2) according to the statistical data, as of June 30, 2020, the total market value of 177 textile and garment sectors in Shanghai and Shenzhen stock markets was 1368.648 billion yuan, which was 21.236 billion yuan lower than that at the end of 2019, a decrease of 1.53%. Compared with the end of the first quarter, the growth rate was 5.44%. The market value of textile and garment sector accounted for 1.98% of the total market value of a shares in Shanghai and Shenzhen stock exchanges from 2.16% at the beginning of the year (a decrease of 0.18 percentage points). The relevant data are shown in Table 2 (unit: 100 million yuan)

(3) according to the market value statistics on June 30 of 101 listed companies in six major sub industries of textile and clothing sector, including chemical fiber manufacturing, clothing and apparel, textile machinery, industrial textiles, household textiles and traditional textiles, etc

(1) the market value of the chemical fiber manufacturing sector accounts for the largest proportion in the textile and clothing sector. The market value change of the plate in the first half of the year showed that it first suppressed and then rose. The plate suffered from the impact of the epidemic situation and had a rapid recovery. By the end of June, the market value of the plate had approached the pre epidemic level;

(2) clothing sector accounted for 20.95% of the market value, ranking the second largest market value plate in the industry, characterized by a large number of enterprises and small market value of a single enterprise. The market value of the plate went from bad to worse in the first half of the year, gradually falling, and had not yet reached the bottom and rebounded at the end of June. This is related to the fact that most of the clothing listed companies have not yet completely got rid of the impact of the epidemic on the domestic and foreign markets.

(3) in the first half of the year, the market value of industrial textiles increased sharply from 186.484 billion yuan at the beginning of the year to 236.757 billion yuan, and its proportion in the industry also increased rapidly from 13.41% to 17.30%. Although it is still the third largest market value in the textile and clothing sector, it has significantly narrowed the gap with the second (clothing and apparel sector). In the first quarter, the market value of the board rose against the trend, with a month on month growth of 10.02%. At the end of June, the month on month growth of market value of the plate reached 15.39%, and the growth rate increased by 5.37%.

(4) the traditional textile sector and textile machinery sector, including cotton, wool, flax and printing and dyeing, account for about 40% of the textile and clothing sector, but the market share is ranked fourth and fifth with 8.24% and 5.97% respectively.

(5) on the whole, household textiles were less affected by the impact of the epidemic. By the end of the second quarter, the market value of this sector was the same as that of industrial textiles, which had exceeded the market value level at the end of 2019.

3. In the first half of the year, 24.86% of the textile and garment enterprises suffered losses, and more than two-thirds of the listed companies in the textile and garment industry suffered from a decline in their mid-year income compared with the same period of last year

Affected by the epidemic situation, as of June 30, 2020, among 177 listed companies in the textile and clothing sector, 125 companies (accounting for 75.14% of the board) had their net profits in the first half of the year declining to varying degrees compared with the same period of last year. 44 companies reported losses, with a total loss of 5.958 billion yuan. The total number of loss making enterprises and the total amount of losses increased by 120% and 178.80% respectively over the same period of last year.

(1) revenue

In the first half of 2020, the total operating revenue of textile and clothing sector was 547.656 billion yuan, which was 3.78% lower than that of the same period of last year (569.171 billion yuan). Among them, 9 companies with revenue over 10 billion, 2 less than the same period last year. Hengli Petrochemical (600346. SH) continued to rank first with 67.358 billion yuan.

(2) net profit

In the first half of the year, the textile and clothing sector achieved a total net profit of 33.423 billion yuan. Compared with the same period of last year (37.051 billion yuan), it decreased by 9.79%. Among them, there are 8 textile and garment listed companies with a net profit of more than 1 billion. Rongsheng Petrochemical Company replaced Hengli Petrochemical Company and ranked first in the list of net profit with a net profit of 5.587 billion yuan.

(3) aspect ratio

In the first half of the year, the revenue and profit of the textile and clothing sector decreased by 2.15% and 11.08% respectively compared with the average level of a shares in Shanghai and Shenzhen stock markets. It shows that the profitability of the textile and clothing sector has been greatly damaged compared with the average level of a shares, and the anti risk ability of the textile and garment sector is low due to the impact of the epidemic situation (details are shown in Table 6 below).

Fourth, the business cycle is prolonged, the production and operation performance is declining, and the short-term debt increase is large

(1) affected by the epidemic situation, the production and operation cycle of the textile and garment sector in the first half of the year was significantly prolonged, and the operation performance was significantly decreased. The average business cycle of textile and clothing listed companies was 320.58 (days), an increase of 26.16% over the same period of last year; the turnover period of inventory was 232.33 (days), increased by 35.08% over the same period of last year; the turnover days of accounts receivable were 89.56 (days), an increase of 7.80% over the same period of last year. Figure 7 is shown in the table below

(2) in the first half of 2020, the assets of 177 listed companies in the textile and clothing sector totaled 193.2489 billion yuan, an increase of 10.78% over the same period of last year. Among them, current assets amounted to 865.185 billion yuan (a year-on-year increase of 6.20%) and current liabilities of 776.614 billion yuan (a year-on-year increase of 15.26%). Table 8 is as follows:

(3) according to the data, in the first half of 2020, the asset liability ratio of textile and garment sector was 56.33%, 1.07 percentage points higher than that of the same period of last year, which was stable and slightly increased, and was in a safe and reasonable range. The total short-term loans of 177 listed companies in the board totaled 343.783 billion yuan, an increase of 28.56% over the same period last year, showing a rapid growth trend. Table 9 below:

Since the fifth quarter and the second quarter, the performance of the textile and clothing sector has gradually recovered, and the trend is obvious

According to statistics, in the second quarter of 2020, the operating income of the textile and clothing sector increased by 136.27%, the net profit increased by 242.24%, the market value increased by 5.44%, and the loss area of the textile and clothing sector decreased from 31.01% at the end of the first quarter to 24.86%.

The data shows that, although there is no expected retaliatory consumption since April, the capacity utilization level of 177 listed companies in the textile and garment sector has accelerated recovery, the performance has gradually recovered, and the operation quality and efficiency has improved significantly, driven by the normalization of epidemic prevention and control, the gradual recovery of domestic demand market, and the negative to positive growth of production and export of epidemic prevention materials. As the results of the first quarter are included in the interim report, and the accumulated profits have caused losses due to covering the epidemic situation, it is estimated that the operating conditions of many companies in April and may have just recovered. It is expected that there will be good performance in the three quarters.

In the second quarter of 2020, the month on month growth (growth rate) of revenue of six major sub industries in the textile and garment sector exceeded 200 (PCT.), and the growth rate of net profit (growth rate) exceeded 100 (PCT.), indicating that most enterprises in the textile and clothing sector are in the recovery and recovery stage in the second quarter. Among them, textile machinery and textile, industrial textiles and chemical fiber manufacturing showed outstanding performance, with net profit growth (growth rate) of 625.59 (PCT.), 347.46 (PCT.) and 312.54 (PCT.) respectively, showing good performance.

In the first half of the year, in terms of effectively coping with the impact of the epidemic and maintaining the stable and healthy development of the company, Hengli petrochemical, taipingniao, Desu fashion, GELIS, Hailan home, Zhongjian technology and other textile and garment listed companies performed well and achieved remarkable results. With the help of the national tax reduction and fee reduction, rent reduction and rent-free policy, they have made remarkable achievements in restoring production and returning to work, becoming bigger and stronger, transforming and upgrading, using big data management to improve business efficiency, developing online new economy, and promoting new retail. They have become successful cases for the whole industry to learn from.

For example, taipingniao (603877. SH), the growth rate of net profit income in the second quarter of this year was the fastest since the company went public, and its performance was very bright. This is mainly due to the company's emphasis on and flexible use of "new retail" since this year. Meanwhile, it has actively transformed the digital mode of internal operation and management, opened up and reconstructed the online and offline big data application module of the company, thus successfully forming a set of operation mechanism and workflow with data-driven as the core and rapid response of all departments of the company. The operation efficiency of the whole process from product design to marketing is greatly improved, the cost control is more clear and rigorous, and the effect of efficiency and consumption reduction is very good. In the first half of the year, the operating revenue was 3.217 billion yuan, 3.11% year-on-year, and the net profit was 117 million yuan (- 8.50% year-on-year). Among them, the operating income and operating profit increased rapidly in the second quarter, which greatly exceeded the market expectations. Operating income and net profit increased by + 132.67% and + 1498.72% respectively.

For example, Hengli Petrochemical (600346) accelerated to become bigger and stronger in the first half of the year. Not only the 1.5 million tons / year ethylene project was successfully put into operation, bringing new profit increment to the company. The 11.6 million ton PTA capacity expansion project is also accelerating the construction and production, becoming the only PTA large-scale mass production company with a scale of more than 10 million tons in the world. The polyester production capacity of the company has also broken through the scale level of more than 3 million tons. In addition, the production capacity of industrial silk of the company will double to 400000 tons in the second half of the year. The expansion of production capacity will bring obvious cost advantages. According to the China Daily News, the company's assets reached 186.144 billion yuan (ranking the second in the textile and garment sector), with a total operating revenue of 67.358 billion yuan (ranking first in the industry), and a profit of 5.546 billion yuan (ranking second in the industry).

Another example is the high-speed growth of online economy of Hailan home (600398) in the second quarter, and the income growth is obvious. The company focuses on the main brand of Hailan home, actively promotes the digital upgrading and online transformation of stores, and deeply cultivates the channel, and advances steadily. According to the statistics of China Daily News, in the second quarter of 2020, the operating income increased by + 110.53%, and the net profit increased by + 219.29%. The company's main operating economic indicators quickly recovered benign growth, and the recovery trend of performance was obvious.

6. Judging from the mid-term evaluation and evaluation in 2020, the textile and garment sector is in a "sub-health" state, and there are potential risks in its operation and development

(1) according to asys.16 system, the profit level and health index (his average) of 177 textile and garment listed companies in Shanghai and Shenzhen stock markets in the first half of 2020 are 39.39 and 75.56 respectively, which are 12.51% and 7.94% lower than the mid-term evaluation results in 2019. From the overall trend, since 2017, the profit level and health index of Listed Companies in the textile and clothing sector have continued to decline, and the evaluation value in the middle of 2020 has reached a relatively low point. It shows that the textile and clothing sector is in sub-health state in 2020, and there are some potential risks and hidden dangers in its operation and development.