Impact On Indian Textile Industry: A Large Number Of Orders Are Transferred To Chinese Enterprises, And These A-Share Companies Account For A High Proportion Of Export Sales

At the opening of the trading on October 14, individual stocks of the textile industry strengthened one after another. As of the time of publication, Jujie microfiber and wanlima had achieved a 20% trading limit. In addition, Kute intelligent, Bailong Orient, Xinye textile and Jinchun shares also rose by more than 8%.

In the first half of this year, the domestic textile industry was in a stagnant state due to the impact of the epidemic situation, especially foreign trade orders, which led to the continuous accumulation of inventory in the textile industry, bringing certain business pressure. However, with the restart of economic activities in Europe and the United States, the orders of China's textile industry suddenly ushered in a new round of booming period, and the number of orders continues to rise.

According to industry insiders, on the one hand, this situation is caused by the peak season of traditional foreign trade industries; on the other hand, a large number of overseas orders are rapidly shifting from India to the Chinese market.

According to China's official data, from January to August this year, China's textile and clothing exports amounted to 187.41 billion US dollars, an increase of 5.6% year-on-year. In August, China's textile exports amounted to 14.72 billion US dollars, an increase of 47% over the same period of last year; and clothing exports reached 16.21 billion US dollars, a year-on-year increase of 3.2%, realizing the first positive growth this year.

September is the traditional peak season of the textile market, with active transactions, partial backflow of export orders, obvious start-up of domestic sales, and shortage of cotton yarn in some regions. According to the survey of more than 90 designated textile enterprises by China's cotton early warning system, the raw material inventory of textile enterprises increased in September, and the textile output rose month on month, while the yarn and cloth inventory decreased. Starting rate rebounded, textile production compared with last month also increased.

In addition, according to media reports, among the orders transferred from India to China, the number of products such as towels and bed sheets is the largest. Some factories expect that the current order quantity has been arranged until May next year.

With the continuous spread of the epidemic in India, the domestic textile industry is expected to usher in a growth period.

Ding Shijie of Guoxin Securities said that October will usher in the third quarter performance disclosure window period, optimistic about the excellent performance of high-quality leading companies under the background of the industry boom improving month by month. At the same time, looking forward to the fourth quarter, under the stimulation of October double festival, double 11, "cold winter" and other factors, along with the continuous rise in consumption, it is expected to usher in the peak season market, and we are optimistic about the high-quality companies with potential for performance improvement.