Everbright Securities: Understand The Annual Report And Quarterly Report Summary Of Textile And Garment Industry

The annual report of the securities and clothing industry in 2021 is summarized. For the brand clothing industry, its 21 years of performance is more than 19 years, under the influence of the 22q1 epidemic, the small molecule industry is under pressure; In the textile manufacturing industry, the performance in 21 years and 22q1 achieved steady growth year on year.

The main points are as follows:

Brand clothing industry: 21 years of performance more than 19 years, under the influence of the 22q1 epidemic, small molecule industry differentiation

According to statistics, there are 43 A-share and H-share companies belonging to 10 sub industries. In 21 years, the total industry income and net profit attributable to the parent company have recovered and exceeded the 19-year level, increasing by 12.24% and 26.79% respectively compared with that in 19 years. 22q1 industry income and net profit attributable to the mother were - 3.24% and - 37.81% respectively, which were mainly affected by the epidemic situation.

Financial indicators: the gross profit rate and net profit rate of return to parent company in 21 years were higher than that in 20 years and 19 years. Under the background of 22q1 epidemic, the gross profit rate was basically flat, and the net profit rate to parent decreased significantly; The industry period cost rate has been more than 20 years and 19 years for 21 years. Under the background of 22q1 epidemic situation, the cost is rigid and the year-on-year increase is large; The turnover of industry inventory and accounts receivable in 2021 is faster than that in 20 years and 19 years, but under the influence of 22q1 epidemic, the turnover of inventory is obviously slowed down year on year, and the total inventory is increased year on year; Net operating cash flow increased in 21 years compared with 20 years and 19 years, and 22q1 decreased year on year due to the impact of epidemic situation.

Sub industry analysis: compared with 19 years, the growth rate of sports apparel, high-end clothing and home textile in 21 years was the leading, with an increase of 42.99%, 29.29% and 14.69% respectively. In addition, outdoor and medium and high-end men's wear also exceeded the 19-year level. 22q1 affected by the epidemic situation, the income of footwear, children's wear, public clothing, underwear, high-end clothing decreased to varying degrees year-on-year, and the income of luggage and outdoor increased by more than 20% year-on-year, with outstanding performance.

Average year-on-year growth of textile industry

According to statistics, there are 51 A-share and H-share companies belonging to 10 sub industries. In 21 years, the industry income and net profit attributable to the parent company have recovered and exceeded the 19-year level, increasing by 0.97% and 22.36% respectively compared with that in 19 years. The income of 22q1 industry and the net profit attributable to the parent company were + 10.78% and + 3.03% respectively on a year-on-year basis. The profit growth rate was lower than that of revenue, which was mainly affected by the decline of 22q1 profit of robust medical.

Financial indicators: the gross profit rate and net profit rate of parent company were basically the same in 21 years, but increased compared with that in 19 years, and the same in 22q1; The period cost rate in 21 years is slightly lower than that in 20 years and 19 years, and slightly lower in 22q1; The turnover speed of inventory and accounts receivable in 21 years was basically the same as that in 20 years and 19 years. The turnover of inventory in 22q1 slowed down year on year and the turnover of accounts receivable was stable; Net operating cash flow decreased year on year in 21 and 22q1.

Sub industry analysis: compared with 19 years, the growth rate of chemical fiber, industrial textiles, printing and dyeing income increased by 48.54%, 46.45% and 34.58% respectively, while garment manufacturing, wool spinning and other manufacturing have not recovered to the 19-year level. 22q1 except fur and industrial textiles, the income of other sub industries increased year on year.

Competition with foreign brands will aggravate the risk of domestic brands; The growth of e-commerce platform traffic slows down, or the flow cost rises, which affects the profitability of brand merchants; The continuous rise of labor cost and energy cost affects the profit of textile manufacturing enterprises; The price of raw materials such as cotton fluctuated greatly.