Most of the interim results of textile and garment enterprises are good, but the overall profit growth is not large.

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Original title: Most of the interim results of textile and apparel companies are good

China Securities Journal reporter Jiang Yanling

Wind statistics show that as of June 12, 46 textile and apparel listed companies have released interim results announcements, 36 reported good news. Most companies recorded growth due to factors such as the rebound in the industry, flexibility in capacity adjustment, and changes in business structure. According to industry insiders, although the overall report of the China Daily is improving, the overall profit growth rate is not large, and the industry still faces certain pressures in terms of transformation and upgrading and destocking.

Most textile companies grow

Of the 16 listed textile companies that have announced interim results announcements, 13 are forecasting growth. Among them, there are 3 pre-increased, 6 slightly increased, 3 surpluses, and 1 loss.

Huafu Color Spinning expects net profit for the first half of 2017 to be approximately 390.9 million yuan - 481.22 million yuan, an increase of 30%-60%. For the main reason for the pre-increased performance, the company stated that the main business Yarn sales increased and the product structure was optimized. Tianfeng Securities believes that Huafu Color Spinning has a major share in the mid-to-high-end color spinning market, and its product price has a competitive advantage.

The towel leading company Vosges has a good operating position in the first half of the year and is expected to maintain rapid growth. Analysts said that the RMB exchange rate was generally lower than that of the previous year. In 2017, the company's RMB-denominated export revenue is expected to grow slightly.

Some companies have achieved better performance expectations through capacity flexibility adjustment. Xinye Textile expects net profit for the first half of the year to be approximately 88.26 million yuan -10.183 million yuan, a year-on-year increase of 30%-50%. According to the company, cotton yarn production capacity has increased, while structural adjustment has achieved results and profits have increased.

Shandong Ruyi has achieved growth in performance by expanding production lines and adjusting production capacity. The company said that its subsidiary Taian Ruyi will add two new production lines, one of which has already reached production and the other is under construction. The Ruyi Spinning High-grade Worsted Fabric Project, which mainly produces high-end worsted fabric products, is under construction. It is understood that the gross profit margin of the project will be higher than the company's average gross profit margin. Shandong Ruyi’s secretary-general Xu Changrui previously stated that after the completion of the above projects, the company’s performance will be increased. Shandong Ruyi expects net profit for the first half of the year to be about 14 million yuan - 20 million yuan, an increase of 4.62% -49.46%.

Clothing companies accelerate transformation

Of the 30 apparel listed companies that have announced interim results announcements, 23 are forecasting growth. Among them, there are 6 pre-increased, 12 slightly increased, 4 surpluses and 1 loss.

The modern road newspaper reported that the loss was turned. According to the company, the company's net profit for the first half of 2017 was between RMB 0.95 million and RMB 105 million, an increase of 447.60%-484.19% over the same period of the previous year. For the main reason for the above changes in performance, the company stated that it disposed of the equity of the subsidiary to obtain investment income during the reporting period; the acquisition of 100% equity of Wuhan Yueran Xindong Network Technology Co., Ltd., which has been included in the scope of consolidated statements since May 2017.

Some companies that are more closely integrated with e-commerce are expected to see an increase in interim results. Senma Apparel expects its operating income in the first half of the year to be approximately 512 million yuan to 666 million yuan, a year-on-year increase of 0%-30%. According to the company, the casual wear business continued to improve, the children's business grew steadily, and the Internet business developed rapidly, which promoted the company's performance growth. In 2016, the company achieved a total operating income of approximately 10.667 billion yuan, and e-commerce retail sales accounted for 30% of total revenue.

Annai exerted a force to lay out the store. Dong Zhi Liao Zhigang said that he will continue to enter the high-quality department store; at the same time, the shopping mall channel is developing rapidly. At present, there are nearly 4,000 shopping centers, and the space for offline shopping is still large. Annair expects operating income in the first half of the year to be 455 million yuan to 500 million yuan, up 5% to 15.38% year-on-year. It is estimated that net profit attributable to owners of the parent company after deducting non-recurring gains and losses will be 42 million yuan to 46 million yuan. It increased by 5.47% year-on-year to 15.51%.

Some companies have poor retail performance, fewer orders, and expected short-term interim results. Busen shares expects to lose 21 million yuan to 28 million yuan in the first half of the year. For the main reason for the loss, the company said that customer orders decreased and operating income decreased. Baoxin Bird expects a loss of 20 million yuan to 40 million yuan in the first half of the year. The company said that the terminal retail market continued to be weak, and the various costs were relatively rigid and rising, and the company's operating conditions remained difficult.

Although some companies are expected to grow, the recovery pressure remains. Chen Ping, the secretary of the seven wolves, said recently that there has been an increase in terminal data since the fourth quarter of 2016. Whether to maintain a good momentum throughout 2017 and achieve a "true recovery, strong recovery" depends on sales in the third and fourth quarters. Seven wolves are expected to have a net profit of about 105 million yuan to 126 million yuan in the first half of the year, a year-on-year increase of 0%-20%.

According to analysts, in general, listed companies in the apparel industry have strengthened their transformation by optimizing supply chains, strengthening inventory management, optimizing online and offline layouts, and analyzing consumer segments. However, the market recovery is still lower than expected. In the case of channel e-commerce and diversification of consumer groups, the current situation of low profits of apparel companies is still difficult to change in the short term.

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