As of March 11, 2022, the 2021 performance reports of 50 listed textile and apparel companies in Shanghai, Shenzhen and Beijing that reporters are following have been disclosed. The performance forecast shows that since 2021, the textile industry has gradually recovered after the epidemic normalized, and the prosperity of sub-sectors has been significantly differentiated. It can be said that the achievements achieved are hard-won.
8 companies’ net profit forecast more than tripled
The type of performance forecast shows that there are a total of 30 companies that predict performance increases, profits, and losses, and the total proportion of companies reporting good news is 60%; there are a total of 20 companies that predict performance decreases or losses.
The reporter combed through and found that among the companies with promising performance, based on the expected net profit increase, a total of 24 companies had a net profit increase of more than 50%. Among them, the net profit of 8 companies increased by more than 200%, including: Shanshan Co., Ltd., Shenma Co., Ltd., Ordos, Taihua New Materials, Blum Oriental, Xinfengming, Binhua Co., Ltd., and Shanghai Petrochemical. Among them, the highest growth rate of net profit attributable to shareholders of listed companies is about 2146% to 2356%, and the lowest growth rate is about 207% to 239%; the other 13 companies include: Shandong Fiberglass, Tongkun Co., Ltd., Wanhua Chemical, and Sanyou Chemical , Fengzhu Textile, Jiansheng Group, Golden Pheasant Stock, Xinao Stock, Fuchun Dyeing and Weaving, Dahao Technology, Mugaodi, Jack Stock, Xinhuajin. Among them, the highest growth rate of net profit attributable to shareholders of listed companies is approximately 195.11% to 246.43%, and the lowest growth rate is approximately 52%.
Looking back at the textile and apparel industry in 2021, some securities analysis institutions believe that the trend of brand apparel in 2021 will be obvious from high to low throughout the year. The second half of the year will be greatly affected by the epidemic and economic slowdown. Export manufacturing will benefit from the recovery of external demand and its own competitiveness. Improved and maintained rapid growth, it will still be the highlight of the growth of the textile and apparel industry in the short term.
Tapping potential to resume growth
Although affected by overlapping factors such as the continuation of the global COVID-19 epidemic, rising prices of upstream raw materials, downward pressure on consumption, and unilateralism, there are still many companies that have improved their production efficiency, increased production capacity utilization, and expanded online + offline channels. Newly acquired companies should be incorporated into statements and other strategies to tap their own potential and achieve restored growth.
Shenma Co., Ltd., a major domestic nylon 66 manufacturer, recently disclosed its 2021 performance forecast. The company estimates that the net profit attributable to shareholders of listed companies during the reporting period will be 2.054 billion yuan to 2.271 billion yuan, which will increase by 1.684 billion yuan to 1.9 billion yuan compared with the same period last year, a year-on-year increase of 454.41% to 512.78%.
Shenma Co., Ltd. explained that the main reason for the expected increase in performance during the reporting period is that the prices of the company’s main products, cord fabrics, industrial yarns, and chips, have increased significantly in 2021 due to market reasons, resulting in a significant increase in profits compared with the same period.
Relying on the two-wheel drive measures of “increasing profits with innovative products” and “reducing costs with conventional products”, during the reporting period, Taihua New Materials fully leveraged the advantages of the entire industry chain and actively promoted the research and development of green, functional, differentiated and personalized products. Continuously optimizing the product structure, strengthening market development, and strengthening cost control, the company’s scale and brand effects have gradually emerged. At the same time, thanks to the “intelligent annual output of 120,000 tons of high-performance environmentally friendly nylon fiber project” gradually put into production, bringing the company’s main business income The growth and improvement in gross profit margin have significantly increased the company’s net profit.
Blum Oriental has been deeply engaged in the color spinning industry for many years and is a leading enterprise in the color spinning industry. It has advantages in customer resources, production capacity layout, and process technology, and has a stable leading position in the same industry. The performance forecast stated that the net profit attributable to shareholders of the listed company is expected to be 1.33 billion to 1.39 billion yuan, an increase of 263% to 280% year-on-year. The main reason for this forecast increase in performance is the comprehensive impact of factors such as the company’s overall production capacity returning to pre-epidemic levels in 2021, increased capacity utilization, increased orders, and growth in main business profits.
The main reason for the expected increase in Tongkun’s performance is that during the reporting period, the concentration of the polyester filament industry continued to increase, the prosperity gradually recovered, the downstream textile terminal consumption continued to recover, and the company’s differentiated, functional and other high value-added fiber product production capacity Enlarge; After the company’s joint-stock company Zhejiang Petrochemical Co., Ltd.’s “40 million tons refining and chemical integration project” project was put into operation, the production of each device has progressed smoothly, the operating load has steadily increased, the economic benefits have been significant, and the company’s overall profitability has increased significantly compared with the previous year. increase.
Cinda Securities research report pointed out that the overall demand in the textile industry is under pressure, but the demand growth of some “specialized, special and new” enterprises representing the positioning of the subdivided industries is expected to be relatively good. As the industry leader, orders are relatively sufficient, and the performance of leading high-quality companies has opportunities. Exceeded expectations.
Compared with the same period last year, Jinhong Group’s net profit attributable to shareholders of listed companies during the reporting period was 220 million yuan, turning losses into profits. In the same period last year, the company’s operating profit declined due to the impact of the COVID-19 epidemic. In this period, the epidemic factors have been basically eliminated, and the offline channel business has shown comprehensive recovery growth. After adjustment and integration, the TEENIE WEENIE brand has regained the power of endogenous growth. The brand power, commodity power and retail power have been significantly improved, driving continued growth in performance. The company’s strategy to promote digital transformation has achieved significant results. Online channels, especially the live broadcast business on the Douyin platform, have grown rapidly, and the proportion of online business has increased significantly.
Shenda Co., Ltd., which is also expected to turn losses into profits, had a net profit attributable to shareholders of the listed company of 30 million to 45 million yuan during the reporting period. One of the reasons for the change in performance in this period is the transfer of Shanghai No. 7 Cotton in 2020The total investment income obtained from 100% equity of Textile Factory Co., Ltd. and 100% equity of Shanghai Lida Garment Co., Ltd. is approximately 280 million yuan; the company transferred 100% equity of Eryin Company in 2021 and obtained investment income of approximately 400 million yuan, compared with 2020 The annual investment income from the transfer of subsidiaries increased by approximately 127 million yuan.
Apparel sector performance declines
Of course, many companies are still affected by factors such as the continuation of the global COVID-19 epidemic, the overall consumption environment, the continued rise in labor costs, and the adjustment of industrial structure. Industry insiders believe that leading companies in the textile sector are enjoying higher prosperity. Entering the fourth quarter, some brand apparel sectors lacked catalysts in terms of terminal data, and the full-year operating performance showed a downward trend.
From the perspective of brand apparel sector, during the reporting period of Anzheng Fashion, the net profit attributable to shareholders of listed companies will decrease by approximately 100 million yuan to 136 million yuan compared with the same period last year, a year-on-year decrease of 52.92% to 68.61%. First, the sales of the company’s clothing segment declined in the fourth quarter, and net profit after deducting non-attributed profits dropped by approximately 28 million yuan compared with the same period; second, the fourth quarter performance of the agent operation business continued to decline, affecting the current profit. Affected by the overall consumption environment and organizational changes and adjustments, Shanghai Lishang Information Technology Co., Ltd.’s agency operating business revenue and profits declined significantly, affecting the net profit attributable to shareholders of the listed company to fall by approximately 46 million yuan throughout the year. In addition, in 2021, Lishang Information’s optimization and adjustment of some cooperative brands also caused a certain decline in operating performance.
ST Rasha’s performance during the reporting period is expected to be loss-making. Affected by factors such as the external epidemic and tight cash flow of the company, the company continues to close offline loss-making stores. Due to the operating losses of closed stores and the one-time confirmation of decoration amortization and removal of cabinets, and other impacts, resulting in the company losing about 110 million yuan. In addition, it also includes financial institution debt interest and overdue penalty interest, as well as litigation cases that have been decided and not completed at the end of the reporting period. Due to the tight cash flow situation, the company’s new product purchases have decreased, and offline channel sales of goods have not been completed in the past. Mainly seasonal products, sales gross profit margin decreased year-on-year and the company’s ending inventory structure increased the inventory age of previous quarterly products.
One of the main reasons for GM’s pre-reduction in performance is tight international container positions, continued rise in shipping rates, fluctuations in the RMB exchange rate and other factors.
Tianchuang Fashion’s net profit attributable to shareholders of listed companies in 2021 decreased by 57.14 million yuan to 85.71 million yuan. The company has two main business segments. One is the fashion footwear and apparel business that is integrated into the entire industry chain with multiple brands; the other is the mobile Internet marketing business, which is mainly represented by the company’s wholly-owned subsidiary Xiaozi Technology and its subsidiaries. as a business entity. The announcement stated that in recent years, whether it is offline physical business, online Internet economic business, etc., competition and gaming in the existing market have become increasingly fierce.
Cinda Securities research report analysis believes that in the long run, China’s clothing industry needs to extend to high value-added marketing and design links, and high-quality domestic brands will promote industrial transformation and upgrading. In this process, return to the clothing products themselves and be optimistic about brands with competitive products, especially brands with cost-effectiveness advantages in mass casual clothing, functional advantages in sportswear and down jackets, and design advantages in high-end clothing.
</p
