As of May 24, the first quarter reports of 2021 for the 77 textile and apparel listed companies in Shanghai, Shenzhen and Hong Kong that reporters are following have been disclosed. The performance report shows that the textile and apparel sector performed strongly. Institutions generally pointed out that the textile and apparel industry continued to decline due to the impact of the epidemic in 2020, but the decline narrowed quarter by quarter, and the performance in the first quarter of 2021 increased significantly year-on-year. As the domestic epidemic situation stabilizes, market consumer confidence has rebounded, overseas downstream retail sales have recovered, overseas orders from Southeast Asia and other countries have gradually returned, and the textile and apparel industry has achieved sustained recovery.
Industry prosperity has rebounded strongly
The first quarter reports of 2021 for these 77 listed companies in the textile and apparel industry It shows that 51 companies’ operating income and net profit attributable to shareholders of listed companies both increased, while 10 companies’ operating income and net profit attributable to shareholders of listed companies both decreased.
Based on the growth rate of net profits attributable to shareholders of listed companies, a total of 60 companies saw net profit growth, and 30 companies saw net profit growth exceeding 100%.
The net profits attributable to shareholders of listed companies of Jinhong Group, Zhongtai Chemical, Semir Apparel, Jinlun Co., Ltd. and Langzi Co., Ltd. increased rapidly, reaching 15661.80%, 2521.60%, 1916.78%, 1754.13%, respectively. 1209.16%; the net profit attributable to shareholders of listed companies increased by more than 500 for Sanfangxiang, Jujie Microfiber, Shen Textile, Jinfa Rabbi, Tanaka Seiki, Xinxiang Chemical Fiber, Tianchuang Fashion, Jiuding New Materials, ST Zhongrong, and Ordos %, respectively 949.13%, 889.15%, 843.09%, 812.72%, 700.52%, 570.00%, 550.01%, 529.81%, 511.10%, 502.46%; Pioneer New Materials, Xunxing Shares, Cixing Shares, Taihe New Materials, The net profits attributable to shareholders of listed companies of Sinomach Seiko, Fengzhu Textile, Dongfang Shenghong, Huafeng Microfiber, Baoxiniao, Dongfang Ventures, and Meibang Apparel increased by more than 150% to 500%, respectively 319.45%, 304.49%, and 247.71 %, 238.47%, 236.13%, 212.90%, 205.29%, 194.85%, 177.89%, 161.64%, 155.41%.
Based on the decline in net profits attributable to shareholders of listed companies, a total of 12 companies saw a decline in net profits. The net profits attributable to shareholders of listed companies of Souyute, Jiaxin Silk, ST Busen, Xinlong Holdings, and Shinur dropped by more than 50%, to 290.48%, 130.92%, 110.93%, 84.42%, and 73.53% respectively.
Shanghai Shenyin & Wanguo Securities analysis believes that considering that the domestic epidemic situation still recurred on a small scale in January this year, some listed textile and apparel companies still show a trend of delayed recovery. But on the whole, China has controlled the epidemic well, recovered production quickly, has complete supporting domestic industrial clusters, and has a high-quality and complete industrial chain in the supply of raw materials, fabrics and auxiliary materials. Suppliers with better delivery capabilities are more likely to win the favor of brands in the long term. . At the same time, with the recovery of market consumer confidence, the prosperity of the textile and apparel industry has also rebounded strongly.
Leading companies achieve high growth
Looking further, many leading companies have achieved impressive growth in a single quarter. The net profit of Jinhong Group, which has experienced rapid growth and strong growth momentum, is 15661.80% attributable to shareholders of listed companies. The reasons for the performance changes show that sales declined due to the epidemic in the same period last year, and sales in this period have resumed rapid growth.
During the reporting period, Zhongtai Chemical’s net profit attributable to shareholders of listed companies increased by 2521.60%. The reasons for the performance changes showed that the sales volume and selling price of major products increased. The company effectively carries out operation and management work in accordance with the annual business plan and continues to improve and strengthen its main business. In the first quarter, we produced a total of 493,900 tons of polyvinyl chloride resin, 352,200 tons of caustic soda (including self-use), 148,300 tons of viscose fiber (including self-use), 76,700 tons of viscose yarn, 677,000 tons of calcium carbide, and generated 3.649 billion kWh of electricity. .
The performance in the first half of last year was affected by the epidemic. Semir Apparel, which had a low base, achieved business growth in the first quarter of this year, and the net profit attributable to shareholders of listed companies increased by 1916.78%.
The net profit of Jinlun shares attributable to shareholders of listed companies increased by 1754.13%. The main reason for the change in performance was that the same period last year was mainly affected by the new crown epidemic, and some subsidiaries were shut down for a long time, resulting in a decrease in production and sales. More, and this period has fully returned to normal.
Langzi Co., Ltd.’s women’s clothing business has reversed its losses from last year and achieved profitability. In the first quarter, the net profit attributable to shareholders of listed companies increased by 1209.16%. In addition, it also benefited from the increase in the scale of Langzi Co., Ltd.’s medical beauty business. Rapid growth has brought about continuous improvement in the company’s overall performance. This year, Langzi Co., Ltd. plans to seize the development opportunities of the medical beauty industry on the basis of consolidating and enhancing the competitiveness of the fashionable women’s clothing industry, and accelerate the regional deepening and national layout of the medical beauty business.
Domestic brands have an opportunity to rise
From the perspective of different industries, the leading position of upstream textile manufacturing is stable, and the demand for downstream orders fluctuates significantly before and after the epidemic. The leading manufacturing industry can both withstand stress tests and quickly resume production. Under the trend of streamlining brand supply chains, small and medium-sized production capacity is being cleared at an accelerated pace. .
Listed companies in the home textile category took the lead in returning to growth. Leading brands such as Fuana, Duoke, and Mengjie benefited from their early deployment of e-commerce business to drive performance growth, and the proportion of e-commerce product sales revenue exceeded expectations.
Listed apparel companies, which were deeply affected by the epidemic and dragged down their performance, turned the epidemic into an opportunity in the first quarter and experienced strong growth. Especially when the consumption boom of domestic products began to emerge, the marginal performance improvement was obvious. Hot events in the early stage gave domestic brands an opportunity to rise. Judging from the sales data of the Tmall platform in March, the website transaction amounts of Anta Sports and Li Ning in March continued their high year-on-year growth.��, an increase of 50% and 100% respectively.
Haitong Securities analysis believes that clothing, as a category with high online penetration, will benefit from the development of new tools such as live broadcasts. The main reason is that the peak of the epidemic in China has passed, and stores that were suspended in the early stage have restarted. The impact of the epidemic Gradually weakening; apparel companies are actively deploying online channels and launching small programs, micro-malls and other tools to increase consumer stickiness. At the same time, the global epidemic situation has accelerated the reshuffle of the industry. Leading high-quality textile companies with strong performance and resilience will recover quickly and achieve sustainable long-term growth. </p
