Since the beginning of this year, the textile and apparel sector has performed well, with the overall stock price rising 18.99%, far outperforming the Shanghai Composite Index during the same period (a cumulative decline of 1.36% during the year), ranking It ranks at the top of Shenwan’s first-level industry growth list. Among them, Jinhong Group’s stock price rose the highest in the industry, reaching 316.15%; followed by Zhongyin Cashmere Industry’s stock price rose 179.25%, Jinfa Rabbi’s stock price rose 171.77%, Meibang Apparel’s stock price rose 169.03%, and *ST Global’s stock price rose 133.98% %, the share price of Langzi shares increased by 115.27%, and the share price of *ST Rasha increased by 113.01%, both of which doubled their share prices during the year.
In addition, Yingfeng Shares, Zhejiang Natural, The stock prices of six companies, including Peacebird, Ribo Fashion, Baoxiniao and Biyinlefen, all increased by more than 50% during the year. Among them, Yingfeng shares rose by 70.59%, Zhejiang Nature’s stock price rose by 67.42%, Peacebird’s stock price rose by 67.35%, and Ribo Fashion’s stock price rose by 70.59%. The share price increased by 64.61%, the share price of Annunciation Bird increased by 56.81%, and the share price of Biyinlefen increased by 50.25%.
Textile and apparel industry-related data are improving, according to data from the National Bureau of Statistics.
Knitted garment exports increased by over 60%
From January to May, knitted garment exports were 231.6 billion, a year-on-year increase of 60.6% and an increase of 14.8% over the same period in 2019. In May, knitted clothing increased by nearly 90%, mainly because knitted clothing orders were mostly among the reshoring orders caused by the overseas epidemic. Among them, the exports of cotton, chemical fiber and wool knitted garments increased significantly, with increases of 63.6%, 58.7% and 75.2% respectively. Silk knitted clothing increased slightly, up 26.9%.
Exports of home and sportswear products maintain strong growth
From the perspective of clothing categories , the impact of the COVID-19 epidemic on the social interaction and commuting of consumers in major foreign markets is still continuing. From January to May, exports of suits and ties fell by 12.6% and 32.3% year-on-year respectively. Exports of home clothing such as robes and pajamas increased by nearly 90% year-on-year, and casual suits increased by 106%.
Guangdong surpassed Zhejiang and returned to the first place, while Shandong and Fujian grew rapidly
1-5 In September, Guangdong’s total apparel exports surpassed Zhejiang Province and returned to the first place, with a year-on-year growth of 78.8%, exceeding the national average growth rate, accounting for more than one-fifth of the country’s share. Zhejiang and Jiangsu experienced smaller growth rates, with increases of 28.5% and 29.3% respectively, while Shandong and Fujian experienced larger growth rates, with increases of 54.6% and 63.2% respectively. The exports of the central provinces and cities of Hebei, Jiangxi and Hubei grew rapidly, with growth rates exceeding 100%. Compared with the same period in 2019, garment exports from Guangdong, Shandong and Fujian increased by 19.7%, 37% and 25.4% respectively. Zhejiang and Jiangsu have not yet recovered to the export scale of 2019, and still decreased by 1.8% and 0.7% respectively compared with the same period in 2019.
“Since the beginning of this year, the textile and clothing sector has experienced a major rebound. The main reasons come from two aspects: on the one hand, because the domestic epidemic situation is better than that abroad, which has caused many Foreign orders are returning to China; on the other hand, driven by the Xinjiang cotton incident, the rise of domestic clothing brands has accelerated. China is both the largest textile and clothing producer and the largest consumer, but most international brands are in Europe and the United States, mainly ours Marketing and management cannot keep up, but now the self-media era has subverted the traditional marketing model and given us the opportunity for domestic clothing and textile companies to rise rapidly.” said Liu Youhua, research director of Private Equity PaiPai.com.
In the eyes of major securities firms, the recent ” The release of the “14th Five-Year Plan” Development Outline for the Textile Industry is a huge benefit to the textile and apparel industry, allowing it to grow deterministically. Industrial Securities believes that with the development trend of digitization and full-chain informatization of the textile and apparel industry chain, companies will be able to better connect various links in the supply chain and achieve inventory management and precision marketing. At the same time, with the trend of smart manufacturing leading the way, brand apparel companies will see a turnaround in the growth of domestic brands in the second half of this year. Textile manufacturing will also usher in a period of capacity saturation due to the impact of Indonesia’s transfer of orders. We are optimistic that the sector will usher in structural growth in the second half of the year.
Liu Youhua also said, “The ’14th Five-Year Plan’ for the textile industry has pointed out the direction for the intelligent development of the textile industry and laid a foundation for the high-quality development of the textile industry. . In the future, as the intelligent development process of the industry advances, it will help improve the production efficiency of the textile industry, reduce production losses, and reduce production labor costs, thereby improving the overall performance of the textile and garment industry.”
In fact, since this year, funds have also begun to invest in some textile and apparel stocks. Statistics show that since this year, a total of 17 textile and apparel stocks have shown a net inflow of funds, attracting a total of 3.928 billion yuan in funds. Jujie Microfiber and Xinhe were the most popular stocks during the year, reaching 768 million yuan and 175 million yuan respectively. Two stocks, including Zhenai Meijia and Watson Technology, both received large orders of more than 100 million yuan during the period.
With the support of the continued recovery of the industry, the performance of listed companies in the textile and apparel industry is generally good. “Securities Daily” reporters found based on Flush data statistics that among the 98 listed companies in the textile and apparel industry, 76 companies implemented sales in the first quarter of this year.�Net profit increased year-on-year, accounting for nearly 80%. So far, 15 companies have taken the lead in disclosing their performance forecasts for the first half of 2021, and 7 companies have promising results.
Wang Xuan, chairman of Chengen Capital, said, “‘National Trend’ has boosted the reputation and positioning of several major domestic brands in the minds of consumers. In the recent ‘618 ‘In the e-commerce promotion activities, the growth of local sports brands is very eye-catching, which is also an important catalyst for the recent rise of the sector. We are optimistic about the leading sportswear companies in textile and apparel in the long term. In addition to the leaders, we can also pay attention to the second-tier companies with lower valuations. A high-quality textile and apparel enterprise.”
In fact, since this year, the market performance of the textile and apparel sector has been outstanding. Benefiting from the improvement of the domestic epidemic situation, clothing orders have returned to the country, and after the Xinjiang cotton incident, domestic clothing brands have taken advantage of the situation to rise, and domestic textile and clothing companies are ushering in a new wave of development opportunities.
In the context of the overall recovery of the industry, the development of domestic clothing brands will have great potential.
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