Textile and garment companies have restructured

Wind data shows that as of October 16, there are 50 listed companies in the textile and apparel category announced the third quarter performance forecast. Among them, 27 pre-jobs (including renewal companies). As the situation of low demand and high cost has not improved, the growth of the industry is still weak. It is worth noting that since the beginning of this year, textiles and clothing have been the hotbed of M&A and restructuring, which has led to the growth of many companies' performance.

Terminal requirements have not been restored

Wind data shows that of the 50 companies that announced the third-quarter performance forecast, there were 3 pre-additions and 2 losses, and 16 and 6 slightly-increased and renewal companies, respectively, and a total of 27 pre-joy enterprises, accounting for a ratio of 54%. Of the companies with declining performance, eight companies expect a loss in the first three quarters, and seven companies will reduce.

The growth of main business and M&A and restructuring are the main driving forces for the growth of the performance of some companies. Shandong Ruyi estimated that the net profit for the first three quarters was 13.26 million yuan to 13.5 million yuan, and the net profit increased by 450.57% year-on-year to 460.54%. Shandong Ruyi said that the company adjusted and optimized product structure, increased efforts to develop high-end markets and brand customers, and increased gross profit margins. Pathfinder is expected to achieve a net profit of 178.40 million yuan in the first three quarters, an increase of approximately 26%. The company stated that through the launch of the “product + service” Internet transformation strategy, it promoted O2O's online and offline resource integration, and the company’s operating revenue continued to maintain a stable growth of more than 20%, while strictly strengthening the budget management of various expenditures.

The growth of more companies comes from mergers and acquisitions. The biggest year-on-year growth in net profit was the new Yanfeng that had changed its main business after reorganization. The main business of the company has been changed to the R&D, production and sales of phosphorus compound fertilizer. The net profit is expected to reach 405 million to 435 million yuan, and the net profit will increase by 1177.92% to 1257.77% year-on-year. The company stated that after the completion of the asset restructuring, the main business was changed from the original textile printing and dyeing and textile trading business to the R&D, production and sales of phosphate compound fertilizer. Kaikai Industrial expects that the net profit in the first three quarters will increase by 215% year-on-year. During the reporting period, the company transferred a 3.95% stake in Shanghai Huatuo Pharmaceutical Technology Development Co., Ltd., which is a share company, resulting in a substantial increase in net profit.

There are also some corporate profits growth from the sale of gold production and government subsidies. HTC Tech expects net profit to be from 85.36 million yuan to 105.059 million yuan, with a range of 30% to 60%. The company disposed of some of the stocks of Haining China Leather City Co., Ltd., and its investment income increased.

Brokerage analysts said that, as a whole, terminal demand has not yet fully recovered and the industry is still in the destocking cycle. The data shows that due to the sustained low demand, the retail sales of apparel, hats, caps, needles, textiles and clothing above the designated size from January to August all increased by 10.4% year-on-year, and the growth rate was 1.7 and 1.6 percentage points lower than that of the same period of last year.

However, some sub-sectors show higher growth rates. Semima expects net profit to increase by 0%-30% year-on-year in the first three quarters. The company stated that the improvement of the casual wear business and the rapid development of the children's business have contributed to the company's sales growth.

Cotton price favorably short-term cash

The cotton spinning industry is the "hardest-hit area" with declining performance. In recent years, due to the huge price gap between domestic and foreign cotton, domestic cotton spinning enterprises have generally faced high raw material costs and the international competitiveness has been declining. Some companies have suffered continuous losses. With the advancement of cotton target price subsidy system, the cost of cotton used by cotton spinning enterprises will decrease, but the price of the products may decline, and the company's performance will remain under pressure.

Xinye Textile expects the net profit for the first three quarters to be between 5.070 and 63.30 million yuan. The company stated that due to the low demand in the textile market, the slow growth of domestic demand and the increase in the cost of production factors, the net profit attributable to the shareholders of the listed company decreased by 0%-20%. Similar to this situation are Changshan shares and Huamao shares.

And the continuous loss of performance of the German cotton stocks, an important step in planning for many years of transformation. As the textile business was affected by the continuing downturn in the domestic and international markets, product orders, sales prices, gross margins, operating results, etc. were all lower than expected. Demian shares forecast continued losses in the third quarter, and the net profit attributable to shareholders of listed companies was -35 million. Yuan to -30 million yuan. Since Demu’s share in 2013 has suffered a loss, reversing losses has become a top priority. On August 26th, after the increase of the regulatory agency's approval, Demian shares decided to amend the company name and increase investment in new energy industries and Internet information industry, and intends to sell assets and rent textile equipment, in order to reverse losses and avoid retreats. city. At the same time, the company acquired 100% equity in the Internet lottery company Beijing Hehe Yongxing Technology Co., Ltd. with its own capital of 27 million yuan.