In the first half of 2010, the performance of listed companies in textile and clothing industry was good (middle)

The home textile industry is experiencing rapid growth, driven by rising domestic consumption levels and evolving consumer habits. Additionally, the real estate sector and wedding-related demand have further fueled this expansion. Despite the challenges posed by the financial crisis, the industry is expected to maintain a robust growth rate of approximately 20% in the coming years. In the A-share market, the home textile sector is dominated by three major players: Mengjie, Anna Ana, and Rollei, collectively forming the "three pillars" of the industry. These companies have shown strong performance, particularly in the first half of 2010. Mengjie Home Textiles reported impressive results during the first half of the year, with operating revenue reaching 347 million yuan, up 34.12%. Its operating profit rose by 90.35% to 34.125 million yuan, while net profit reached 28.3574 million yuan, an increase of 32.75%. This translates to a profit of 0.54 yuan per share. The company's gross margin improved by 4.73% year-on-year, primarily due to a 5-10% price hike on new products, increased sales of high-margin mattress series, and a rise in direct revenue from 23.79% to 28.35%. Mengjie also projected that net profit for the first nine months of 2010 would be between 20% and 40% higher than the same period last year. Analysts at Guojin Securities noted that the company has strengthened its brand presence through its listing, enhancing both franchisee negotiations and consumer perception, which supports future expansion. Rolls-Royce Home Textiles (Rolle) also performed strongly, with total revenue of 662 million yuan and net profit of 77 million yuan in the first half of the year—up 59.43% and 58.96%, respectively. Earnings per share reached 0.55 yuan. The recovery of the domestic textile retail market was a key driver behind this growth. Major brands like Rolle, Disney Monk Mark, and Sheryl saw significant sales increases, with some growing over 100%. Analysts expect the company’s net profit growth to exceed 40% this year and remain above 30% in the following two years. Fuanna achieved operating revenue of 453 million yuan and a net profit after deductions of 47.95 million yuan, up 40.25% and 48.34% year-on-year. The company earned 0.46 yuan per share, meeting expectations. Analysts attributed the strong performance to the recovery of the retail market and faster channel expansion. Fuanna adjusted its strategy in the second half of 2009, focusing more on franchise-based sales. During the reporting period, affiliate sales accounted for 59.25% of total revenue, up 5.26 percentage points compared to the previous year. The Xinerle brand saw a revenue jump of 88.66%, with a gross margin increase to 43.17%. Looking ahead, Fuanna plans to expand its channel network in second- and third-tier cities, reduce market gaps, and improve store quality. The company expects net profit for the first nine months of 2010 to grow between 20% and 40% compared to the same period in 2009. Since 2003, the domestic home textile market has grown at a compound annual rate of about 15%. By the end of 2009, the market size had reached nearly 60 billion yuan. It is projected that the total production value will reach 1.5 trillion yuan in 2010, with the bedding segment becoming one of the most promising sub-sectors in China’s textile industry. Industry experts believe that as domestic consumption continues to rise and consumer behavior evolves, along with ongoing support from real estate and weddings, the home textile industry will sustain a growth rate of around 20% in the coming years.

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