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

In recent days, listed companies of textile and clothing have disclosed the mid-year performance report of enterprises. It is not difficult to see from the mid-year reports released by various companies that some companies have achieved good results in the first half of 2010, while others have been unsatisfactory. Many domestic securities investment institutions have also given the analysis of mid-term reports of relevant textile and garment companies at this time, with a view to providing investors with a reference.

Then, when the economy is gradually stabilizing and picking up, what kind of scenario is the listed textile and clothing company in the first half of this year?

Overall performance of textile and apparel industry is good

The performance of leading enterprises in the manufacturing category was generally higher than expected and the performance of brand-name companies grew steadily. Home textile companies mainly rely on rapid outreach expansion, and apparel companies rely more on endogenous growth and gross margin growth to bring about net profit growth.

Shenyin Wanguo Securities Company gave such analysis: In 2010, the key company's net profit increased by 37% year-on-year, in line with expectations. The securities company reviewed the 2010 first-half results of the key textile and apparel industry companies covered. The overall growth of the industry was rapid, with 60% of the key company's net profit growth exceeding 30%, and net profit growth of 37% year-on-year, in line with its The projected 38% growth rate in the medium-term outlook.

According to Shenyin Wanguo analysts, manufacturing companies reported more than expected performance. The reason is that the accumulated export value of textile and clothing from January to July this year increased by 22.9% year-on-year. The export volume in the first half of the year was higher than expected. As a result, the interim results of manufacturing leading enterprises surpassed expectations, and Lutech A, Huafu Spuntex, and Weixing Stock Exchange The growth rate is above 40%.

In addition, the performance of brand-name companies has grown steadily, the growth rate of home textiles is 30% to 60%, and the growth rate of apparel is 30% to 40%. From the perspective of growth mode, home textile companies mainly rely on rapid expansion. Three companies, including Mengjie Home Textiles, Fu Anna, and Luolai Home Textile, accounted for 6% to 10% of the total number of open stores in the first half of the year. Clothing companies are even more. Rely on endogenous growth, as well as net profit growth from the increase in gross margin. For example, in the first half of the year, the number of new franchise stores increased, which accounted for about 14% of the total number of franchise stores, which represented an increase of about 5%. The structure of seven wolves stores was adjusted, and the number of directly operated stores increased.

From the mid-year report released by various companies, among the companies that reported higher-than-expected results: Luolai Home Textiles, Xinao Bird, Luthai A, Weixing, Pathfinder; companies with lower-than-expected results include: Mengjie Home Textiles, and Saturdays. Shanghai Jahwa.

At present, the home textile company's 2010 PE (P/E ratio) is 44 to 48 times. From the growth rate of the medium report, Rolls-Royce Home Textiles is the best performing company in the industry. The annual performance of Rollei is still higher than expected. Clothing companies correspond to 30 to 36 times PE in 2010, and it is expected that there will be room for growth for apparel companies.

It is worth mentioning that, in the mid-year report, Smith Barney and Midrand announced the growth of the third quarter, and the growth rate of the two companies in the third quarter was higher than that in the second quarter. In the first half of the year, the company's total operating income reached 2.542 billion yuan, a year-on-year increase of 39.49%. After deducting non-recurring gains and losses, its net profit was 27.93 million yuan. Although the year-on-year decrease was 85.92%, the third quarter may become a turning point in performance. From January to September, net profit increased by 0 to 20%, which is a reversal type company. Before the interim report, it was based on an emotionally-driven rise in performance. After the growth situation became clear, it would usher in a return to value. At present, Baoxiu has a low valuation, which corresponds to 30 times PE in 2010. The third quarterly report is expected to grow by 40 to 60%, and the annual growth rate is lower than 40%.