As of November 3, the disclosure of financial reports of Shanghai and Shenzhen textile and apparel listed companies in the first three quarters of 2018 is coming to an end. Statistics show that in the first three quarters of 2018, the performance of the textile and apparel sector remained stable. In the first three quarters, 89 textile and apparel listed companies achieved operating income of 217.778 billion yuan, compared with 194.871 billion yuan in the same period of the previous year, a year-on-year increase of approximately 11.75%; net profit of 17.669 billion yuan, compared with 16.691 billion yuan in the same period of the previous year, an increase of approximately 4.6%.

Textile manufacturing sector is growing steadily

In terms of sectors, in the first three quarters of 2018, 38 textile manufacturing listed companies achieved operating income of 72.669 billion yuan, compared with 66.836 billion yuan in the same period of the previous year, an increase of 8.72% year-on-year; net profit of 48.759 billion yuan, compared with the same period last year. 46.408 billion yuan, an increase of about 5.06%. According to the analysis of Shenyin Wanguo Securities Research Report, the net profit growth of the textile manufacturing sector in the first three quarters was diverging: the operating income of the textile manufacturing sector increased steadily, and the growth rate was divided. In the first three quarters, the year-on-year growth rates of wool, cotton, silk, printing and dyeing, accessories and other textiles were 14.16%, 7.00%, 11.46%, 5.93%, 13.09%, and 9.18% respectively, of which the growth rate of wool and auxiliary materials was higher. It has improved throughout the year and the rest of the growth rate has declined. In terms of net profit, the growth rate of the sub-industry in the textile manufacturing sector is clearly differentiated. In the first three quarters, the growth rate of net profit of cotton spinning, silk, printing and dyeing increased to 13.31%, 19.08% and 20.60% respectively compared with the annual growth rate of the previous year. The growth rate of wool, accessories and other textile net profit decreased by 22.33% compared with the whole year of last year. 1.46%, 36.22%.

In the first three quarters of 2018, 51 garment and home textile listed companies achieved operating income of 127.448 billion yuan, compared with 117.86 billion yuan in the same period of the previous year. The net profit attributable to owners of the parent company was 10.305 billion yuan, compared with 10.026 billion yuan in the same period last year.

According to the analysis of Shenyin Wanguo Securities Research Report, the growth rate of revenue and net profit of apparel and home textiles sector has slowed down: in the first three quarters of 2018, the revenue of casual wear, women's wear and home textiles maintained rapid growth. Among them, casual wear maintained a relatively stable revenue growth of 18.73%; the growth rate of women's wear was 12.52%, and the growth rate declined compared with last year; home textile achieved a revenue growth of 14.22%; men's wear achieved a revenue growth of 9.47%. Looking at the quarter, the overall social retail growth rate was down, which led to a significant slowdown in the growth rate of apparel and home textiles in the third quarter.

In terms of net profit, the growth rate of casual wear, home textiles, men's wear, shoes and hats in the first three quarters has rebounded compared with last year. Among them, casual wear and home textiles achieved net profit growth of 24.10% and 23.58% respectively in the first three quarters, and women's net profit of 8.73%. Growth, net profit of men's wear, shoes and hats, and other clothing still fell year on year. In the quarterly view, the clothing and home textiles sector saw a significant decrease in net profit in the fourth quarter of last year, or related to destocking. In the first quarter of this year, the growth rate recovered with the change of the Spring Festival, and in the second and third quarters, the growth rate of retail sales with social consumer goods was synchronized. Slow down.

The performance of casual wear is bright and eye-catching

Among the listed textile and apparel listed companies, the net profit in the third quarter still has a slowing trend. The 32 companies have only increased their net profit growth rate in the third quarter, such as Haishu Home, Senma Apparel and Youngor. The company maintained a positive growth trend in the third quarter. The three companies in Japan Broadcasting Fashion, Modern Avenue and Mugaodi did not increase their profits. The net profit was 53.64%, 51.12%, and 17.96%, respectively. The loss rate was significantly higher than that of the mid-year report. The reported net profit loss of 28.79% increased to 53.64%. La Chapelle, VIP bird, Hongdou shares and Pathfinder four companies suffered double losses in revenue and net profit. Among them, the largest loss of revenue was pathfinders, down 36.48% year-on-year; the largest loss of net profit was for the birds, which fell as much as year-on-year. 89.14%.

Among them, the enterprises with revenues exceeding 10 billion yuan in the first three quarters were Haishu's home, and there were 3 enterprises with revenues exceeding 5 billion yuan, namely, Senma clothing (revenue of 9.764 billion yuan) and La Chapelle (battalion). Received 6.201 billion yuan) and Smith Barney (revenue of 5.547 billion yuan). There were 2 enterprises with net profit exceeding 1 billion yuan in the first three quarters, namely Haishu Home (net profit 2.628 billion yuan), Senma clothing (net profit 1.227 billion yuan); 15 companies with net profit exceeding 100 million yuan, respectively Youngor, Gesell Fashion, Jiu Mu Wang, Taiping Bird, Ge Lisi, Anzheng Fashion, La Chapelle, Seven Wolves, Biyin Lefun, Langzi Shares, Red Bean Shares, Starter Shares, Vignas, Souti, Baibaolong . According to Dongguan Securities Analysis, Haishu Home, Senma Apparel, Youngor, etc. have adjusted the company's business channels to further improve store operation efficiency and explore market growth space. Meibang apparel and La Chapelle have increased their efforts to develop into third- and fifth-tier cities. From the perspective of performance, La Chapelle seems to have failed to enjoy the dividend. In addition, the inventory has a certain growth momentum, and the pathfinder's purchase planning and sales expectations are biased, resulting in a substantial purchase of goods exceeding the actual sales demand.

For the reasons for the change in net profit attributable to the company, the bird said that first, due to the rising cost of production factors such as raw materials and labor costs, the output of the independent bird brand of the company has decreased compared with the same period of the previous year, resulting in an increase in the fixed manufacturing cost per unit cost. The second is to provide subsidies, commodity discounts and other support policies to replace short-term financial support, further diluting the gross profit of the VIP bird brand. Third, the laying of retail outlets under the international brand of Jiezhixing led to an increase in operating costs during the reporting period. Fourth, the operation and R&D of the new brand of the VIP bird led to the increase in management fees, R&D expenses, and financing costs, which led to the continuous increase in financial expenses.

The traditional faucet "Double 11" power is more optimistic

Under the background that the overall performance of textile and apparel listed companies has improved in the third quarter, some of the disclosed annual results of the 2018 report are gratifying. At present, 37 textile and apparel listed companies have disclosed the 2018 annual report performance forecast, and 29 companies have achieved positive results, accounting for nearly 80%. Among them, Youngor’s annual net profit increased by 1000% year-on-year, which is expected to reach 10 times, ranking first. Eight companies including Shinur, Baoxin Bird, Mengjie, Douyi, Huasi, Xingye Technology, Smith Barney, and Saturday are also It is estimated that the annual net profit will double by 309.33%, 260%, 210%, 140%, 126.51%, 120%, 116.4% and 108.52%, respectively. In addition, the annual net profit of Ruyi Group, George White, Senma Apparel, Jiaxin Silk, Biyin Lefen and other companies are also expected to increase by 50% and above, respectively, 76.22%, 60%, 50%, 50%, 50% .

This year's "Double 11" e-commerce platform sales situation provides support for the annual report pre-history. In the third quarter, the sportswear and apparel sector and the casual apparel sector, which have a high degree of prosperity, have outstanding online sales during the “11” period. Anta Sports and Li Ning "Double 11" e-commerce sales flow growth rate of more than 60%, the sales of e-commerce sales of multi-category and multi-brand operated brand companies represented by Senma Apparel and ANTA Sports maintained a good growth rate, "Double 11 "Sales flow growth rate maintained a high growth. Industry analysts believe that the traditional offline strong brand performance is better than the Amoy brand, online sales competition is increasingly fierce, the future traditional strong leading brand online channel still has a competitive advantage. These have become important support for the strong upside of the sector.

For the future development trend of the textile and apparel sector as a whole, Guosheng Securities believes that after the adjustment of high-quality enterprises in the early stage, the quality of competitiveness in the product end, brand operation strategy and channel layout has been realized, and the sales of high-end brand companies and sports shoes and apparels are leading terminals. Performance is better than the industry average.