In The Three Quarter, The Red Light Of Clothing And Textile Industry Rose, And Net Profit Fell Sharply.

Weak demand and rising labor costs kept 20% growth.

Falling into the overall downturn, the three quarter net profit of textile companies plummeted 50% and the red light of clothing industry was on the rise.

The "singles day" shopping and shopping culture launched by Taobao has been passed to the major businesses under the online and offline businesses.

The half off discount of full dress has been less attractive than before.

Red men and green girls, multicolored neon.

I also want to take advantage of the strength of commercial "shopping spree", based on the three quarterly report of clothing listed companies, to conduct research and investigation on the clothing industry which is easy to be ignored by every investor.

The risk of the clothing industry is self-evident. First, it is complex enough, partly belonging to the downstream of chemical industry, and partly related to the price of agricultural products such as cotton. Secondly, it is sensitive to rising costs and sensitive to downstream demand, thus forming a dual character of cyclical and consumer. Once again, the clothing industry has its own attributes, and inventory is its biggest natural enemy, because the process of inventory almost means that its profits shrink.

When the crisis hit, it was silent.

Net interest rate decreased slightly by 1.5%

Let's take a look at the whole situation first.

In the clothing industry classification, 79 clothing and textile companies have eliminated ST companies, and the main companies such as Shanshan and YOUNGOR have left 68 major textile and garment categories.

It shows the changes in gross margin of sales of listed companies over the past five years and the related changes in the three quarter of this year.

Overall, net sales in the third quarter decreased by about 1.5% compared with the same quarter, and net profit fell by 34% compared with the same period last year. The stock price rose by 7%. compared with the same period last year.

The decline in gross profit from the downturn in the garment industry is not obvious. Compared with the 68 companies, the gross profit margin in the three quarter of this year is not much different from that in 2011, with a gross margin of around 25%.

And subdivision, the gross profit margin of textile manufacturing is even more obvious. As the upstream raw material, the price of raw materials increases the compression of profit space more obviously.

Moreover, the prime time for textile manufacturing to export at low labor costs has passed. The deterioration of the economic environment in Europe and the United States has aggravated the downturn in the textile manufacturing export garment industry.

At the same time, because of the high price of raw materials and the low price of finished products in the first half of 2012, the gross margin of gross domestic product (A) (000726.SZ) and Huafu color spinning (002042.SZ) decreased by more than 7 percentage points in the first half of last year.

Relatively speaking, clothing products companies are relatively good, especially men's clothing.

Among them, 002029.SZ and 002154.SZ, which had been listed for more than 5 years, also hit the highest quarterly gross profit margin of nearly five years in the three quarter of 2012.

However, the relative stability of gross margins is not enough to cover up the crisis in the clothing industry.

This may be more convincing by the company's net profit.

A direct attack on the crisis -- net profit fell sharply

The third quarter

Net profit fell 34% compared to the same period last year, while textile manufacturing was more serious than the 50% decline. Clothing home textiles category declined by 10.28%.. In the first three quarters, net profit attributable to parent shareholders decreased by 18% compared with the same period last year, while textile manufacturing declined by 36.38%, while apparel home textiles increased slightly by 0.63%.

According to customs statistics, textile exports declined further in the 1-8 months of this year, with a total export of US $161 billion 990 million, a decrease of 0.7%, of which 62 billion 510 million US dollars in textile exports and 99 billion 480 million US dollars in clothing exports, all declined. The increase in orders for autumn and winter in the month of 0.7%.9 has made exports warmer. Therefore, the cumulative export volume of textiles and garments has been 187 billion 100 million US dollars for 1-9 months, compared with the same period last year, with a slight increase of 0.5%, of which the export of textiles was 71 billion 50 million dollars, and clothing exports were 116 billion 60 million dollars, with a slight increase of 0.2% and 0.7%. respectively.