Cotton Textile Industry: Embracing Dawn Through Night

< p > 2012, high inventory and internal and external Khmer price difference hijacked the whole domestic < a href= "http://www.91se91.com/news/" > cotton textile industry < /a >, cotton textile enterprises all loss, according to 2012 annual report statistics, the annual operating income fell 2.68%, and net profit fell 34.67% over the same period.

< /p >

< p > Southwest Securities analyst Xu Yongchao believes that there are two reasons for such dismal performance in 2012: first, last year, domestic cotton prices fell, businesses went to inventory, discounted sales, and cut profits.

Secondly, the difference between cotton price at home and abroad last year was as high as 6000 yuan / ton, which exceeded the cotton price range of normal profit of enterprises. Under normal circumstances, cotton price difference was over 5000 yuan / ton, and enterprises faced losses.

< /p >

< p > Xu Yongchao said: "the export of cotton textile enterprises is relatively large, such as the export profit of Lu Tai A, which is one of the leading cotton spinning enterprises, accounts for 83.4% of the total profit. However, cotton spinning is located at < a target=" _blank "href=" http://www.91se91.com/ "> textile > /a > a target=" _blank "" target= ">" clothing "industry. Chinese enterprises have no pricing power in the international cotton yarn market, so the cost of high priced cotton in domestic cotton spinning enterprises is difficult to pass on to the downstream clothing enterprises at home and abroad. Once the high cotton price is high, it will directly affect the performance of the industry."

< /p >

< p > the data of the first quarter of this year show that the cotton textile industry has begun to go out of the trough.

Wind statistics show that in the first quarter, the total revenue of cotton textile industry increased by 8.38% compared with the same period last year, and net profit increased by 49.09% compared to the same period last year.

Sales gross profit also increased from 13.46% last year to 14.05% in the first quarter.

< /p >

< p > "we believe that < a href=" http://www.91se91.com/news/index_c.asp "> cotton price < /a > narrowing is a long-term trend, and cotton spinning enterprises have basically finished their inventory after the fourth quarter discount sale last year." Wang Ting ", the core analyst of Haitong Securities consumer group, believes that the cotton textile industry is in the early stage of the new round of market speculation and the initial stage of market outbreak, and the subsequent market can be expected.

< /p >

< p > April, cotton price difference between 3600-4000 yuan / ton, compared with last year narrowed obviously.

US Department of agriculture data show that the sowing area of US cotton may decline, cotton production area weather is abnormal, Brazil's second major cotton growing areas suffer from insect pests, and the growth prospects are worried. This is exacerbated by the market's expectation of rising international cotton prices.

Domestic cotton prices are stable, and the rising price of foreign cotton will benefit domestic cotton spinning enterprises to pfer costs smoothly and raise gross margins.

< /p >

< p > the export data of textile and clothing are better, which is conducive to the mouth type < a href= "http://www.91se91.com" > cotton textile enterprise < /a >.

According to the data released by the General Administration of customs, the export of clothing and accessories in China increased by 19.98% compared with the same period in 1-4 months, and the exports of textiles, fabrics, and products increased by 11.74% over the same period last year.

Xu Yongchao said that in terms of textile and garment industry, it mainly focuses on the cotton spinning leading enterprises, such as the finished inventory, the large proportion of export sales, the high capacity utilization rate, and the current 100% maintenance rate, Huafu color spinning and Lu Tai A.

< /p >